Record US Shipbuilding Request to Benefit Nuclear Names

The U.S. Navy’s FY2027 shipbuilding request, released earlier this month, calls for $65.8 billion in funding, marking the highest single-year shipbuilding ask in decades. Over one-third of that total, or more than $25 billion, targets nuclear-powered platforms. This includes advance procurement and construction dollars for ballistic missile submarines and attack submarines, as well as refueling and overhaul work on the carrier fleet.

Nuclear propulsion gives U.S. submarines and carriers unmatched endurance, stealth, and operational flexibility. Each platform relies on specialized fuel, reactor components, pumps, valves, heat exchangers, and instrumentation. The funding surge directly supports the Naval Nuclear Propulsion Program; consequently, it creates steady, long-term revenue streams for companies already active across the nuclear value chain.

Due to their extensive history of securing government contracts, several companies within the VettaFi Nuclear Renaissance Index (NUKZX) are well-positioned to capitalize on the increase in funding for nuclear programs. NUKZX is the underlying index for the Range Nuclear Renaissance Index ETF (NUKZ).

U.S. Companies Positioned for Naval Nuclear Tailwinds

BWX Technologies (BWXT) serves as the primary manufacturer of naval nuclear fuel and reactor components for the U.S. submarine and carrier fleet. The company has delivered fuel and hardware for every class of nuclear-powered vessel in the Navy inventory. 

In parallel with its naval propulsion work, BWXT is advancing critical government-side fuel capabilities. Under a $1.5 billion contract with the National Nuclear Security Administration (NNSA), BWXT is reestablishing domestic uranium enrichment capacity. More specifically, this project will initially demonstrate low-enriched uranium production before transitioning to highly enriched uranium for naval propulsion needs.

See more: Companies Powering Nuclear Subs & Advanced Reactor Tech

Curtiss-Wright (CW) supplies mission-critical pumps, valves, generators, and instrumentation that operate at the heart of naval nuclear propulsion plants. The company has supported every U.S. Navy nuclear submarine and aircraft carrier program for decades. Its components are integral to reactor coolant systems and auxiliary power, making CW a key enabler of the submarine and carrier build-out included in the budget request.

Graham Corporation (GHM), through its specialized fluid and heat transfer technologies, provides steam plant equipment tailored for nuclear-powered surface ships and submarines. These systems manage steam and cooling demands within the propulsion plants of select submarines and carriers. Follow-on orders for these programs have already delivered multi-year visibility to revenues. The new shipbuilding dollars are expected to sustain and expand that pipeline.

Lockheed Martin (LMT) applies its extensive nuclear engineering expertise to both defense and space programs. The company has an extensive history in naval nuclear program support, and is a key partner with NASA and the Defense Advanced Research Projects Agency on advanced space nuclear technologies, including nuclear thermal propulsion. This work leverages Lockheed’s proven capabilities in high-reliability nuclear systems and underscores the expanding role of nuclear technology beyond terrestrial power and naval propulsion.

UK Parallel Reinforces Global Naval-to-Civilian Synergies

In the United Kingdom, Rolls-Royce (RR.LN) has long served as the design authority for the Royal Navy’s nuclear propulsion plants (read more). The company’s pressurized water reactor technology powers the UK submarine fleet and provides the foundational expertise for its small modular reactor (SMR) program. 

On April 13, 2026, Rolls-Royce SMR signed a landmark contract with Great British Energy – Nuclear to advance the UK’s first SMR fleet. This builds directly on decades of naval nuclear experience, accelerating the transition of proven propulsion technology into commercial power applications. The UK example illustrates how naval programs can seed and de-risk civilian nuclear deployment, creating additional opportunities for supply-chain partners with dual-use capabilities.

Broader Benefits for NUKZX Investors

The Navy’s shipbuilding request supports both immediate procurement and long-lead industrial investments that benefit the same ecosystem of manufacturers, fuel providers, and service firms already positioned for commercial reactor growth. Naval work offers high barriers to entry, multi-decade contract visibility, and revenue streams that are largely insulated from commercial power-market cycles.

BWXT, CW, GHM, LMT, and RR.LN are all constituents of NUKZX. NUKZX includes companies across the nuclear value chain, from fuel and components to engineering, construction, and utilities.

In comparison to similarly themed ETFs, NUKZ exhibits significantly lower volatility due to the inclusion of companies in the industrial and utility sectors. Over the trailing 3-month and 12-month periods, NUKZ has recorded annualized volatility of 27% and 26%, respectively. A competing ETF with more uranium mining exposure saw annualized volatility of  46% and 42% for the same respective periods. 

Related Research:

Doors Swing Open for Advanced Nuclear in the U.K.

Companies Powering Nuclear Subs & Advanced Reactor Tech

Not All Nuclear Exposure Is Created Equally

The Future of Uranium Enrichment is Being Developed Today

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