Keeley Teton Comments on BWX Technologies

BWX Technologies (

BWXT, Financial) provides nuclear components and products to the U.S. Navy, Canadiannuclear power markets, and the medical field for use in isotopes along with environmental site restoration services. The company’s stock came under pressure in the quarter after posting results that were below consensus expectations driven by COVID-related disruptions domestically and timing of projects and lower government reimbursement in Canada. Despite these challenges, the stock remains attractive as the company is nearing an end to an elevated capital expenditure cycle that supported the growth of the Navy’s shipbuilding needs. This should lead to accelerating free cash flow generation that could be used for share repurchases and dividend increases.

From

Keeley-Teton Advisors, LLC (Trades, Portfolio)’s Mid Cap Dividend Value Fund fourth-quarter 2021 commentary.