Back to top

Image: Bigstock

L3Harris Wins $587M Contract for Next Generation Jammer-Low Band

Read MoreHide Full Article

L3Harris Technologies (LHX - Free Report) announced that it has received a five-year contract, worth $587.4 million, to deliver custom tactical jamming pods designed to modernize the U.S. Navy’s Aerial Electronic Attack capability.

Details of LHX’s New Contract

The Next Generation Jammer-Low Band (NGJ-LB) is an advanced airborne electronic warfare system. The L3Harris solution will be simpler to maintain than the Navy's present system because of its modular, open-system architecture, which allows for seamless updates.

It also combines enhanced processing with greater jamming capability. The L3Harris system will work with combined and allied forces to offer expansion potential for future technological integration.

Over the course of the next five years, the company will provide more test assets for airworthiness and design verification, in addition to eight operational prototype pods for the U.S. Naval Air Systems Command to evaluate the fleet. The Navy intends to replace the outdated AN/ALQ-99 Tactical Jamming System, and the NGJ-LB pods will aid the initiative by flying on the EA-18G Growler.

Benefits of NGJ-LB

With high-power RF jamming, LHX’s NGJ-LB pod transforms the Growler's capacity to carry out its main mission, Suppression of Enemy Air Defense, from standoff ranges. This results in improved lethality and scalability for upcoming technological advancements.

The NGJ-LB helps cover a broad spectrum of frequencies to serve diverse Department of Defense-wide electronic warfare (EW) demands.

The NGJ-LB reduces aircrew workload and cockpit distractions while increasing the number of simultaneous targets that aircrews can attack through high Equivalent, Isotropically Radiated Power and tailored waveforms. The cutting-edge technology of the NGJ-LB significantly improves availability and sustainment while eradicating existing system capability gaps.

Peer Prospects

Along with LHX, other defense companies like RTX Corp. (RTX - Free Report) , Northrop Grumman (NOC - Free Report) and Lockheed Martin (LMT - Free Report) are also set to take advantage of the expanding EW market.

In August 2024, RTX won a contract involving its Next Generation Jammer Mid-Band (NGJ-MB) System. Valued at $27.7 million, the contract is expected to be completed by August 2026. Per the terms of the deal, RTX will be involved in the repair of several components used in the NGJ-MB System employed on the F/A-18 aircraft.

RTX’s long-term (three to five-year) earnings growth rate is 10.42%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 7.7%.

Northrop Grumman has been providing Naval Airborne EW solutions for more than 55 years and is the Airborne Electronic Attack System Integrator for the U.S. Navy warfighter. Some of its EW systems are the ALQ-251 radio frequency countermeasures system and the AN/APR-39 Radar Warning Receiver/Electronic Warfare Management System.

NOC’s long-term earnings growth rate is 8.68%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 7.9%.

LMT provides global ground EW solutions to U.S. forces, as well as partner nations, through a unique next-generation open architecture product platform and open business model.  Its Advanced Off-Board EW program delivers persistent electronic surveillance and attack capability against naval threats like anti-ship missiles.

LMT’s long-term earnings growth rate is 4.67%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 5.3%.

LHX’s Stock Price Performance

In the past six months, shares of LHX have risen 9.9% compared with the industry’s 2.8% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

LHX’s Zacks Rank

LHX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in