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Northrop Grumman Secures a Contract to Support SEWIP Block 3 System
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Northrop Grumman Corporation (NOC - Free Report) recently secured a modification contract valued at $43.2 million to support the Surface Electronic Warfare Improvement Program (SEWIP) Block 3 system, which focuses on enhancing the U.S. Navy's electronic warfare (EW) capabilities. The award entails NOC providing item spares and engineering change kits necessary to support the production of advanced SEWIP hemisphere systems.
The award has been provided by the Naval Sea Systems Command, Washington, D.C. The work under this contract will be executed across various locations, with significant contributions from Baltimore, MD. The project is expected to be completed by February 2027.
What’s Favoring NOC?
With countries worldwide enhancing their defense capabilities, spending on advanced military systems, including electronic warfare technologies, has been rapidly rising. To this end, it is imperative to mention that NOC is a renowned provider of EW solutions, offering critical system upgrades across various platforms. As a result, the company continues to receive a steady flow of contracts for its advanced EW systems from the Pentagon and U.S. allies, with the latest contract win being a prime example.
Notably, NOC’s SEWIP Block 3 enables U.S. Navy ships to defend themselves from anti-ship missiles by providing early detection, signal analysis and threat warning. It is an upgraded version of its legacy AN/SLQ-32 EW system.
Such notable features of the aforementioned EW solutions of NOC are likely to have been boosting their demand, which is further evident from the latest contract win.
NOC’s Growth Prospects
Rising military conflicts, terrorism and border disputes have driven nations across the globe to focus more on national security, with investments in enhancing their EW capabilities. This surge is driven by the increasing demand for advanced technologies like electronic countermeasures, radar jamming systems and signal intelligence as well as the rising complexity of modern warfare.
This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 5.1% for the global electronic warfare market during the 2024-2029 time period.
This is likely to benefit NOC, a prominent forerunner in the electronic warfare market, with a proven track record of delivering critical capabilities to military operations worldwide. The company’s extensive product portfolio includes advanced EW systems like the ALQ-251 EW System, which provides electronic countermeasures for helicopters, and the AN/ALQ-131 Pod, which offers radar jamming protection for aircraft.
Prospects for NOC’s Peers
Other defense companies that are likely to enjoy the perks of the expanding global electronic warfare market have been discussed below.
RTX Corporation (RTX - Free Report) : It invests heavily in electronic warfare systems. It offers the Next Generation Jammer for EA-18G Growler fighter aircraft. It boasts the capability of attacking multiple targets simultaneously.
The company’s long-term (three to five years) earnings growth rate is 10.4%. The Zacks Consensus Estimate for RTX’s 2024 sales indicates year-over-year growth of 7%.
General Dynamics Corporation (GD - Free Report) : It has a significant focus on electronic warfare solutions. Its Tactical Electronic Warfare System enables soldiers to detect, locate and identify the enemy while denying, disrupting and degrading the enemy’s ability to communicate, coordinate and synchronize.
The company’s long-term earnings growth rate is 12.6%. The consensus estimate for GD’s 2024 sales indicates year-over-year growth of 13.5%.
L3Harris Technologies (LHX - Free Report) : It is a key player in the electronic warfare market, focusing on systems that provide real-time situational awareness and threat detection. Its Viper Shield EW Suite offers integrated radar and electronic attack capabilities. The company is also involved in developing WESCAM MX-Series EO/IR systems, which provide targeting and surveillance capabilities.
The company’s long-term earnings growth rate is 8.9%. The Zacks Consensus Estimate for LHX’s 2024 sales indicates year-over-year growth of 9.6%.
NOC Stock Price Movement
Shares of NOC have gained 26.5% in the past three months compared with the industry’s 10% growth.
Image: Bigstock
Northrop Grumman Secures a Contract to Support SEWIP Block 3 System
Northrop Grumman Corporation (NOC - Free Report) recently secured a modification contract valued at $43.2 million to support the Surface Electronic Warfare Improvement Program (SEWIP) Block 3 system, which focuses on enhancing the U.S. Navy's electronic warfare (EW) capabilities. The award entails NOC providing item spares and engineering change kits necessary to support the production of advanced SEWIP hemisphere systems.
The award has been provided by the Naval Sea Systems Command, Washington, D.C. The work under this contract will be executed across various locations, with significant contributions from Baltimore, MD. The project is expected to be completed by February 2027.
What’s Favoring NOC?
With countries worldwide enhancing their defense capabilities, spending on advanced military systems, including electronic warfare technologies, has been rapidly rising. To this end, it is imperative to mention that NOC is a renowned provider of EW solutions, offering critical system upgrades across various platforms. As a result, the company continues to receive a steady flow of contracts for its advanced EW systems from the Pentagon and U.S. allies, with the latest contract win being a prime example.
Notably, NOC’s SEWIP Block 3 enables U.S. Navy ships to defend themselves from anti-ship missiles by providing early detection, signal analysis and threat warning. It is an upgraded version of its legacy AN/SLQ-32 EW system.
Such notable features of the aforementioned EW solutions of NOC are likely to have been boosting their demand, which is further evident from the latest contract win.
NOC’s Growth Prospects
Rising military conflicts, terrorism and border disputes have driven nations across the globe to focus more on national security, with investments in enhancing their EW capabilities. This surge is driven by the increasing demand for advanced technologies like electronic countermeasures, radar jamming systems and signal intelligence as well as the rising complexity of modern warfare.
This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 5.1% for the global electronic warfare market during the 2024-2029 time period.
This is likely to benefit NOC, a prominent forerunner in the electronic warfare market, with a proven track record of delivering critical capabilities to military operations worldwide. The company’s extensive product portfolio includes advanced EW systems like the ALQ-251 EW System, which provides electronic countermeasures for helicopters, and the AN/ALQ-131 Pod, which offers radar jamming protection for aircraft.
Prospects for NOC’s Peers
Other defense companies that are likely to enjoy the perks of the expanding global electronic warfare market have been discussed below.
RTX Corporation (RTX - Free Report) : It invests heavily in electronic warfare systems. It offers the Next Generation Jammer for EA-18G Growler fighter aircraft. It boasts the capability of attacking multiple targets simultaneously.
The company’s long-term (three to five years) earnings growth rate is 10.4%. The Zacks Consensus Estimate for RTX’s 2024 sales indicates year-over-year growth of 7%.
General Dynamics Corporation (GD - Free Report) : It has a significant focus on electronic warfare solutions. Its Tactical Electronic Warfare System enables soldiers to detect, locate and identify the enemy while denying, disrupting and degrading the enemy’s ability to communicate, coordinate and synchronize.
The company’s long-term earnings growth rate is 12.6%. The consensus estimate for GD’s 2024 sales indicates year-over-year growth of 13.5%.
L3Harris Technologies (LHX - Free Report) : It is a key player in the electronic warfare market, focusing on systems that provide real-time situational awareness and threat detection. Its Viper Shield EW Suite offers integrated radar and electronic attack capabilities. The company is also involved in developing WESCAM MX-Series EO/IR systems, which provide targeting and surveillance capabilities.
The company’s long-term earnings growth rate is 8.9%. The Zacks Consensus Estimate for LHX’s 2024 sales indicates year-over-year growth of 9.6%.
NOC Stock Price Movement
Shares of NOC have gained 26.5% in the past three months compared with the industry’s 10% growth.
Image Source: Zacks Investment Research
NOC’s Zacks Rank
NOC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.