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L3Harris (LHX) Clinches $61M Deal to Supply Bomb Rack Unit
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L3Harris Technologies Inc. (LHX - Free Report) recently clinched a contract to support F-16 aircraft. The award has been offered by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Valued at $60.7 million, the contract is expected to be completed by Oct 4, 2027. Per the terms of the deal, L3Harris will provide Bomb Rack Unit (BRU) 57B replacement parts for F-16 jets.
Work related to the deal will be executed in Amityville, NY.
Importance of Bomb Rack
L3Harris develops pyrotechnic multiple carriage systems that offer a miniature munition store interface and are also Universal Armament Interface Type I and UAI Type II compliant for tactical strike aircraft such as the F/A-18 Super Hornet and the F-16 Fighting Falcon.
Notably, the LHX’s BRU-57 is used to increase the store carriage capacity of the F-16 aircraft, thereby enhancing mission effectiveness and efficiency. The BRU enhances pilot safety by allowing a mix of weapons and improves ground crew effectiveness through thoughtful operations and clearly visible indicators of critical release system elements.
Prospects
The United States, which is the largest exporter of military weaponry worldwide, is also strengthening military resources. This is quite evident from the fiscal 2023 budget proposal worth $773 billion put forward by the Biden administration for the Department of Defense, with $56.5 billion planned investments in combat aircraft. Impressively, the defense budget request reflects a 4.1% increase from the fiscal 2022 enacted amount.
Such solid budgetary provisions should usher in contracts involving the production and upgrade of aircraft like the latest one. This in turn must benefit defense contractors like L3Harris, which designs and manufactures advanced EO/IR sensors and surveillance as well as targeting systems. The company also provides modernization and life extension maintenance upgrades as well as support services for military aircraft.
The aforementioned budgetary provision also bodes well for other defense primes like Northrop Grumman (NOC - Free Report) , Boeing (BA - Free Report) and Textron (TXT - Free Report) , which bear expertise in manufacturing as well as upgrading military aircraft.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technical leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance and aircraft self-protection systems. It also enables warfighters to accomplish missions under any conditions.
NOC stock boasts a long-term earnings growth rate of 2.2%. The Zacks Consensus Estimate for 2022 sales implies growth of 1.9% from the 2021 reported figure.
Boeing Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker, and T-7A Red Hawk. This segment also produces rotorcraft and rotary-wing programs such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.
BA stock boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for 2022 sales implies growth of 14.9% from the 2021 reported figure.
Textron’s business unit, Textron Aviation Defense, designs, builds as well as supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include the Beechcraft T-6C trainer and AT-6 Wolverine.
TXT stock boasts a long-term earnings growth rate of 12.5%. The Zacks Consensus Estimate for 2022 sales implies growth of 5.7% from the 2021 reported figure.
Price Movement
In the past year, shares of L3Harris have lost 8.4% compared with the industry’s 23.4% decline.
Image Source: Zacks Investment Research
Zacks Rank
L3Harris currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
L3Harris (LHX) Clinches $61M Deal to Supply Bomb Rack Unit
L3Harris Technologies Inc. (LHX - Free Report) recently clinched a contract to support F-16 aircraft. The award has been offered by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Valued at $60.7 million, the contract is expected to be completed by Oct 4, 2027. Per the terms of the deal, L3Harris will provide Bomb Rack Unit (BRU) 57B replacement parts for F-16 jets.
Work related to the deal will be executed in Amityville, NY.
Importance of Bomb Rack
L3Harris develops pyrotechnic multiple carriage systems that offer a miniature munition store interface and are also Universal Armament Interface Type I and UAI Type II compliant for tactical strike aircraft such as the F/A-18 Super Hornet and the F-16 Fighting Falcon.
Notably, the LHX’s BRU-57 is used to increase the store carriage capacity of the F-16 aircraft, thereby enhancing mission effectiveness and efficiency. The BRU enhances pilot safety by allowing a mix of weapons and improves ground crew effectiveness through thoughtful operations and clearly visible indicators of critical release system elements.
Prospects
The United States, which is the largest exporter of military weaponry worldwide, is also strengthening military resources. This is quite evident from the fiscal 2023 budget proposal worth $773 billion put forward by the Biden administration for the Department of Defense, with $56.5 billion planned investments in combat aircraft. Impressively, the defense budget request reflects a 4.1% increase from the fiscal 2022 enacted amount.
Such solid budgetary provisions should usher in contracts involving the production and upgrade of aircraft like the latest one. This in turn must benefit defense contractors like L3Harris, which designs and manufactures advanced EO/IR sensors and surveillance as well as targeting systems. The company also provides modernization and life extension maintenance upgrades as well as support services for military aircraft.
The aforementioned budgetary provision also bodes well for other defense primes like Northrop Grumman (NOC - Free Report) , Boeing (BA - Free Report) and Textron (TXT - Free Report) , which bear expertise in manufacturing as well as upgrading military aircraft.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technical leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance and aircraft self-protection systems. It also enables warfighters to accomplish missions under any conditions.
NOC stock boasts a long-term earnings growth rate of 2.2%. The Zacks Consensus Estimate for 2022 sales implies growth of 1.9% from the 2021 reported figure.
Boeing Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker, and T-7A Red Hawk. This segment also produces rotorcraft and rotary-wing programs such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.
BA stock boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for 2022 sales implies growth of 14.9% from the 2021 reported figure.
Textron’s business unit, Textron Aviation Defense, designs, builds as well as supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include the Beechcraft T-6C trainer and AT-6 Wolverine.
TXT stock boasts a long-term earnings growth rate of 12.5%. The Zacks Consensus Estimate for 2022 sales implies growth of 5.7% from the 2021 reported figure.
Price Movement
In the past year, shares of L3Harris have lost 8.4% compared with the industry’s 23.4% decline.
Image Source: Zacks Investment Research
Zacks Rank
L3Harris currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.