Ananym says BWX Technologies could double by reviving a small modular reactor design for data centers. The activist's push puts board engagement as the next catalyst.
Activist investor Ananym has made a public case that BWX Technologies (BWXT) could double in value. The firm argues that the defense contractor would unlock that upside by reviving a small modular reactor (SMR) design specifically to meet surging electricity demand from data centers.
The investment firm’s argument reframes BWXT’s dormant nuclear engineering capability as a direct play on the intersection of two megatrends: explosive growth in data-center power consumption and a policy-driven nuclear revival.
Ananym’s takeout relies on three core assertions that tie the company’s engineering DNA to a commercial power market that is desperate for new supply.
Power procurement has become the binding constraint for hyperscale data-center operators. Forecasts from grid planners show that the largest cloud regions will need multiple gigawatts of new capacity this decade. Nuclear power, particularly in the form of factory-built SMRs, has moved from a niche idea to a central part of the conversation because it delivers baseload power with zero carbon emissions and a small physical footprint.
Companies such as NVIDIA have driven AI accelerator adoption that directly raises per-rack power density, making the data-center building cycle the most electricity-intensive in history. That dynamic gives an edge to any credible near-term SMR design, and Ananym is effectively arguing that BWXT already owns one that just needs to be dusted off.
BWXT’s earlier foray into commercial SMRs came through the mPower joint venture with Bechtel. The project was shelved in 2014 as cost estimates escalated and the market for new reactors remained dormant. The underlying design work, however, was partially completed and received early-stage regulatory engagement.
Restarting that program would require fresh investment. BWXT would need to allocate engineering capital and rebuild a licensing timeline. The counterpoint is that it would still be faster than a pure startup building from scratch, and BWXT’s existing nuclear manufacturing footprint – already certified for naval-quality components – could provide a head start on fabrication.
The commercial case has changed dramatically since 2014. Where mPower once targeted a utility market that was indifferent to new nuclear, today’s data-center operators are willing to sign long-term power purchase agreements at premium rates for behind-the-meter nuclear supply, precisely the structure an SMR could serve.
On AlphaScala’s proprietary scoring system, BWXT registers a Moderate Alpha Score of 65 out of 100, reflecting a balanced risk-reward profile in the Industrials sector. The score treats the core naval-reactor business as the anchor, while the activist’s SMR catalyst is an optionality overlay that has yet to influence the rating.
The stock’s next test is whether Ananym can convert a public call into boardroom pressure. A formal demand for a feasibility study or a public commitment to re-evaluate the SMR design would be the first tangible marker. Without it, the thesis remains a narrative that could fade if no institutional shareholder joins the push.
Execution risk is substantial. Any SMR program must navigate Nuclear Regulatory Commission licensing, secure a lead customer, and fund multi-year development before revenue materializes. For traders, the gap between Ananym’s doubling target and today’s price will be defined by whether management engages – or deflects – the SMR question on the next earnings call.
Drafted by the AlphaScala research model and grounded in primary market data – live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.