Kinectrics Significantly Increases Isotope Production Capacity to Meet Growing Global Demand

Kinectrics, a division of BWX Technologies Inc. (NYSE: BWXT), announced today the completion of a major expansion to its isotope production capabilities, reinforcing its role as a global supplier of highly enriched stable isotopes and establishing the only North American source for Yb-176, reducing the reliance on foreign material for life-saving cancer treatments.

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Kinectrics commissioned four new 2^nd generation Electromagnetic Isotope Separator (EMIS) units, which will boost its annual production capacity to over 500 grams of Ytterbium-176 (Yb-176), the precursor for Lutetium-177 (Lu-177), by the end of the year. This scaled output will support over 150,000 patient treatments annually. Lu-177 is a medical isotope used to treat prostate cancer around the world.

This milestone builds on Kinectrics’ successful launch of Yb-176 production in 2024. It supports the company’s broader vision of continuing to supply sustainable isotopes globally from Canada, ensuring a secure and scalable supply. This expansion also enables Kinectrics to grow its isotope portfolio to include Gadolinium-160 (Gd-160) later this year and other key stable isotopes.

This innovative project is supported by funding from the Government of Canada through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), and by the Government of Ontario’s Advanced Manufacturing and Innovation Competitiveness (AMIC) Program.

Construction is also underway on a new 26,000-sq.-ft. facility at Kinectrics headquarters in Toronto. The facility provides room for future growth and is designed to rapidly scale up isotope production to meet growing global demand. The expansion project is scheduled for completion next year.

“Providing a stable source of isotopes is essential to sustaining the global radiopharmaceutical supply chain,” said David Harris, President and CEO of Kinectrics. “Our ability to scale production through innovation ensures we can meet the rising demand for life-saving isotopes and support advanced radiotherapeutics for patients worldwide.”

“Southern Ontario is a powerhouse in global health innovation,” said the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario. “With support from the Government of Canada, Kinectrics is scaling up isotope production, securing a domestic supply of life-saving materials, and creating good jobs. This investment strengthens our health supply chain, boosts competitiveness, and positions Canada as a leader in advanced radiotherapeutics.”

"Kinectrics’ expansion is a testament to Ontario’s ongoing leadership in nuclear medicine and will play a pivotal role in advancing the goals set out by our government’s Life Sciences Strategy,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Through the Advanced Manufacturing and Innovation Competitiveness stream of the Regional Development Program, our government is proud to support Kinectrics’ growth, and we look forward to seeing this project strengthen the resilience of our radiopharmaceutical supply chain and improve patient care.”

“Ontario is cementing its role as a global leader in life-saving nuclear innovation,” said Stephen Lecce, Ontario Minister of Energy and Mines. “With the launch of Nuclear Isotope Innovation Council of Ontario (NIICO) and Kinectrics expanding domestic isotope production, we’re reducing dependence on foreign sources, securing critical cancer treatments, and creating Canadian jobs. By doubling medical isotope production by 2030, Ontario is again leading the world in innovation and global impact."

About Kinectrics

Kinectrics, a division of BWX Technologies Inc. (NYSE: BWXT), is a category leader in providing lifecycle management services for the electricity industry. Trusted by clients worldwide, our expertise in engineering, testing, inspection, and certification is backed by our independent laboratory and testing facilities, a diverse fleet of field inspection equipment and an award-winning team of over 1,300 engineers and technical experts. From initial design and type testing to operational deployment and maintenance services, Kinectrics collaborates closely with customers to ensure that utility assets perform safely, reliably, and efficiently throughout their entire lifecycle. Kinectrics is a founding member of the Nuclear Innovation Institute (NII) and the Canadian Nuclear Isotope Council (CNIC).

About FedDev Ontario

For 16 years, the Government of Canada, through FedDev Ontario, has worked to advance and diversify the southern Ontario economy through funding opportunities and business services that support innovation, growth and job creation in Canada’s most populous region. The Agency has delivered impressive results, which can be seen in southern Ontario businesses that are creating innovative technologies, improving productivity, growing revenues, creating jobs, and in the economic advancement of communities across the region. Learn more about the impact the Agency is having in southern Ontario by exploring our investment profiles, our Southern Ontario Spotlight, and FedDev Ontario’s X, Facebook, Instagram and LinkedIn accounts.

About the AMIC Program

The Advanced Manufacturing and Innovation Competitiveness (AMIC) Stream provides financial support to advanced manufacturing companies across Ontario by way of investments in capital equipment, technology adoption and skills development that will accelerate recovery in Ontario and place our companies in competitive global positions.

Learn more at www.ontario.ca

Forward Looking Statement

BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to management’s plans and expectations for expansion to Kinectrics’ isotope production capabilities, our ability to realize the anticipated benefits of the expansion and future revenues and demand for Yb-176. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the timing of technology development, our ability to obtain necessary regulatory approvals, licenses and permits in a timely manner and the enforcement and protection of our intellectual property rights. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2024, and subsequent reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

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