Amentum JV Secures CAD$1.2B Annual Nuclear Lab Contract in Canada

Amentum Holdings Inc. (NYSE:AMTM) is one of the best new stocks to buy now. On June 12, Amentum announced that it had been awarded a new contract by Atomic Energy of Canada Limited/AECL. The contract is for the provision of operations and management solutions for Canadian Nuclear Laboratories/CNL, to advance nuclear science, technology, and innovation throughout Canada.

The contract is valued at ~CAD$1.2 billion annually on average and was awarded to Nuclear Laboratory Partners of Canada Inc./NLPC. NLPC is a joint venture led by BWX Technologies Inc. (NYSE:BWXT) and includes Amentum, Kinectrics, and Battelle. The agreement features a 6-year base period, with potential extensions based on performance for a total duration of up to 20 years.

Amentum JV Secures CAD$1.2B Annual Nuclear Lab Contract in Canada

A close up of a technician working on a semiconductor chip in a clean room.

AECL operates under a Government-owned and Contractor-operated (GoCo) model through Canadian Nuclear Laboratories. It also owns the intellectual property for the CANDU, which is a heavy water nuclear reactor that uses natural uranium fuel, heavy water as both a moderator and coolant, and allows for refueling while the reactor is online.

Amentum Holdings Inc. (NYSE:AMTM) provides engineering and technology solutions to the US and allied government agencies. Atomic Energy of Canada Limited is a federal Crown corporation with a mandate to drive nuclear opportunities for Canada. BWX Technologies Inc. (NYSE:BWXT) manufactures and sells nuclear components in the US, Canada, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.