We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Textron Wins $98M Material Delivery Deal for SSC Program
Read MoreHide Full Article
Textron Inc. (TXT - Free Report) recently secured a $98-million modification contract for procuring additional long-lead-time material (“LLTM”) for the Ship-to-Shore Connector (“SSC”) program and providing pre-fabrication activities for the Landing Craft Air Cushion (LCAC) program. The contract was awarded by the Naval Sea Systems Command, Washington, DC.
Work related to the deal will be performed in New Orleans, LA; Cincinnati, OH and various other locations across the United States. The entire task related to the contract is expected to get completed by December 2021. Textron will utilize fiscal 2017 shipbuilding and conversion (Navy), and fiscal 2018 shipbuilding and conversion (Navy) funds for performing the task.
A Brief Note on Textron’s SSC and LCAC Program
The SSC is an air cushion vehicle and the functional replacement for the existing fleet of vehicles, which are nearing the end of their service life. The SSC’s mission is to land surface assault elements in support of operational maneuver from the sea at over-the-horizon distances, while operating from amphibious ships and mobile landing platforms.
The LCAC is a high-speed, over-the-beach, fully amphibious landing craft capable of traversing snow, marsh, ice, tundra and sand. The LCAC is designed to function in extreme conditions, from Arctic cold to Sahara heat, on missions ranging from transporting cargo to minesweeping.
Our View
Textron’s Marine and Land Systems unit develops the U.S. Navy’s next generation Landing Craft Air Cushion as part of the SSC program. Interestingly, this also is Marine and Land Systems’ primary U.S. Government program. So, no doubt, this program enjoys a strong demand in the U.S. defense space, which, in turn, is likely to boost Textron’s top line.
It is imperative to mention here that Marine and Land Systems unit has been witnessing top line deceleration recently, owing to lower deliveries for Tactical-Armoured Patrol Vehicle (TAPV). Now, the latest contract win should enable this unit to make a rebound and register positive revenue growth in the third quarter of 2018.
Moreover, in June, the U.S. Senate approved the fiscal 2019 defense budget of $717 billion, reflecting 5% real growth more than the initial fiscal 2018 budget. Textron, being one of the prominent defense contractors in the United States, will benefit from such a budgetary amendment.
Other companies from the same space like Lockheed Martin (LMT - Free Report) , General Dynamics (GD - Free Report) and The Boeing Company (BA - Free Report) are also expected to gain significantly from this budget revision.
What Lies Ahead?
Per Technavio, the global amphibious landing craft market is expected to generate more than $10 billion in revenues by 2020. Such growth can be attributed to the increased use of air cushion technology being employed in landing crafts due of its numerous benefits in civil and military applications, in recent years. This, in turn, should enable Textron to significantly grow in the expanding market, going ahead.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Textron Wins $98M Material Delivery Deal for SSC Program
Textron Inc. (TXT - Free Report) recently secured a $98-million modification contract for procuring additional long-lead-time material (“LLTM”) for the Ship-to-Shore Connector (“SSC”) program and providing pre-fabrication activities for the Landing Craft Air Cushion (LCAC) program. The contract was awarded by the Naval Sea Systems Command, Washington, DC.
Work related to the deal will be performed in New Orleans, LA; Cincinnati, OH and various other locations across the United States. The entire task related to the contract is expected to get completed by December 2021. Textron will utilize fiscal 2017 shipbuilding and conversion (Navy), and fiscal 2018 shipbuilding and conversion (Navy) funds for performing the task.
A Brief Note on Textron’s SSC and LCAC Program
The SSC is an air cushion vehicle and the functional replacement for the existing fleet of vehicles, which are nearing the end of their service life. The SSC’s mission is to land surface assault elements in support of operational maneuver from the sea at over-the-horizon distances, while operating from amphibious ships and mobile landing platforms.
The LCAC is a high-speed, over-the-beach, fully amphibious landing craft capable of traversing snow, marsh, ice, tundra and sand. The LCAC is designed to function in extreme conditions, from Arctic cold to Sahara heat, on missions ranging from transporting cargo to minesweeping.
Our View
Textron’s Marine and Land Systems unit develops the U.S. Navy’s next generation Landing Craft Air Cushion as part of the SSC program. Interestingly, this also is Marine and Land Systems’ primary U.S. Government program. So, no doubt, this program enjoys a strong demand in the U.S. defense space, which, in turn, is likely to boost Textron’s top line.
It is imperative to mention here that Marine and Land Systems unit has been witnessing top line deceleration recently, owing to lower deliveries for Tactical-Armoured Patrol Vehicle (TAPV). Now, the latest contract win should enable this unit to make a rebound and register positive revenue growth in the third quarter of 2018.
Moreover, in June, the U.S. Senate approved the fiscal 2019 defense budget of $717 billion, reflecting 5% real growth more than the initial fiscal 2018 budget. Textron, being one of the prominent defense contractors in the United States, will benefit from such a budgetary amendment.
Other companies from the same space like Lockheed Martin (LMT - Free Report) , General Dynamics (GD - Free Report) and The Boeing Company (BA - Free Report) are also expected to gain significantly from this budget revision.
What Lies Ahead?
Per Technavio, the global amphibious landing craft market is expected to generate more than $10 billion in revenues by 2020. Such growth can be attributed to the increased use of air cushion technology being employed in landing crafts due of its numerous benefits in civil and military applications, in recent years. This, in turn, should enable Textron to significantly grow in the expanding market, going ahead.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>