BWX Technologies Inc (BWXT) stock continued its downward trend, plummeting 6.64% in pre-market trading on Tuesday, following a 6.83% decline in Monday's session. The extended sell-off comes despite the nuclear components and fuel supplier reporting better-than-expected third-quarter earnings for 2025.

The company posted adjusted earnings per share of $1.00 for Q3 2025, surpassing analysts' estimates of $0.86. Revenues also impressed, coming in at $866.3 million, up 29% year-over-year. However, investors appear to be focusing on concerns about near-term growth prospects and a potentially disappointing 2026 outlook.

A key factor contributing to the stock's decline is BWX Technologies' record backlog of $7.4 billion, up 119% from the previous year. While this indicates strong future demand, it has raised questions about the company's ability to convert this backlog into near-term revenue growth. Additionally, the company's preliminary 2026 outlook, projecting low-double-digit to low-teen adjusted EBITDA growth and high-single-digit to low-double-digit non-GAAP EPS growth, seems to have fallen short of some investors' more optimistic expectations. This outlook, although positive, appears to be a primary driver behind the stock's significant decline in both Monday's session and Tuesday's pre-market trading.