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Boeing (BA) Wins $264M Contract to Aid F/A-18 E/F and EA-18G Jets
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The Boeing Company (BA - Free Report) recently secured a contract involving its F/A-18 E/F and EA-18G jets. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $264.1 million, the contract is projected to be completed by September 2028. Per the terms of the deal, Boeing will offer inspections, modifications and repairs needed to restore the inner wing panel service life projections in relation to the new design specifications of the F/A-18 E/F and EA-18G aircraft.
A major portion of the work related to this deal will be carried out in Jacksonville, FL.
What’s Favoring Boeing?
Nations worldwide are bolstering their military capabilities to enhance their defense systems amid a growing global threat landscape. As a result, the demand for military aircraft, which are crucial in various military operations, has surged significantly. This trend has led to a robust influx of orders for major combat aircraft manufacturers like Boeing.
In this regard, it's important to highlight the significance of Boeing's F/A-18 Block III Super Hornet, which is capable of performing nearly every mission within the tactical spectrum. These missions include air superiority, day/night strikes with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions.
Additionally, the EA-18G Growler, a variant of the combat-tested F/A-18F, stands out as the most advanced airborne electronic attack (AEA) platform in production today. It offers tactical jamming and electronic protection for U.S. military forces and their allies.
The exceptional capabilities of these jets are likely to contribute to Boeing's steady stream of contracts for their production and parts repair. The latest contract award further underscores this success.
Boeing’s Growth Prospects
The escalation of military conflicts, terrorism, border disputes, and territorial violations has driven nations to increase their defense spending, focusing on acquiring combat-proven aircraft to strengthen aerial security. Coupled with the growing integration of advanced technology to improve the quality and efficiency of modern military jets, this trend has likely influenced the Mordor Intelligence firm to project a CAGR of 3.7% for the global fighter aircraft market between 2024 and 2029.
These projections suggest significant growth opportunities for leading combat jet manufacturers like Boeing. Notably, BA’s Defense, Space & Security division is involved in the research, development, production, and modification of both manned and unmanned military aircraft. The company’s military jet portfolio includes models such as the F-15, P-8, T-7A Red Hawk, and C-17 Globemaster III, in addition to the F/A-18 and E/A-18G aircraft.
Opportunities for Peers
Considering the aforementioned discussion, a few other defense contractors that can also be expected to gain substantially on virtue of their strong presence in the fighter aircraft market are discussed below.
Embraer (ERJ - Free Report) : Its Defense & Security products and solutions are present in more than 60 countries. The company’s product portfolio includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.
The current fleet of KC-390 aircraft in operation has accumulated more than 13,000 flight hours, with operational availability of around 80% and mission completion rates above 99%. In June 2024, Embraer delivered the second KC-390 multi-mission aircraft to the Portuguese Air Force (FAP). This reflects the solid demand that ERJ’s military jets enjoy in the fighter aircraft market.
Lockheed (LMT - Free Report) : One of the pioneers in the combat aircraft space, LMT has been designing and building combat-proven military aircraft for more than 100 years. Its product portfolio comprises some of the most advanced military aircraft like the F-35, C-130J Super Hercules, F-16 Fighting Falcon, F-22 Raptor and a few more.
On Jul 25, 2024, Lockheed announced that Greece has become the newest member of the global alliance for its F-35 jets after finalizing its intention to procure 20 F-35 Lightning II aircraft and an option to procure another 20 jets. This should boost LMT’s revenues on the successful delivery of these jets.
Airbus Group (EADSY - Free Report) : Its military aircraft consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived. For more than 40 years, Airbus has also been providing its customers with an extended portfolio of military aircraft services, ranging from the training of Flight and Ground Crews to live firing exercises anywhere around the world.
Notably, Pacific Skies 24 is the largest-ever air exercise (held jointly by France, Germany and Spain), wherein dozens of fighter jets, transport aircraft and large tankers, most of them made by Airbus, are taking part.
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Boeing (BA) Wins $264M Contract to Aid F/A-18 E/F and EA-18G Jets
The Boeing Company (BA - Free Report) recently secured a contract involving its F/A-18 E/F and EA-18G jets. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $264.1 million, the contract is projected to be completed by September 2028. Per the terms of the deal, Boeing will offer inspections, modifications and repairs needed to restore the inner wing panel service life projections in relation to the new design specifications of the F/A-18 E/F and EA-18G aircraft.
A major portion of the work related to this deal will be carried out in Jacksonville, FL.
What’s Favoring Boeing?
Nations worldwide are bolstering their military capabilities to enhance their defense systems amid a growing global threat landscape. As a result, the demand for military aircraft, which are crucial in various military operations, has surged significantly. This trend has led to a robust influx of orders for major combat aircraft manufacturers like Boeing.
In this regard, it's important to highlight the significance of Boeing's F/A-18 Block III Super Hornet, which is capable of performing nearly every mission within the tactical spectrum. These missions include air superiority, day/night strikes with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions.
Additionally, the EA-18G Growler, a variant of the combat-tested F/A-18F, stands out as the most advanced airborne electronic attack (AEA) platform in production today. It offers tactical jamming and electronic protection for U.S. military forces and their allies.
The exceptional capabilities of these jets are likely to contribute to Boeing's steady stream of contracts for their production and parts repair. The latest contract award further underscores this success.
Boeing’s Growth Prospects
The escalation of military conflicts, terrorism, border disputes, and territorial violations has driven nations to increase their defense spending, focusing on acquiring combat-proven aircraft to strengthen aerial security. Coupled with the growing integration of advanced technology to improve the quality and efficiency of modern military jets, this trend has likely influenced the Mordor Intelligence firm to project a CAGR of 3.7% for the global fighter aircraft market between 2024 and 2029.
These projections suggest significant growth opportunities for leading combat jet manufacturers like Boeing. Notably, BA’s Defense, Space & Security division is involved in the research, development, production, and modification of both manned and unmanned military aircraft. The company’s military jet portfolio includes models such as the F-15, P-8, T-7A Red Hawk, and C-17 Globemaster III, in addition to the F/A-18 and E/A-18G aircraft.
Opportunities for Peers
Considering the aforementioned discussion, a few other defense contractors that can also be expected to gain substantially on virtue of their strong presence in the fighter aircraft market are discussed below.
Embraer (ERJ - Free Report) : Its Defense & Security products and solutions are present in more than 60 countries. The company’s product portfolio includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.
The current fleet of KC-390 aircraft in operation has accumulated more than 13,000 flight hours, with operational availability of around 80% and mission completion rates above 99%. In June 2024, Embraer delivered the second KC-390 multi-mission aircraft to the Portuguese Air Force (FAP). This reflects the solid demand that ERJ’s military jets enjoy in the fighter aircraft market.
Lockheed (LMT - Free Report) : One of the pioneers in the combat aircraft space, LMT has been designing and building combat-proven military aircraft for more than 100 years. Its product portfolio comprises some of the most advanced military aircraft like the F-35, C-130J Super Hercules, F-16 Fighting Falcon, F-22 Raptor and a few more.
On Jul 25, 2024, Lockheed announced that Greece has become the newest member of the global alliance for its F-35 jets after finalizing its intention to procure 20 F-35 Lightning II aircraft and an option to procure another 20 jets. This should boost LMT’s revenues on the successful delivery of these jets.
Airbus Group (EADSY - Free Report) : Its military aircraft consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived. For more than 40 years, Airbus has also been providing its customers with an extended portfolio of military aircraft services, ranging from the training of Flight and Ground Crews to live firing exercises anywhere around the world.
Notably, Pacific Skies 24 is the largest-ever air exercise (held jointly by France, Germany and Spain), wherein dozens of fighter jets, transport aircraft and large tankers, most of them made by Airbus, are taking part.