William Blair Small-Mid Cap Growth Fund on BWX Technologies

BWX Technologies supplies complex nuclear components and services to U.S. naval nuclear propulsion, national security and growing commercial nuclear applications. The underlying business continued to post broad-based growth, an expanding backlog and improving commercial margins even as the stock lagged. The fund views the pullback largely as valuation digestion rather than deterioration in fundamentals. It continues to see the sole-source Navy franchise, accelerating commercial nuclear demand, the pending Precision Components acquisition and small modular reactor exposure as durable long-term drivers that the market underappreciates.