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Boeing Clinches a $450M Contract to Support the F-15 JSI Program
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The Boeing Company (BA - Free Report) recently secured a contract to incorporate the production of command and control (C2) capabilities for the F-15 Japan Super Interceptor (JSI) Program. The award was provided by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Valued at $450 million, the contract is expected to be completed by February 2030. Per the terms of the deal, Boeing will provide for the acquisition of radars, self-protection systems and mission computer units for the F-15 JSI program.
What’s Favoring BA in Japan?
Growing threats in the Indo-Pacific, such as hypersonic, long-range missiles and advanced early warning systems detecting stealth aircraft, have underscored the need for Japan to modernize its air defense capabilities. Boeing’s F-15, renowned for its exceptional speed, range and payload capacity, emerges as an optimal solution to address these challenges. As one of the world’s fastest and most versatile fighters, it is uniquely equipped to deter and neutralize evolving threats in the region.
The F-15’s advanced radar systems, superior data-link technology and enhanced weaponry further solidify its role in ensuring air dominance. For over 70 years, Boeing has collaborated with Japan to develop innovative aerospace solutions, reflecting the strong alliance between the two nations.
This longstanding partnership has been instrumental in enhancing Japan’s aerial security. The recent contract for the F-15 Japan Super Interceptor Program highlights Boeing’s critical role in safeguarding the region.
What Lies Ahead for BA Stock?
Emerging geopolitical threats are driving nations worldwide to boost defense spending, and Japan is no exception. The country’s Ministry of Defense has requested a $59.76 billion budget for fiscal 2025, a 7.5% increase from the current year, positioning Japan as the world’s third-largest defense spender by 2027, following the United States and China (as per the Morder Intelligence firm).
Japan’s robust defense investment strategy bodes well for Boeing, given its strong presence in the country. Notably, the Japanese Self-Defense Forces operate the largest fleets of Boeing F-15 fighters and CH-47 Chinook helicopters outside the United States. Additionally, Japan became the first international customer for Boeing’s KC-46A Pegasus tanker in 2015. These partnerships highlight Boeing’s integral role in Japan’s defense modernization.
Other Defense Stocks to Benefit
Defense stocks other than Boeing that have a strong presence in Japan are also expected to benefit from the expanding defense investment in the country.
RTX Corp. (RTX - Free Report) : Its APG-82(V)1 AESA radar is integrated into the F-15 JSI program, which is powered by the F-100 engine, manufactured by RTX’s Pratt &Whitney. In 2024, RTX’s Raytheon began full-rate production of Standard Missile-3 Block IIA, which marked the first Missile Defense Agency cooperative development program with Japan.
RTX boasts a long-term (three to five years) earnings growth rate of 10.2%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 7.2%.
BAE Systems (BAESY - Free Report) : Its AN/ALQ-250 Eagle Passive Warning Survivability Systems is being installed in Japan’s F-15 super interceptor jets. Boeing has also selected the company to upgrade the F-15 super interceptor jets' fly-by-wire flight control computers.
BAESY boasts a long-term earnings growth rate of 11.1%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 37.7%.
Lockheed Martin (LMT - Free Report) : It delivers advanced technologies to bolster Japan’s defense capabilities. Over 550 of LMT’s military helicopters have been produced for Japan’s Self-Defense Forces. For 25 years, Lockheed’s Aegis Combat System has enhanced threat detection across the sea, air, and undersea domains, equipping Japan’s Kongo and Atago-class ships with cutting-edge defense solutions.
LMT boasts a long-term earnings growth rate of 4.5%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 5.5%.
BA Stock’s Price Movement
Shares of BA have gained 6% in the past three months against the industry’s 9.7% decline.
Image Source: Zacks Investment Research
BA’s Zacks Rank
BA currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Boeing Clinches a $450M Contract to Support the F-15 JSI Program
The Boeing Company (BA - Free Report) recently secured a contract to incorporate the production of command and control (C2) capabilities for the F-15 Japan Super Interceptor (JSI) Program. The award was provided by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Valued at $450 million, the contract is expected to be completed by February 2030. Per the terms of the deal, Boeing will provide for the acquisition of radars, self-protection systems and mission computer units for the F-15 JSI program.
What’s Favoring BA in Japan?
Growing threats in the Indo-Pacific, such as hypersonic, long-range missiles and advanced early warning systems detecting stealth aircraft, have underscored the need for Japan to modernize its air defense capabilities. Boeing’s F-15, renowned for its exceptional speed, range and payload capacity, emerges as an optimal solution to address these challenges. As one of the world’s fastest and most versatile fighters, it is uniquely equipped to deter and neutralize evolving threats in the region.
The F-15’s advanced radar systems, superior data-link technology and enhanced weaponry further solidify its role in ensuring air dominance. For over 70 years, Boeing has collaborated with Japan to develop innovative aerospace solutions, reflecting the strong alliance between the two nations.
This longstanding partnership has been instrumental in enhancing Japan’s aerial security. The recent contract for the F-15 Japan Super Interceptor Program highlights Boeing’s critical role in safeguarding the region.
What Lies Ahead for BA Stock?
Emerging geopolitical threats are driving nations worldwide to boost defense spending, and Japan is no exception. The country’s Ministry of Defense has requested a $59.76 billion budget for fiscal 2025, a 7.5% increase from the current year, positioning Japan as the world’s third-largest defense spender by 2027, following the United States and China (as per the Morder Intelligence firm).
Japan’s robust defense investment strategy bodes well for Boeing, given its strong presence in the country. Notably, the Japanese Self-Defense Forces operate the largest fleets of Boeing F-15 fighters and CH-47 Chinook helicopters outside the United States. Additionally, Japan became the first international customer for Boeing’s KC-46A Pegasus tanker in 2015. These partnerships highlight Boeing’s integral role in Japan’s defense modernization.
Other Defense Stocks to Benefit
Defense stocks other than Boeing that have a strong presence in Japan are also expected to benefit from the expanding defense investment in the country.
RTX Corp. (RTX - Free Report) : Its APG-82(V)1 AESA radar is integrated into the F-15 JSI program, which is powered by the F-100 engine, manufactured by RTX’s Pratt &Whitney. In 2024, RTX’s Raytheon began full-rate production of Standard Missile-3 Block IIA, which marked the first Missile Defense Agency cooperative development program with Japan.
RTX boasts a long-term (three to five years) earnings growth rate of 10.2%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 7.2%.
BAE Systems (BAESY - Free Report) : Its AN/ALQ-250 Eagle Passive Warning Survivability Systems is being installed in Japan’s F-15 super interceptor jets. Boeing has also selected the company to upgrade the F-15 super interceptor jets' fly-by-wire flight control computers.
BAESY boasts a long-term earnings growth rate of 11.1%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 37.7%.
Lockheed Martin (LMT - Free Report) : It delivers advanced technologies to bolster Japan’s defense capabilities. Over 550 of LMT’s military helicopters have been produced for Japan’s Self-Defense Forces. For 25 years, Lockheed’s Aegis Combat System has enhanced threat detection across the sea, air, and undersea domains, equipping Japan’s Kongo and Atago-class ships with cutting-edge defense solutions.
LMT boasts a long-term earnings growth rate of 4.5%. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 5.5%.
BA Stock’s Price Movement
Shares of BA have gained 6% in the past three months against the industry’s 9.7% decline.
Image Source: Zacks Investment Research
BA’s Zacks Rank
BA currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.