Investors face a choice between high-growth disruption and steady government contracting when choosing between Space Exploration Technologies (NASDAQ:SPCX), better known as SpaceX, and BWX Technologies (NYSE:BWXT) for their portfolios in 2026.
SpaceX’s focus on reusable rocketry and satellite internet contrasts with the nuclear manufacturing expertise of BWX Technologies. While one aims to lower the cost of reaching orbit, the other provides critical nuclear solutions for global security and clean energy.
The case for SpaceX
Space Exploration Technologies designs and operates reusable rockets, the Starship platform, and the Starlink broadband service. By March 2026, the company served 10.3 million Starlink subscribers across 164 countries and territories. Its business strategy centers on reducing launch costs through reusability while leveraging its own rockets to deploy a massive satellite constellation.
In its 2025 fiscal year (FY), revenue reached $18.7 billion, representing revenue growth of 33% compared to the previous year. Despite this top-line expansion, the company reported a net loss of $4.9 billion for the period. This performance reflects a shift from the prior year when the company achieved a positive net income during its aggressive expansion phase.
As of its December 2025 balance sheet, the current ratio stands at 1.4x, which measures a company’s ability to cover short-term debts with current assets. The company carries a debt-to-equity ratio of 0.6x, comparing its total debt to the value of shareholder equity. Free cash flow, or the cash remaining after the business pays for its operating activities and investments in physical equipment, was negative $14 billion in FY 2025. Note that stock-based compensation (SBC) represented 28.7% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for BWX Technologies
BWX Technologies provides specialized nuclear components and services among defense stocks and global security industries. Its primary customer is the U.S. government, which accounted for 68% of consolidated revenues in 2025. Customer concentration like this adds a layer of risk to the business, though it often provides long-term revenue visibility through multi-year contracts.
In FY 2025, revenue reached $3.2 billion, which was an increase of 18% over the prior year. The company reported net income of $329.9 million, resulting in a net margin of 10.3%. This level of profitability has remained relatively stable over the last three fiscal years as the company expanded its manufacturing footprint.
