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Boeing (BA) Wins Deal to Support Unmanned Undersea Vehicles
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The Boeing Company (BA - Free Report) recently clinched a modification contract to provide engineering support for the Extra Large Unmanned Undersea Vehicle (“XLUUV”). The award has been offered by the Naval Sea Systems Command, Washington, D.C.
Valued at $10.6 million, the contract is expected to be completed by September 2024. The majority of the work related to this deal will be carried out in Huntington Beach, CA.
What’s Supporting Boeing?
For 100 years, Boeing has been leading unmanned technology innovation and integration from sea to air to space.
Boeing’s Echo Voyager is a fully autonomous XLUUV-class Unmanned Undersea Vehicle (“UUV”) that can be used for various missions, which were previously impossible due to traditional UUV limitations. The vehicle’s advanced autonomy enables it to perform at sea for months at a time, delivering a more affordable, mission-capable solution over traditional UUVs.
Prior to Echo Voyager, Boeing developed Echo Seeker and Echo Ranger, autonomous and large UUVs as test beds for its current XLUUV. The aforementioned discussion reflects the proven expertise of BA in the UUV space. This is likely to have led to a steady inflow of contracts for the company, like the latest one. This, in turn, should bolster its revenue generation prospects from the UUV product line.
Growth Prospects
The recent tiff between Ukraine and Russia has led other nations to strengthen their defense landscape to deter any war-like situation. UUVs are noted for their ability to carry out dangerous maritime operations, such as mine countermeasure missions and harbor patrol. Therefore, as investments in undersea warfare capabilities have increased manifold, so has the demand for state-of-the-art UUVs. Long-endurance, autonomous maritime vehicles offer new ways to gather data and conduct missions in the ocean and communicate across domains to deliver actionable intelligence.
With technological advancements, nations are more rapidly adopting artificial intelligence and machine learning technologies to increase the autonomy of UUVs. As a result, hefty investments in developing and acquiring autonomous marine systems can be expected in the coming days, thereby boosting the UUV market. To this end, the Fortune Business Insights firm projects the global unmanned underwater vehicle market to witness a CAGR of 13.5% during the 2023-2030 period.
Such growth trends should boost Huntington Ingalls along with other defense primes like Huntington Ingalls (HII - Free Report) , General Dynamics (GD - Free Report) and Lockheed Martin (LMT - Free Report) , which have a strong presence in the unmanned underwater vehicle market.
Serving customers in more than 30 countries, Huntington Ingalls provides design, autonomy, manufacturing, testing, operations and sustainment of unmanned systems, including UUVs and unmanned surface vessels. Its REMUS family of UUVs consists of low logistics UUVs that can be rapidly deployed from any vessel of opportunity, with their common usage in mine countermeasures, search and recovery and antisubmarine warfare.
Huntington Ingalls’ long-term earnings growth rate is 6.6%. The Zacks consensus estimate for HII’s 2023 sales indicates an improvement of 3.5% from the 2022 reported figure.
General Dynamics’ Bluefin SandShark is a one-person-portable, low-cost, autonomous unmanned underwater vehicle designed to leverage today’s miniaturized sensors and emerge as the development platform for the next generation.
General Dynamics boasts a long-term earnings growth rate of 9.2%. GD shares have rallied 7.3% in the past year.
Lockheed has more than four decades of experience developing unmanned and robotic systems for the sea. LMT’s Marlin autonomous underwater vehicle system offers a range of civilian and military customers with a quick and safe way to conduct subsea surveys and inspections.
Lockheed’s long-term earnings growth rate is 8.4%. LMT shares have risen 11.5% in the past year.
Price Movement
Shares of BA have rallied 43.7% in the past year compared with the industry’s rise of 2.1%.
Image: Bigstock
Boeing (BA) Wins Deal to Support Unmanned Undersea Vehicles
The Boeing Company (BA - Free Report) recently clinched a modification contract to provide engineering support for the Extra Large Unmanned Undersea Vehicle (“XLUUV”). The award has been offered by the Naval Sea Systems Command, Washington, D.C.
Valued at $10.6 million, the contract is expected to be completed by September 2024. The majority of the work related to this deal will be carried out in Huntington Beach, CA.
What’s Supporting Boeing?
For 100 years, Boeing has been leading unmanned technology innovation and integration from sea to air to space.
Boeing’s Echo Voyager is a fully autonomous XLUUV-class Unmanned Undersea Vehicle (“UUV”) that can be used for various missions, which were previously impossible due to traditional UUV limitations. The vehicle’s advanced autonomy enables it to perform at sea for months at a time, delivering a more affordable, mission-capable solution over traditional UUVs.
Prior to Echo Voyager, Boeing developed Echo Seeker and Echo Ranger, autonomous and large UUVs as test beds for its current XLUUV.
The aforementioned discussion reflects the proven expertise of BA in the UUV space. This is likely to have led to a steady inflow of contracts for the company, like the latest one. This, in turn, should bolster its revenue generation prospects from the UUV product line.
Growth Prospects
The recent tiff between Ukraine and Russia has led other nations to strengthen their defense landscape to deter any war-like situation. UUVs are noted for their ability to carry out dangerous maritime operations, such as mine countermeasure missions and harbor patrol. Therefore, as investments in undersea warfare capabilities have increased manifold, so has the demand for state-of-the-art UUVs. Long-endurance, autonomous maritime vehicles offer new ways to gather data and conduct missions in the ocean and communicate across domains to deliver actionable intelligence.
With technological advancements, nations are more rapidly adopting artificial intelligence and machine learning technologies to increase the autonomy of UUVs. As a result, hefty investments in developing and acquiring autonomous marine systems can be expected in the coming days, thereby boosting the UUV market. To this end, the Fortune Business Insights firm projects the global unmanned underwater vehicle market to witness a CAGR of 13.5% during the 2023-2030 period.
Such growth trends should boost Huntington Ingalls along with other defense primes like Huntington Ingalls (HII - Free Report) , General Dynamics (GD - Free Report) and Lockheed Martin (LMT - Free Report) , which have a strong presence in the unmanned underwater vehicle market.
Serving customers in more than 30 countries, Huntington Ingalls provides design, autonomy, manufacturing, testing, operations and sustainment of unmanned systems, including UUVs and unmanned surface vessels. Its REMUS family of UUVs consists of low logistics UUVs that can be rapidly deployed from any vessel of opportunity, with their common usage in mine countermeasures, search and recovery and antisubmarine warfare.
Huntington Ingalls’ long-term earnings growth rate is 6.6%. The Zacks consensus estimate for HII’s 2023 sales indicates an improvement of 3.5% from the 2022 reported figure.
General Dynamics’ Bluefin SandShark is a one-person-portable, low-cost, autonomous unmanned underwater vehicle designed to leverage today’s miniaturized sensors and emerge as the development platform for the next generation.
General Dynamics boasts a long-term earnings growth rate of 9.2%. GD shares have rallied 7.3% in the past year.
Lockheed has more than four decades of experience developing unmanned and robotic systems for the sea. LMT’s Marlin autonomous underwater vehicle system offers a range of civilian and military customers with a quick and safe way to conduct subsea surveys and inspections.
Lockheed’s long-term earnings growth rate is 8.4%. LMT shares have risen 11.5% in the past year.
Price Movement
Shares of BA have rallied 43.7% in the past year compared with the industry’s rise of 2.1%.
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.