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Boeing (BA) Wins Contract to Support E6B Aircraft Program
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The Boeing Company (BA - Free Report) clinched a contract for repairing the E6B aircraft. The award has been offered by the Defense Logistics Agency Aviation, Philadelphia, PA.
Valued at $15.5 million, the contract is expected to be completed by Dec 31, 2023.
What’s Favoring Boeing?
Boeing, one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Apart from manufacturing missiles as well as space and tanker aircraft, the company's expertise lies in a wide variety of defense aircraft and jet components, repairs and modification-related programs.
Notably, its E-6B is a dual-mission aircraft capable of fulfilling either the no-fail TACAMO mission or the airborne strategic command post mission. The aircraft is equipped with an airborne launch control system, which is capable of launching U.S. land-based intercontinental ballistic missiles.
BA's combat-proven aerospace programs and associated services, along with the rapidly growing need for military aircraft due to heightened geopolitical uncertainties worldwide, have resulted in a solid inflow of orders from the Pentagon. The latest contract win is an example of that. Such strong order flows are expected to boost the defense business segment’s top line.
Growth Prospects
With the United States being the world’s largest weapons exporter, the nation has been spending amply on defense products. Boeing, a prominent jet maker, therefore enjoys a dominant position in the combat aircraft market.
Per a Mordor Intelligence report, the global military aviation aircraft market is expected to witness a CAGR of 7.4% during 2023-2028. North America constitutes the largest share of the aforementioned market.
Such developments can be attributed to a rise in global threats and geopolitical instabilities as well as increased defense spending. These projections are expected to benefit Boeing, along with other U.S.-based combat jet manufacturers like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Textron (TXT - Free Report) .
Since its inception, Northrop Grumman has been a pioneer in the development of combat manned aircraft. The company has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance and aircraft self-protection systems that enable warfighters to accomplish missions anytime and anywhere, under any condition.
NOC boasts a long-term earnings growth rate of 4.1%. The Zacks Consensus Estimate for the company’s 2023 sales implies a 5.5% improvement from that reported in 2022.
Lockheed’s Aeronautics business segment is engaged in the research, design, development, manufacturing, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include F-35, C-130 Hercules, F-16 Fighting Falcon and F-22 Raptor jets.
LMT boasts a long-term earnings growth rate of 6.5%. The Zacks Consensus Estimate for the company’s 2023 sales implies a 0.9% improvement from that reported in 2022.
Textron’s business unit Textron Aviation Defense designs, builds and supports versatile and globally-known military aircraft, preferred for training and attack missions. The unit’s military trainer and defense aircraft includes the T-6 trainer, which has been used to train pilots from more than 20 countries, and the AT-6 light attack military aircraft.
TXT boasts a long-term earnings growth rate of 11.2%. The Zacks Consensus Estimate for the company’s 2023 sales implies a 7.7% improvement from the previous year’s reported figure.
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Boeing (BA) Wins Contract to Support E6B Aircraft Program
The Boeing Company (BA - Free Report) clinched a contract for repairing the E6B aircraft. The award has been offered by the Defense Logistics Agency Aviation, Philadelphia, PA.
Valued at $15.5 million, the contract is expected to be completed by Dec 31, 2023.
What’s Favoring Boeing?
Boeing, one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Apart from manufacturing missiles as well as space and tanker aircraft, the company's expertise lies in a wide variety of defense aircraft and jet components, repairs and modification-related programs.
Notably, its E-6B is a dual-mission aircraft capable of fulfilling either the no-fail TACAMO mission or the airborne strategic command post mission. The aircraft is equipped with an airborne launch control system, which is capable of launching U.S. land-based intercontinental ballistic missiles.
BA's combat-proven aerospace programs and associated services, along with the rapidly growing need for military aircraft due to heightened geopolitical uncertainties worldwide, have resulted in a solid inflow of orders from the Pentagon. The latest contract win is an example of that. Such strong order flows are expected to boost the defense business segment’s top line.
Growth Prospects
With the United States being the world’s largest weapons exporter, the nation has been spending amply on defense products. Boeing, a prominent jet maker, therefore enjoys a dominant position in the combat aircraft market.
Per a Mordor Intelligence report, the global military aviation aircraft market is expected to witness a CAGR of 7.4% during 2023-2028. North America constitutes the largest share of the aforementioned market.
Such developments can be attributed to a rise in global threats and geopolitical instabilities as well as increased defense spending. These projections are expected to benefit Boeing, along with other U.S.-based combat jet manufacturers like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Textron (TXT - Free Report) .
Since its inception, Northrop Grumman has been a pioneer in the development of combat manned aircraft. The company has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance and aircraft self-protection systems that enable warfighters to accomplish missions anytime and anywhere, under any condition.
NOC boasts a long-term earnings growth rate of 4.1%. The Zacks Consensus Estimate for the company’s 2023 sales implies a 5.5% improvement from that reported in 2022.
Lockheed’s Aeronautics business segment is engaged in the research, design, development, manufacturing, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include F-35, C-130 Hercules, F-16 Fighting Falcon and F-22 Raptor jets.
LMT boasts a long-term earnings growth rate of 6.5%. The Zacks Consensus Estimate for the company’s 2023 sales implies a 0.9% improvement from that reported in 2022.
Textron’s business unit Textron Aviation Defense designs, builds and supports versatile and globally-known military aircraft, preferred for training and attack missions. The unit’s military trainer and defense aircraft includes the T-6 trainer, which has been used to train pilots from more than 20 countries, and the AT-6 light attack military aircraft.
TXT boasts a long-term earnings growth rate of 11.2%. The Zacks Consensus Estimate for the company’s 2023 sales implies a 7.7% improvement from the previous year’s reported figure.