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Boeing (BA) Wins Contract for MH-47G Rotary Wing Aircraft
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The Boeing Company (BA - Free Report) recently clinched a contract to support MH-47G rotary wing aircraft. The deal has been awarded by the MacDill Air Force Base, FL.
Valued at $18.7 million, the contract involves long lead components and parts support jobs for MH-47G rotary wing aircraft. Per the deal, Boeing will be accountable for replacing the aging fleet of remanufactured MH-47G aircraft that is equipped with airframe components dated beyond 45 years. The work related to this deal will be carried out at Ridley Park, PA.
What’s favoring Boeing
The rise in security threats and the need to modernize the defense infrastructure has led nations around the globe to increase their defense spending. Also, the need to meet the ever-changing dynamics of the military landscape is fueling the demand for technologically advanced weapons. In such a scenario, the demand for technologically advanced military helicopters is also gaining momentum.
Military helicopters boast abilities to carry out missions effectively. Due to their various roles in a warship, like rescue missions, surveillance, airborne missions and their ability to fly at all altitudes and hover when needed make them a versatile choice for military missions.
Consequently, many nations across the globe are increasingly spending on upgrading their existing fleets as well as on new technologically advanced helicopters. Per the report from Mordor Intelligence, the global military rotorcraft market is projected to grow at a CAGR of 4% over the 2022-2027 period.
Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. This, in turn, may result in an inflow of orders for the company, like the latest one, thus boosting its revenue generation prospects.
Peer Prospects
Considering the growing importance of the military rotorcraft market, Boeing and other defense players have also carved out a position in the military helicopter market and stand to benefit from the expanding market size.
Lockheed Martin’s (LMT - Free Report) business unit, Sikorsky, provides military and rotary-wing aircraft and is at the forefront of manufacturing the same. Its product portfolio of helicopters includes Black Hawk, Defiant X, Raider X, S-97 Raider, etc.
Lockheed has a long-term earnings growth rate of 6.9%. Its investors have gained 10.4% in the past year.
Textron (TXT - Free Report) enjoys a leading position in the manufacturing of military helicopters. Its product portfolio includes Bell 360, V-280, AH-1Z, UH-1Y etc.
Textron’s long-term earnings growth rate is pegged at 11.2%. Shares of TXT have returned 3.3% value to its investors in the past six months.
Airbus (EADSY - Free Report) offers a comprehensive range of military helicopters. Its helicopters portfolio comprises of H125M, H145M, AS565 MBe, H160M, H175M etc.
Airbus boasts a long-term earnings growth rate of 12.4%. EADSY’s stock has appreciated 4.4% in the past year.
Price Movement
In the past year, shares of Boeing have increased 4.2% against the industry’s fall of 12.4%.
Image: Shutterstock
Boeing (BA) Wins Contract for MH-47G Rotary Wing Aircraft
The Boeing Company (BA - Free Report) recently clinched a contract to support MH-47G rotary wing aircraft. The deal has been awarded by the MacDill Air Force Base, FL.
Valued at $18.7 million, the contract involves long lead components and parts support jobs for MH-47G rotary wing aircraft. Per the deal, Boeing will be accountable for replacing the aging fleet of remanufactured MH-47G aircraft that is equipped with airframe components dated beyond 45 years. The work related to this deal will be carried out at Ridley Park, PA.
What’s favoring Boeing
The rise in security threats and the need to modernize the defense infrastructure has led nations around the globe to increase their defense spending. Also, the need to meet the ever-changing dynamics of the military landscape is fueling the demand for technologically advanced weapons. In such a scenario, the demand for technologically advanced military helicopters is also gaining momentum.
Military helicopters boast abilities to carry out missions effectively. Due to their various roles in a warship, like rescue missions, surveillance, airborne missions and their ability to fly at all altitudes and hover when needed make them a versatile choice for military missions.
Consequently, many nations across the globe are increasingly spending on upgrading their existing fleets as well as on new technologically advanced helicopters. Per the report from Mordor Intelligence, the global military rotorcraft market is projected to grow at a CAGR of 4% over the 2022-2027 period.
Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. This, in turn, may result in an inflow of orders for the company, like the latest one, thus boosting its revenue generation prospects.
Peer Prospects
Considering the growing importance of the military rotorcraft market, Boeing and other defense players have also carved out a position in the military helicopter market and stand to benefit from the expanding market size.
Lockheed Martin’s (LMT - Free Report) business unit, Sikorsky, provides military and rotary-wing aircraft and is at the forefront of manufacturing the same. Its product portfolio of helicopters includes Black Hawk, Defiant X, Raider X, S-97 Raider, etc.
Lockheed has a long-term earnings growth rate of 6.9%. Its investors have gained 10.4% in the past year.
Textron (TXT - Free Report) enjoys a leading position in the manufacturing of military helicopters. Its product portfolio includes Bell 360, V-280, AH-1Z, UH-1Y etc.
Textron’s long-term earnings growth rate is pegged at 11.2%. Shares of TXT have returned 3.3% value to its investors in the past six months.
Airbus (EADSY - Free Report) offers a comprehensive range of military helicopters. Its helicopters portfolio comprises of H125M, H145M, AS565 MBe, H160M, H175M etc.
Airbus boasts a long-term earnings growth rate of 12.4%. EADSY’s stock has appreciated 4.4% in the past year.
Price Movement
In the past year, shares of Boeing have increased 4.2% against the industry’s fall of 12.4%.
Image Source: Zacks Investment Research
Zacks Rank
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.