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.
Boeing Wins $35M Deal to Support Small Diameter Bomb Program
Read MoreHide Full Article
The Boeing Co. (BA - Free Report) recently secured a modification contract worth $35 million for the integration, sustainment and support of the Small Diameter Bomb (SDB) Increment I miniature munition. The contract was awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, Florida.
Work related to the deal will be carried out in St. Louis, MO and is scheduled to be over by Apr 15, 2029.
The contract involves foreign military sales to Australia, Belgium, Canada, Denmark, Greece, Israel, South Korea, the Netherlands, Spain, Sweden, Turkey and Singapore, with an approved letter of offer and acceptance. Notably, Boeing will utilize fiscal 2015 and 2016 missile procurement and foreign military sales funds to complete the task.
A Brief Note on SDB
Boeing’s SDB is the next generation of low-cost and low collateral-damage precision strike weapons for internal and external carriage. It comes with a range greater than 60 nautical miles. The SDB carriage allows four weapons to be carried in one aircraft weapon station.
These precision weapons are 250-pound class bombs that allow the artillery system to hit targets from significantly longer distances and engage hard-to-reach targets while maintaining the SDB’s flight maneuverability and accuracy.
Currently, SDB is installed externally on F-15E, F-16 Block 30/40/50, Gripen and GR4 Tornado smart stations and is internally integrated in the bays of the F-22A, F-35A and Unmanned Combat Air Vehicles.
Our View
Boeing’s SDB is one of the very few weapon systems of its kind in the munitions market. Being one of the largest defense contractors in the United States, Boeing serves the U.S. aerospace and defense industry and its allies by producing, integrating and supporting precise, long-range and focused munitions capabilities. Currently, the demand for SDB is high, given the fact that apart from the United States, eight foreign allies of the country use this precision weapon.
With more nations bumping up their defense spending, Boeing consistently enjoys frequent order flow from international markets for advanced arsenal like SDB. The latest contract win is a further testament for that.
Notably, the fiscal 2020 defense budget proposal reflects a solid spending provision of $5.1 billion for munitions. This should usher in more contract flows for Boeing as it is a renowned munitions manufacturer in the United States.
Meanwhile, such impressive budgetary revisions should also prove to be beneficial for other defense majors like Raytheon , Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) , which are prominent munitions manufacturers in the nation.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Boeing Wins $35M Deal to Support Small Diameter Bomb Program
The Boeing Co. (BA - Free Report) recently secured a modification contract worth $35 million for the integration, sustainment and support of the Small Diameter Bomb (SDB) Increment I miniature munition. The contract was awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, Florida.
Work related to the deal will be carried out in St. Louis, MO and is scheduled to be over by Apr 15, 2029.
The contract involves foreign military sales to Australia, Belgium, Canada, Denmark, Greece, Israel, South Korea, the Netherlands, Spain, Sweden, Turkey and Singapore, with an approved letter of offer and acceptance. Notably, Boeing will utilize fiscal 2015 and 2016 missile procurement and foreign military sales funds to complete the task.
A Brief Note on SDB
Boeing’s SDB is the next generation of low-cost and low collateral-damage precision strike weapons for internal and external carriage. It comes with a range greater than 60 nautical miles. The SDB carriage allows four weapons to be carried in one aircraft weapon station.
These precision weapons are 250-pound class bombs that allow the artillery system to hit targets from significantly longer distances and engage hard-to-reach targets while maintaining the SDB’s flight maneuverability and accuracy.
Currently, SDB is installed externally on F-15E, F-16 Block 30/40/50, Gripen and GR4 Tornado smart stations and is internally integrated in the bays of the F-22A, F-35A and Unmanned Combat Air Vehicles.
Our View
Boeing’s SDB is one of the very few weapon systems of its kind in the munitions market. Being one of the largest defense contractors in the United States, Boeing serves the U.S. aerospace and defense industry and its allies by producing, integrating and supporting precise, long-range and focused munitions capabilities. Currently, the demand for SDB is high, given the fact that apart from the United States, eight foreign allies of the country use this precision weapon.
With more nations bumping up their defense spending, Boeing consistently enjoys frequent order flow from international markets for advanced arsenal like SDB. The latest contract win is a further testament for that.
Notably, the fiscal 2020 defense budget proposal reflects a solid spending provision of $5.1 billion for munitions. This should usher in more contract flows for Boeing as it is a renowned munitions manufacturer in the United States.
Meanwhile, such impressive budgetary revisions should also prove to be beneficial for other defense majors like Raytheon , Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) , which are prominent munitions manufacturers in the nation.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>