L3 Technologies, Inc.’s business unit, Vertex Aerospace, has won a contract from the U.S. Navy to provide depot level maintenance, logistics, and sustaining engineering services for the C-12 utility lift aircraft for the Navy and Marine Corps.
Details of the Deal
The contract is valued at $202.2 million and is awarded by the Naval Air Systems Command, Patuxent River, MD.
Per the contract, L3 Technologies will provide services including maintenance of site support, aircraft depot and engine depot. Additionally, it will cover modifications of aircraft and aircraft systems, potential site stand-ups and closures.
Work is scheduled to be completed by Jul 2022. Majority of the work will be performed in San Angelo, TX; while the rest will be executed in various locations throughout the U.S., Cuba and Japan.
A Brief Note on C-12 Aircraft
Modeled on Beechcraft Super King Air, C-12 Huron is the military version of an executive passenger and transport aircraft. It is mainly used by the U.S. Air Force, U.S. Navy, U.S. Army and U.S. Marine Corps for a wide array of functions including range clearance, embassy support, medical evacuation, VIP transport, passenger and light cargo transport.
C-12 Huron features a twin-engine turboprop and can carry a maximum of two crew along with 13 passengers or 5,000lb of cargo. This aircraft is manufactured by Raytheon Aircraft Corporation (RAC), a division of Raytheon Company .
Also, it is equipped with Rockwell Collins Inc.’s avionics, including Collins WXR-850 weather radar, traffic collision alert and avoidance systems (TCAAS) and an integrated avionics processor system (IAPS). Currently, over 300 aircraft are in service with the U.S. armed forces.
Why L3 Technologies?
L-3 Technologies is one of the prime system contractors for aircraft modernization and maintenance; Intelligence, Surveillance & Reconnaissance (“ISR”) collection platforms; simulation and training; and government systems support services. In fact, it has also been awarded contract to provide support services for the C-12 aircraft even last year.
Further, the company is a pure-play provider of defense electronics and highly engineered products and services. Moving ahead, it anticipates to gradually transform its business portfolio to focus on defense electronics, communications and ISR markets leading to boost in sales and margins.
Price Movement
L3 Technologies’ stock gained 38.9% in the last one year, outperforming the Zacks categorized Electronics-Military Systems industry’s gain of 30.2%. This upside was mainly backed by major contract wins from the Pentagon. The company also offers tough competition to peer ?? FLIR Systems, Inc. .
Zacks Rank
L-3 Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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L3 Technologies Wins $202M Navy Deal for Support Services
L3 Technologies, Inc.’s business unit, Vertex Aerospace, has won a contract from the U.S. Navy to provide depot level maintenance, logistics, and sustaining engineering services for the C-12 utility lift aircraft for the Navy and Marine Corps.
Details of the Deal
The contract is valued at $202.2 million and is awarded by the Naval Air Systems Command, Patuxent River, MD.
Per the contract, L3 Technologies will provide services including maintenance of site support, aircraft depot and engine depot. Additionally, it will cover modifications of aircraft and aircraft systems, potential site stand-ups and closures.
Work is scheduled to be completed by Jul 2022. Majority of the work will be performed in San Angelo, TX; while the rest will be executed in various locations throughout the U.S., Cuba and Japan.
A Brief Note on C-12 Aircraft
Modeled on Beechcraft Super King Air, C-12 Huron is the military version of an executive passenger and transport aircraft. It is mainly used by the U.S. Air Force, U.S. Navy, U.S. Army and U.S. Marine Corps for a wide array of functions including range clearance, embassy support, medical evacuation, VIP transport, passenger and light cargo transport.
C-12 Huron features a twin-engine turboprop and can carry a maximum of two crew along with 13 passengers or 5,000lb of cargo. This aircraft is manufactured by Raytheon Aircraft Corporation (RAC), a division of Raytheon Company .
Also, it is equipped with Rockwell Collins Inc.’s avionics, including Collins WXR-850 weather radar, traffic collision alert and avoidance systems (TCAAS) and an integrated avionics processor system (IAPS). Currently, over 300 aircraft are in service with the U.S. armed forces.
Why L3 Technologies?
L-3 Technologies is one of the prime system contractors for aircraft modernization and maintenance; Intelligence, Surveillance & Reconnaissance (“ISR”) collection platforms; simulation and training; and government systems support services. In fact, it has also been awarded contract to provide support services for the C-12 aircraft even last year.
Further, the company is a pure-play provider of defense electronics and highly engineered products and services. Moving ahead, it anticipates to gradually transform its business portfolio to focus on defense electronics, communications and ISR markets leading to boost in sales and margins.
Price Movement
L3 Technologies’ stock gained 38.9% in the last one year, outperforming the Zacks categorized Electronics-Military Systems industry’s gain of 30.2%. This upside was mainly backed by major contract wins from the Pentagon. The company also offers tough competition to peer ?? FLIR Systems, Inc. .
Zacks Rank
L-3 Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>