Improved Nuclear Power Prospects Lifted BWX Technologies (BWXT) in Q2

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market showcased a significant recovery during the quarter, rising 23% from low to end the quarter at a record high. U.S. large-cap stocks gained 11.1% in the quarter, and within the large-cap category, growth stocks outperformed value stocks. In this environment, the fund returned 16.42% (net) during the quarter, exceeding 8.59% returns of the Russell 2500 Index and 7.29% returns of the secondary benchmark, the Russell 2500 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Meridian Contrarian Fund highlighted stocks such as BWX Technologies, Inc. (NYSE:BWXT). Headquartered in Lynchburg, Virginia, BWX Technologies, Inc. (NYSE:BWXT) is a nuclear component manufacturing and distributing company. The one-month return of BWX Technologies, Inc. (NYSE:BWXT) was 8.74%, and its shares gained 62.27% of their value over the last 52 weeks. On September 25, 2025, BWX Technologies, Inc. (NYSE:BWXT) stock closed at $176.21 per share, with a market capitalization of $16.105 billion.

Meridian Contrarian Fund stated the following regarding BWX Technologies, Inc. (NYSE:BWXT) in its second quarter 2025 investor letter:

“BWX Technologies, Inc. (NYSE:BWXT) manufactures and services power generation and nuclear components for U.S. government, industrial, and utility customers. We invested in 2023 amid price weakness that resulted from declining earnings tied to the company’s cash-intensive investments in capacity. Our investment was based on the company’s well-established position in the nuclear value chain, including technologies that support the life extension of existing plants, new large-scale reactors, and small modular reactors. The stock performed well during the quarter as global growth prospects improved for nuclear power, reinforcing our long-held thesis. We added to our position early in the quarter, which contributed positively to performance.”

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BWX Technologies, Inc. (NYSE:BWXT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held BWX Technologies, Inc. (NYSE:BWXT) at the end of the second quarter, same as 52 in the previous quarter. BWX Technologies, Inc. (NYSE: BWXT) reported second quarter revenue of $764 million, reflecting a 12% increase, driven by growth in both of its segments. While we acknowledge the risk and potential of BWX Technologies, Inc. (NYSE:BWXT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BWX Technologies, Inc. (NYSE:BWXT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered BWX Technologies, Inc. (NYSE:BWXT) and shared the list of stocks Jim Cramer commented on. BWX Technologies, Inc. (NYSE:BWXT) was one among the top individual contributors of Loomis Sayles Small/Mid Cap Growth Fund in Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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