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Textron's (TXT) Unit Wins $12.5M Deal for the AT-6 Jet Program
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Textron Inc.’s (TXT - Free Report) business unit, Textron Aviation, recently clinched a contract for the procurement of AT-6 aircraft components. The deal has been awarded by the Air Force Life Cycle Management Center, Tinker Air Force Base, Ohio.
Valued at $12.5 million, the contract is expected to get completed by Feb 28, 2024. The work related to the deal will be carried out in Wichita, KS.
Significance of AT-6
The Beechcraft AT-6 Light-Attack and Armed Reconnaissance aircraft boasts a full suite of synchronized ground-based training capabilities and an established global logistics infrastructure.
Moreover, it is built for light attacks, armed reconnaissance and counterinsurgency missions. The AT-6 leverages millions of dollars in the U.S. Air Force’s T-6, A-10C and MC-12 platforms. This translates into a lower cost, thereby making the AT-6 available at a fraction of the acquisition, sustainment and training costs of more traditional combat aircraft.
What’s Favoring Textron?
Nations are increasing their defense spending to strengthen their defense structure against any sudden assault. In such a scenario, a combat-proven military aircraft plays a significant role in military missions. A rise in the demand for military jets has been witnessed, highlighting a significant order inflow for military aircraft manufacturers.
Textron Aviation, which is home to the iconic Beechcraft, Cessna and Hawker brands, accounts for more than half of all general aviation aircraft flying. Its impressive aircraft product portfolio has resulted in multiple order wins for the company.
Consequently, Textron Aviation's backlog increased 54% during the nine months ended Sep 30, 2022, reflecting solid demand for Textron’s aircraft. Moreover, per a report by Fortune Business Insights, the global military aircraft market is expected to witness a CAGR of 3.1% through 2026.
Such a strong backlog and abounding market growth prospects boost solid top-line growth expectations for Textron Aviation and also ensure a steady flow of orders involving the military aircraft going ahead as TXT enjoys an established position in the military aircraft market.
Peer Moves
Defense players that can reap the benefits of the expanding military aircraft market are as follows:
Since its inception, Northrop Grumman (NOC - Free Report) has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, Northrop Grumman has been providing manned solutions to customers worldwide.
It has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye. Northrop Grumman boasts a long-term earnings growth rate of 3.3%. Shares of NOC have delivered 40.2% to investors in the past year.
Airbus’ (EADSY - Free Report) military aircraft comprise A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most modern swing-role fighter ever conceived.
Airbus has a long-term earnings growth rate of 12.4%. EADSY shares have increased 15.2% in the past six months.
Lockheed Martin’s (LMT - Free Report) product portfolio includes high-performance combat, air mobility and reconnaissance and surveillance aircraft. Its product range includes the Black Hawk, C-5 Galaxy, F-16 Fighting Falcon, F-35 Lightning II, etc.
Lockheed Martin has a long-term earnings growth rate of 6.2%. LMT shares have risen 40% in the past year.
Price Movement
In the past six months, shares of Textron have increased 19.5% compared with the industry’s growth of 16.4%.
Image: Shutterstock
Textron's (TXT) Unit Wins $12.5M Deal for the AT-6 Jet Program
Textron Inc.’s (TXT - Free Report) business unit, Textron Aviation, recently clinched a contract for the procurement of AT-6 aircraft components. The deal has been awarded by the Air Force Life Cycle Management Center, Tinker Air Force Base, Ohio.
Valued at $12.5 million, the contract is expected to get completed by Feb 28, 2024. The work related to the deal will be carried out in Wichita, KS.
Significance of AT-6
The Beechcraft AT-6 Light-Attack and Armed Reconnaissance aircraft boasts a full suite of synchronized ground-based training capabilities and an established global logistics infrastructure.
Moreover, it is built for light attacks, armed reconnaissance and counterinsurgency missions. The AT-6 leverages millions of dollars in the U.S. Air Force’s T-6, A-10C and MC-12 platforms. This translates into a lower cost, thereby making the AT-6 available at a fraction of the acquisition, sustainment and training costs of more traditional combat aircraft.
What’s Favoring Textron?
Nations are increasing their defense spending to strengthen their defense structure against any sudden assault. In such a scenario, a combat-proven military aircraft plays a significant role in military missions. A rise in the demand for military jets has been witnessed, highlighting a significant order inflow for military aircraft manufacturers.
Textron Aviation, which is home to the iconic Beechcraft, Cessna and Hawker brands, accounts for more than half of all general aviation aircraft flying. Its impressive aircraft product portfolio has resulted in multiple order wins for the company.
Consequently, Textron Aviation's backlog increased 54% during the nine months ended Sep 30, 2022, reflecting solid demand for Textron’s aircraft. Moreover, per a report by Fortune Business Insights, the global military aircraft market is expected to witness a CAGR of 3.1% through 2026.
Such a strong backlog and abounding market growth prospects boost solid top-line growth expectations for Textron Aviation and also ensure a steady flow of orders involving the military aircraft going ahead as TXT enjoys an established position in the military aircraft market.
Peer Moves
Defense players that can reap the benefits of the expanding military aircraft market are as follows:
Since its inception, Northrop Grumman (NOC - Free Report) has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, Northrop Grumman has been providing manned solutions to customers worldwide.
It has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye. Northrop Grumman boasts a long-term earnings growth rate of 3.3%. Shares of NOC have delivered 40.2% to investors in the past year.
Airbus’ (EADSY - Free Report) military aircraft comprise A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most modern swing-role fighter ever conceived.
Airbus has a long-term earnings growth rate of 12.4%. EADSY shares have increased 15.2% in the past six months.
Lockheed Martin’s (LMT - Free Report) product portfolio includes high-performance combat, air mobility and reconnaissance and surveillance aircraft. Its product range includes the Black Hawk, C-5 Galaxy, F-16 Fighting Falcon, F-35 Lightning II, etc.
Lockheed Martin has a long-term earnings growth rate of 6.2%. LMT shares have risen 40% in the past year.
Price Movement
In the past six months, shares of Textron have increased 19.5% compared with the industry’s growth of 16.4%.
Image Source: Zacks Investment Research
Zacks Rank
Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.