BWX Technologies Inc (BWXT) saw its stock plummet 6.83% in Monday's trading session, despite reporting better-than-expected third-quarter earnings. The nuclear components and fuel supplier's shares took a hit as investors seemed to focus on concerns about near-term growth prospects and a potentially disappointing 2026 outlook.

The company reported adjusted earnings per share of $1.00 for Q3 2025, surpassing analysts' estimates of $0.86. Revenues came in at $866.3 million, up 29% year-over-year, driven by growth in both its Government Operations and Commercial Operations segments. However, the strong quarterly performance was overshadowed by other factors that worried investors.

One key concern was the company's record backlog of $7.4 billion, up 119% from the previous year. While this indicates strong future demand, it may have raised questions about BWXT's ability to convert this backlog into near-term revenue growth. Additionally, the company's preliminary 2026 outlook, which projected low-double-digit to low-teen adjusted EBITDA growth and high-single-digit to low-double-digit non-GAAP EPS growth, may not have met some investors' more optimistic expectations. This outlook, although positive, seemed to contribute to the stock's significant decline.