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Boeing (BA) Secures $7.1B Air Force Deal for C-17 Support
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The Boeing Co. (BA - Free Report) has clinched a modification contract to support sustainment of C-17 aircraft due to increase in fleet and number operating bases.
Details of the Deal
Valued at $7.1 billion, the contract has been awarded by the Air Force Life Cycle Management Center, C-17 Contracting Branch, Robins Air Force Base, GA.
Work related to this deal is scheduled to be over by Sep 30, 2021 and will be carried out across the globe.
A Brief Note on C-17
Boeing’s C-17 Globemaster III is a large military transport aircraft. The multi-service C-17 can carry large equipment, supplies troops directly to small airfields in harsh terrain anywhere in the world.
In addition, it can take off from a 7,600-ft. airfield, carry a payload of 160,000 pounds, fly 2,400 nautical miles, re-fuel in flight and land in 3,000 feet or less on a small unpaved or paved airfield in day or night. Also, it can perform tactical airlift, medical evacuation and airdrop missions.
Why Boeing?
Boeing is one of the major players in the defense business. In fact, the company stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog.
In particular, among other defense equipments, Boeing’s key forte has been combat-proven aircraft. Also, it started developing military aerial refueling and strategic transport aircraft, of late. In fact, with its proven expertise in aerospace programs, the company has been clinching a huge number of contracts from the Pentagon for long.
For example, it recently clinched a contract worth $409 million, for Next Generation Thermal, Power and Controls (NGT-PAC) program. This deal forms part of a joint effort of multiple government agencies and industry to develop revolutionary and innovative technologies. Moreover, through it applied research will be conducted for enhancing knowledge and understanding of future power, thermal and controls requirements.
Again, in June, Boeing secured a modification to a foreign military sales contract worth $410.9 million from the U.S. Army Contracting Command, Redstone Arsenal, AL. Per the terms of the original contract, it will provide 38 Apache aircraft, three Longbow crew trainers and associated spares to the U.K. government. Going forward, we expect such contracts, including the recent one, to add further impetus to the company’s growth trajectory.
Moreover, Trump’s presidency seems to have created a win-win situation for the Aerospace and Defense big shots like Boeing, Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corporation (NOC - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) . Evidently, these stocks saw a notable rise after Trump presented his “America First” budget.
Considering the current favorable budgetary scenario, we anticipate that such generous fund flows from Pentagon, in the form of contracts, will help Boeing to achieve its desired business expansion in the near term. Additionally, an increase in fund flow from the Pentagon has raised investor’s optimism in the stock.
Price Movement
Shares of Boeing have rallied 76.4% in the last 12 months, outperforming the industry’s gain of 34.7%. This could be because of the company’s strong balance sheet and cash flows that provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions.
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
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Boeing (BA) Secures $7.1B Air Force Deal for C-17 Support
The Boeing Co. (BA - Free Report) has clinched a modification contract to support sustainment of C-17 aircraft due to increase in fleet and number operating bases.
Details of the Deal
Valued at $7.1 billion, the contract has been awarded by the Air Force Life Cycle Management Center, C-17 Contracting Branch, Robins Air Force Base, GA.
Work related to this deal is scheduled to be over by Sep 30, 2021 and will be carried out across the globe.
A Brief Note on C-17
Boeing’s C-17 Globemaster III is a large military transport aircraft. The multi-service C-17 can carry large equipment, supplies troops directly to small airfields in harsh terrain anywhere in the world.
In addition, it can take off from a 7,600-ft. airfield, carry a payload of 160,000 pounds, fly 2,400 nautical miles, re-fuel in flight and land in 3,000 feet or less on a small unpaved or paved airfield in day or night. Also, it can perform tactical airlift, medical evacuation and airdrop missions.
Why Boeing?
Boeing is one of the major players in the defense business. In fact, the company stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog.
In particular, among other defense equipments, Boeing’s key forte has been combat-proven aircraft. Also, it started developing military aerial refueling and strategic transport aircraft, of late. In fact, with its proven expertise in aerospace programs, the company has been clinching a huge number of contracts from the Pentagon for long.
For example, it recently clinched a contract worth $409 million, for Next Generation Thermal, Power and Controls (NGT-PAC) program. This deal forms part of a joint effort of multiple government agencies and industry to develop revolutionary and innovative technologies. Moreover, through it applied research will be conducted for enhancing knowledge and understanding of future power, thermal and controls requirements.
Again, in June, Boeing secured a modification to a foreign military sales contract worth $410.9 million from the U.S. Army Contracting Command, Redstone Arsenal, AL. Per the terms of the original contract, it will provide 38 Apache aircraft, three Longbow crew trainers and associated spares to the U.K. government. Going forward, we expect such contracts, including the recent one, to add further impetus to the company’s growth trajectory.
Moreover, Trump’s presidency seems to have created a win-win situation for the Aerospace and Defense big shots like Boeing, Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corporation (NOC - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) . Evidently, these stocks saw a notable rise after Trump presented his “America First” budget.
Considering the current favorable budgetary scenario, we anticipate that such generous fund flows from Pentagon, in the form of contracts, will help Boeing to achieve its desired business expansion in the near term. Additionally, an increase in fund flow from the Pentagon has raised investor’s optimism in the stock.
Price Movement
Shares of Boeing have rallied 76.4% in the last 12 months, outperforming the industry’s gain of 34.7%. This could be because of the company’s strong balance sheet and cash flows that provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions.
Zacks Rank
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>