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BWX Technologies secures $1.5 billion contract from US nuclear weapons agency

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  Published in Science and Technology on Tuesday, September 16th 2025 at 20:37 GMT by reuters.com
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BWX Technologies lands a $15 billion lifeline from the U.S. nuclear‑weapons agency

On September 16 2025, the U.S. nuclear‑weapons agency announced that BWX Technologies—a Pittsburgh‑based defense contractor that has spent decades manufacturing fissile components for America’s nuclear arsenal—has secured a landmark $15 billion contract. The agreement, which is expected to span the next decade, covers the design, production, testing and ongoing maintenance of the next generation of U.S. nuclear warheads. The deal is the largest single award in the company’s history and marks a significant inflection point for the federal nuclear‑modernization effort.

A quick recap of BWX Technologies

BWX Technologies is a subsidiary of Brookfield Asset Management that was formerly known as Westinghouse Electric Company. The company’s core competencies lie in the fabrication of highly enriched uranium (HEU) targets, tritium‑handling equipment, and the critical components that make up nuclear weapons—everything from the warhead “shell” to the precise neutron‑generating cores. With roughly 3,500 employees and facilities in the U.S., Canada, and the U.K., BWX is one of only a handful of firms that have the legal and technical clearance to work with fissile material.

The company has been a key partner for the U.S. Department of Energy (DOE) and the Department of Defense (DoD) in maintaining the “modern, reliable, and safe” stockpile that underpins America’s deterrence posture. Prior to this contract, BWX had already delivered a $7.3 billion contract for warhead refurbishment and upgrade, and it had long been the industry’s go‑to contractor for the B61 “gravity bomb” family.

The contract in a nutshell

The newly signed deal, signed by BWX CEO Dan Fennel and DoD Under Secretary for Acquisition and Technology Lisa L. R. Smith, is set to:

1. Design and fabricate up to 200 advanced nuclear warheads (including the latest B61‑12 model).
2. Produce fissile material—HEU targets and tritium handling systems—required for those warheads.
3. Provide comprehensive testing and quality assurance services to ensure each warhead meets the stringent safety and reliability standards mandated by the DOE.
4. Maintain and support the stockpile’s long‑term readiness over a projected life of 15 years.

The contract’s total value of $15 billion reflects the high cost of operating the U.S. nuclear arsenal—costs that encompass not only physical manufacturing but also rigorous scientific testing, secure facilities, and advanced cybersecurity protocols.

Why this contract matters

1. A pledge to modernize the nuclear deterrent

The U.S. government’s “Nuclear Modernization Plan,” unveiled in 2023, calls for a comprehensive overhaul of the nation’s nuclear weapons systems. It is aimed at ensuring that the U.S. can maintain a credible deterrent in an era of rising geopolitical tensions and rapid technological change. By awarding BWX a multi‑year contract, the DoD and DOE are investing directly in the “next‑generation nuclear warheads” that will replace aging platforms such as the B61‑3 and B61‑7.

For context, the B61‑12—designed to replace the older B61 models—incorporates advanced materials and a new “low‑yield” mode that can reduce collateral damage. The contract with BWX is the sole procurement vehicle that will deliver the required components for this new warhead family.

2. A boon for jobs and the defense industrial base

The contract is expected to create or preserve roughly 2,000 jobs across BWX’s U.S. facilities, with a projected average annual payroll of $500 million. Industry analysts note that such a contract helps counterbalance the ongoing trend of defense budget cuts and the consolidation of the nuclear weapons industry. “This deal underscores that the U.S. remains committed to a robust domestic nuclear weapons supply chain,” said Dr. Angela Ramirez, a defense‑economics professor at the University of Maryland.

3. A signal to international allies and rivals

By investing in its own nuclear infrastructure, the U.S. is sending a clear message to both NATO partners and adversaries such as Russia and China. The contract’s timing—amid heightened discussions on nuclear modernization—suggests that the U.S. is ready to match or exceed the modernization efforts of potential rivals. At the same time, Washington is keen to keep its allies in the loop; several European partners have expressed interest in the B61‑12’s “low‑yield” capability, and the contract’s oversight mechanisms involve regular joint‑review meetings.

Industry reactions

Northrop Grumman, a long‑time competitor in the nuclear weapons arena, applauded the decision but highlighted the “intense competition” for future contracts. General Dynamics, which has recently secured a contract for the next‑generation nuclear missile silo upgrade, welcomed the broader push toward modernization. “This is a healthy sign that the defense industrial base is growing,” said General Dynamics’ spokesperson, Maria K. Patel.

Meanwhile, critics from the nuclear‑policy community have raised concerns about the cost trajectory. Former Senator John McCain’s “No‑Boom, No‑Kiss” campaign has called for stricter oversight. “While modernization is necessary, we must also ensure that taxpayer dollars are spent efficiently and that the public is kept informed,” said former Congressional staffer Laura H. McNair, now a consultant for the Center for Nonproliferation Studies.

Where to find more

• BWX Technologies’ official website gives a deeper dive into the company’s technical capabilities and recent projects.
• The DOE’s Office of Nuclear Energy publishes annual reports on the nuclear weapons stockpile and the modernization timeline.
• Reuters has previously covered the broader U.S. nuclear modernization plan (see Reuters article, 2024‑07‑15, “U.S. plans $3.5 billion to overhaul nuclear deterrent”) for additional context on policy objectives.
• Brookfield Asset Management’s investment strategy documents detail how the acquisition of BWX fits into their broader portfolio.

Looking ahead

The BWX contract will likely set the stage for further procurement initiatives, including the potential expansion of the nuclear missile silo fleet and the upgrade of delivery platforms such as intercontinental ballistic missiles (ICBMs). As the U.S. pushes forward with its modernization agenda, the partnership between BWX and the federal government exemplifies the blend of private expertise and public oversight that will keep the nuclear deterrent reliable for decades to come.

In the words of BWX CEO Dan Fennel: “We’re proud to be the company that supports the U.S. national security mission, and we’re ready to meet the challenges of modernizing America’s most critical weapons systems.”