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Boeing Wins a $251M Contract for KC-135 Refueling Tanker Aircraft
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The Boeing Company (BA - Free Report) recently secured a modification contract worth $251.4 million for the production of fan duct transactional spares for KC-135 aerial refueling tanker aircraft. The award has been offered by the Defense Logistics Agency Aviation, Tinker Air Force Base, OK.
Significance of BA’s KC-135
Boeing’s KC-135 Stratotanker is an aerial refueling aircraft that provides core aerial refueling capability for the U.S. Air Force and has excelled in this role for more than 60 years.
The KC-135 is also capable of transporting litter and ambulatory patients using patient support pallets during aeromedical evacuations. Over the years, this aircraft has been altered to perform a variety of operations ranging from flying command post missions to reconnaissance.
BA’s Place in Military Aviation Market
Apart from holding a lion's share of the commercial aviation industry along with Airbus, Boeing is a renowned manufacturer of combat aircraft. Its Defense, Space & Security business segment engages in the research, development, production and modification of manned and unmanned military aircraft as well as commercial derivative aircraft, including anti-submarine and tanker aircraft.
Some of its renowned combat-proven jets are the C-17 Globemaster III, F/A-18 Super Hornet, EA-18G Growler, P-8 and F-15EX. The dominant position that Boeing enjoys in the aerial defense space, particularly in the United States, can be gauged from the fact that it has always been the primary aircraft supplier for the nation’s Air Force One program. Impressively, once Boeing 747-8 takes flight as the next Air Force One, its airplanes will mark more than half a century of U.S. presidential service.
Growth Prospects for BA Stock
In recent times, rapidly increasing hostilities worldwide, especially the unrest witnessed in different parts of the Middles East, along with the rising complexity of warfare as well as technological advancements in arms and ammunition, have prompted nations across the globe to significantly boost their defense structure in the form of increased investments in military products. Since aerial security plays a critical role in defending a nation’s border from unprecedented attacks, demand for state-of-the-art, agile, combat-proven aircraft has been on the rise.
As modern military strategies emphasize rapid deployment, long-range strike capabilities and sustained air patrols, advanced refueling support offered by multi-role refueling tanker jets like KC-135 remains the need of the hour. The latest contract win by Boeing is a bright example of that.
To this end, the Mordor Intelligence firm predicts that the global military aviation market will witness a CAGR of 5.2% in the 2024-2029 period. These projections indicate significant growth opportunities for leading combat jet manufacturers like Boeing.
Notably, Boeing’s Defense, Space & Security business segment ended the second quarter of 2024 with a backlog count of $59.06 billion, which reflects solid revenue generation prospects for this unit in the near future.
Opportunities for BA’s Peers
Other aerospace companies that are likely to reap the benefits of the expanding global military aviation market are as follows:
Northrop Grumman Corp. (NOC - Free Report) : The company is a leading provider of manned and unmanned combat aircraft. NOC builds some of the world’s most advanced military jets like the E-2C Hawkeye 2000, A-10 Thunderbolt II, F-5 Tiger Fighter Jet and many more.
Northrop has a long-term (three to five years) earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales calls for an improvement of 5.4% from the prior-year reported figure.
Embraer S.A. (ERJ - Free Report) : The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.
Embraer delivered an average earnings surprise of 52.28% in the trailing four quarters. The Zacks Consensus Estimate for ERJ’s 2024 sales implies an improvement of 19.1% from the prior-year reported figure.
Lockheed Martin Corp. (LMT - Free Report) : The company is a prominent forerunner in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like the F-35 Lightning II, C-130 J Super Hercules, F-16 Fighting Falcon and a few more.
Lockheed Martin boasts long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates an improvement of 5.3% from the prior-year reported figure.
BA Stock’s Price Movement
In the past year, shares of Boeing have lost 18.1% against the industry’s growth of 19.3%.
Image: Bigstock
Boeing Wins a $251M Contract for KC-135 Refueling Tanker Aircraft
The Boeing Company (BA - Free Report) recently secured a modification contract worth $251.4 million for the production of fan duct transactional spares for KC-135 aerial refueling tanker aircraft. The award has been offered by the Defense Logistics Agency Aviation, Tinker Air Force Base, OK.
Significance of BA’s KC-135
Boeing’s KC-135 Stratotanker is an aerial refueling aircraft that provides core aerial refueling capability for the U.S. Air Force and has excelled in this role for more than 60 years.
The KC-135 is also capable of transporting litter and ambulatory patients using patient support pallets during aeromedical evacuations. Over the years, this aircraft has been altered to perform a variety of operations ranging from flying command post missions to reconnaissance.
BA’s Place in Military Aviation Market
Apart from holding a lion's share of the commercial aviation industry along with Airbus, Boeing is a renowned manufacturer of combat aircraft. Its Defense, Space & Security business segment engages in the research, development, production and modification of manned and unmanned military aircraft as well as commercial derivative aircraft, including anti-submarine and tanker aircraft.
Some of its renowned combat-proven jets are the C-17 Globemaster III, F/A-18 Super Hornet, EA-18G Growler, P-8 and F-15EX. The dominant position that Boeing enjoys in the aerial defense space, particularly in the United States, can be gauged from the fact that it has always been the primary aircraft supplier for the nation’s Air Force One program. Impressively, once Boeing 747-8 takes flight as the next Air Force One, its airplanes will mark more than half a century of U.S. presidential service.
Growth Prospects for BA Stock
In recent times, rapidly increasing hostilities worldwide, especially the unrest witnessed in different parts of the Middles East, along with the rising complexity of warfare as well as technological advancements in arms and ammunition, have prompted nations across the globe to significantly boost their defense structure in the form of increased investments in military products. Since aerial security plays a critical role in defending a nation’s border from unprecedented attacks, demand for state-of-the-art, agile, combat-proven aircraft has been on the rise.
As modern military strategies emphasize rapid deployment, long-range strike capabilities and sustained air patrols, advanced refueling support offered by multi-role refueling tanker jets like KC-135 remains the need of the hour. The latest contract win by Boeing is a bright example of that.
To this end, the Mordor Intelligence firm predicts that the global military aviation market will witness a CAGR of 5.2% in the 2024-2029 period. These projections indicate significant growth opportunities for leading combat jet manufacturers like Boeing.
Notably, Boeing’s Defense, Space & Security business segment ended the second quarter of 2024 with a backlog count of $59.06 billion, which reflects solid revenue generation prospects for this unit in the near future.
Opportunities for BA’s Peers
Other aerospace companies that are likely to reap the benefits of the expanding global military aviation market are as follows:
Northrop Grumman Corp. (NOC - Free Report) : The company is a leading provider of manned and unmanned combat aircraft. NOC builds some of the world’s most advanced military jets like the E-2C Hawkeye 2000, A-10 Thunderbolt II, F-5 Tiger Fighter Jet and many more.
Northrop has a long-term (three to five years) earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales calls for an improvement of 5.4% from the prior-year reported figure.
Embraer S.A. (ERJ - Free Report) : The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.
Embraer delivered an average earnings surprise of 52.28% in the trailing four quarters. The Zacks Consensus Estimate for ERJ’s 2024 sales implies an improvement of 19.1% from the prior-year reported figure.
Lockheed Martin Corp. (LMT - Free Report) : The company is a prominent forerunner in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like the F-35 Lightning II, C-130 J Super Hercules, F-16 Fighting Falcon and a few more.
Lockheed Martin boasts long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates an improvement of 5.3% from the prior-year reported figure.
BA Stock’s Price Movement
In the past year, shares of Boeing have lost 18.1% against the industry’s growth of 19.3%.
Image Source: Zacks Investment Research
Zacks Rank
Boeing currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.