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Textron (TXT) Unit Secures $475M Contract for MEUAS Services
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AAI Corporation, an operating unit of Textron Systems, a Textron Inc. (TXT - Free Report) company, has won a contract from the U.S. Special Operations Command (USSOCOM) for the Mid-Endurance Unmanned Aircraft Systems (MEUAS).
Contract Details
The contract has a ceiling value of $475 million. Per the contract, AAI Corp. will provide services for MEUAS intelligence, surveillance and reconnaissance (ISR) at various locations worldwide. It covers both firm-fixed-price and cost-reimbursable line items.
The contract includes a 54-month period of performance, with four 12-month ordering periods and after that one six-month ordering period.
Work is anticipated to be completed by Jun 2022. Notably, the contract will use fiscal 2017 operations and maintenance funds.
Textron’s Unmanned Aircraft
Textron’s unmanned aircraft systems include Aerosonde Small Unmanned Aircraft System (SUAS) and Shadow family of products. The Aerosonde SUAS is a high-performance system that incorporates a heavy-fuel engine for superior endurance. The Aerosonde aircraft's single electro-optic/infrared payload delivers day-and-night, persistent ISR, while its large payload size, weight and power can accommodate another payload of choice for multi-mission flexibility. It utilizes AAI Corp.'s one-piece Launch and Recovery Trailer and the Expeditionary Ground Control Station for expeditionary land and sea-based operations.
The Shadow family of UAS – Shadow V2 and Shadow M2 – which has already exceeded one million flight hours, provides ISR, communications relay and optional laser designation, and is optimized for manned/unmanned teaming. The system delivers multi-mission support, including a high-bandwidth encrypted data link to carry a range of payloads from high-definition video to secure control for prosecution missions.
Why Textron?
AAI Corp.’s multi-mission capable unmanned aircraft along with interoperable command and control technologies provide critical situational awareness and actionable intelligence for users globally.
Headquartered in Wilmington, MA, Textron Systems is known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment and operational services.
Further, Textron’s geographically diverse network of aircraft, defense & intelligence, industrial and finance businesses counters any specific business risk. The company is known worldwide for its most recognizable and valuable brand names, such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, E-Z-GO and Greenlee.
The company has a strong presence in diverse areas of business jets and other general aviation aircraft, helicopter, aircraft engines, golf carts, turf maintenance equipment, electronic test equipment and blow-molded fuel tanks.
Price Movement
Textron underperformed the Zacks categorized Aerospace/Defense industry in the last 12 months. The company’s current rate of return is 19%, compared with the industry average of 22.4%. This could be because Textron’s Bell segment continues to be a drag on the company’s overall top-line performance. Weakness in the global commercial helicopter market will affect segment revenues in 2017. The stock’s performance also lagged behind that of The Boeing Company (BA - Free Report) , General Dynamics Corp. (GD - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) , which have surpassed the industry mark.
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Textron (TXT) Unit Secures $475M Contract for MEUAS Services
AAI Corporation, an operating unit of Textron Systems, a Textron Inc. (TXT - Free Report) company, has won a contract from the U.S. Special Operations Command (USSOCOM) for the Mid-Endurance Unmanned Aircraft Systems (MEUAS).
Contract Details
The contract has a ceiling value of $475 million. Per the contract, AAI Corp. will provide services for MEUAS intelligence, surveillance and reconnaissance (ISR) at various locations worldwide. It covers both firm-fixed-price and cost-reimbursable line items.
The contract includes a 54-month period of performance, with four 12-month ordering periods and after that one six-month ordering period.
Work is anticipated to be completed by Jun 2022. Notably, the contract will use fiscal 2017 operations and maintenance funds.
Textron’s Unmanned Aircraft
Textron’s unmanned aircraft systems include Aerosonde Small Unmanned Aircraft System (SUAS) and Shadow family of products. The Aerosonde SUAS is a high-performance system that incorporates a heavy-fuel engine for superior endurance. The Aerosonde aircraft's single electro-optic/infrared payload delivers day-and-night, persistent ISR, while its large payload size, weight and power can accommodate another payload of choice for multi-mission flexibility. It utilizes AAI Corp.'s one-piece Launch and Recovery Trailer and the Expeditionary Ground Control Station for expeditionary land and sea-based operations.
The Shadow family of UAS – Shadow V2 and Shadow M2 – which has already exceeded one million flight hours, provides ISR, communications relay and optional laser designation, and is optimized for manned/unmanned teaming. The system delivers multi-mission support, including a high-bandwidth encrypted data link to carry a range of payloads from high-definition video to secure control for prosecution missions.
Why Textron?
AAI Corp.’s multi-mission capable unmanned aircraft along with interoperable command and control technologies provide critical situational awareness and actionable intelligence for users globally.
Headquartered in Wilmington, MA, Textron Systems is known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment and operational services.
Further, Textron’s geographically diverse network of aircraft, defense & intelligence, industrial and finance businesses counters any specific business risk. The company is known worldwide for its most recognizable and valuable brand names, such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, E-Z-GO and Greenlee.
The company has a strong presence in diverse areas of business jets and other general aviation aircraft, helicopter, aircraft engines, golf carts, turf maintenance equipment, electronic test equipment and blow-molded fuel tanks.
Price Movement
Textron underperformed the Zacks categorized Aerospace/Defense industry in the last 12 months. The company’s current rate of return is 19%, compared with the industry average of 22.4%. This could be because Textron’s Bell segment continues to be a drag on the company’s overall top-line performance. Weakness in the global commercial helicopter market will affect segment revenues in 2017. The stock’s performance also lagged behind that of The Boeing Company (BA - Free Report) , General Dynamics Corp. (GD - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) , which have surpassed the industry mark.
Zacks Rank
Textron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>