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 posted adjusted earnings per share of $1.00 for Q3 2025, surpassing analysts' estimates of $0.86, with revenues coming in at $866.3 million, up 29% year-over-year.

However, investors appeared to focus on other factors that overshadowed the strong quarterly performance. The company's backlog reached a record $7.4 billion, up 119% from the previous year, primarily due to large multi-year special materials projects. While this indicates strong future demand, it may have raised concerns about near-term growth prospects.

Furthermore, BWX Technologies provided a 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. This outlook, while positive, may not have met some investors' more optimistic expectations, potentially contributing to the stock's decline. The market's reaction suggests that investors were looking for stronger growth projections or may have concerns about the company's ability to execute on its expanding backlog.