Ananym Capital Management told investors this week that BWX Technologies may have untapped upside if it revives a previously shelved pressurized water small modular reactor design to address rapidly growing demand for clean energy. The activist firm, which is two years old and has owned BWX for months, presented its case publicly at the Sohn Investment Conference in New York when co-founder Alex Silver discussed the position.
Nearly a decade ago, BWX Technologies put its mPower pressurized water small modular reactor design into archive. Ananym says that design could now be commercially viable given rising demand from energy-hungry customers such as data center operators, and that bringing it back could materially increase shareholder value.
BWX Technologies, based in Lynchburg, Virginia, currently has a market value of about $19 billion. The company supplies nuclear reactors to the U.S. Navy and is involved in producing and maintaining advanced commercial nuclear components. It also makes radioisotopes used in diagnostic and therapeutic medical treatments. The stock closed on Tuesday at $206.83 on the New York Stock Exchange and has advanced roughly 93% over the past 12 months, a rise Ananym attributes to expanding energy needs, higher defense spending, government and commercial investment in nuclear power, and growth in nuclear medicine.
Multiple strategic paths
Ananym lays out several routes BWX could take to deliver greater returns to shareholders. If BWX remains a so-called picks-and-shovels supplier - providing components and services to builders of large reactors and boiling water small modular reactors - the activist firm estimates the stock could rise by approximately 45% from current levels. That, Ananym contends, reflects the value of BWX's existing supplier role in a market with expanding nuclear build activity.
However, the activist investor also highlights a different scenario: because there is no clear market leader among pressurized water small modular reactor makers, BWX could pursue commercialization of its mPower concept either independently or via a joint venture. Ananym argues that doing so could push the share price well beyond the 45% figure. The firm maintains this strategy would not necessarily cannibalize BWX's existing business, saying there are distinct buyers for pressurized versus boiling water SMR technologies and that demand is ample for both.
Policy backdrop and activist pedigree
Ananym referenced broader policy goals in framing its investment thesis, noting an administration target to expand nuclear energy capacity fourfold by 2050. The activist's founding partners bring notable track records in shareholder activism. Co-founder Charlie Penner helped challenge Exxon Mobil's board in 2021 while at the hedge fund Engine No. 1 and was previously a partner at Jana Partners. Co-founder Alex Silver was a founding partner at P2 Capital Partners. Together the pair have pushed for significant changes at other companies, including calls for corporate actions at Henry Schein in November 2024 and a push for Baker Hughes to spin off its Oilfield Services & Equipment business.
Where the upside could come from
Ananym's valuation scenarios depend on strategic choices by BWX. The activist argues that retaining a supplier role offers steady upside tied to continued commercial and government investment in nuclear infrastructure and medical isotope demand. Pursuing the archived pressurized water small modular reactor design, by contrast, could create a new revenue stream and expand the company's addressable market, in Ananym's view.
For now, the outcome remains contingent on whether BWX elects to move the mPower design out of archive and whether any commercialization effort would be executed independently or through partners. Ananym presented its case publicly but the investment thesis requires company action to be realized.