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Boeing Secures $24M Navy Deal for AEA System Enhancements
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The Boeing Company (BA - Free Report) recently secured a $24.4-million contract for integrating Airborne Electronic Attack (AEA) System enhancements in ALQ-218 receiver system hardware and communication lines. The contract was awarded by the Naval Air Systems Command, Patuxent River, Maryland.
Details of the Deal
Per the terms, 13 sets of WRA-7, WRA-8, WRA-9, and 18 AEA gun bay pallets will be modified to support the U.S. Navy and the government of Australia. The U.S. Navy will purchase 95% of the order, whereas the rest would be purchased by the government of Australia.
Work related to the deal will be majorly carried out in Baltimore, MD; St. Louis, MI; and St. Augustine, FL. Boeing will utilize fiscal 2018 aircraft procurement (Navy) and foreign military sales funds for completing the tasks. Tasks related to the contract are expected to be completed in December 2020.
Benefits of the Deal
Northrop Grumman’s (NOC - Free Report) AN/ALQ-218 Radar Warning Receiver Sensor System provides the U.S. Navy with airborne situational awareness and signal intelligence gathering. It protects the war fighter by detecting, identifying, locating and analyzing sources of radio frequency (RF) emission. Now, AEA systems provide tactical jamming and electronic protection to the U.S. Navy and its respective military forces. With the AN/ALQ-218 sensor system currently installed in Boeing’s EA-18G and P-8A Poseidon aircraft, such AEA system enhancements to these sensors will make these jets even more combat-friendly for the U.S. military.
What Favors Boeing?
Considering Boeing’s combat-proven aerospace programs and associated services along with the rapidly growing need for military aircraft in light of the enhancing geopolitical uncertainties worldwide, the company witnesses a solid inflow of orders from Pentagon. These contract wins, like the latest one, boost top-line growth for the company’s defense business segment.
Meanwhile, Boeing recently completed the acquisition of KLX Inc., a major independent provider of aviation parts and services in the aerospace industry. The acquisition is expected to help Boeing enhance its global parts distribution and supply-chain services, and accelerate its Global Service’s growth strategies. The deal will also position the company to effectively serve customers in a $2.6-trillion global aerospace services market, for the next 10 years. This buyout, therefore, should enable the company to acquire more such contracts in the coming days.
Recent Budgetary Developments
In August 2018, President Trump approved the fiscal 2019 defense budget that provisioned major war fighting investments of $21.7 billion for aircraft. Besides Boeing, such solid budgetary provisions should significantly boost growth prospects of major defense players like Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) , which manufacture military jets.
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.
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Boeing Secures $24M Navy Deal for AEA System Enhancements
The Boeing Company (BA - Free Report) recently secured a $24.4-million contract for integrating Airborne Electronic Attack (AEA) System enhancements in ALQ-218 receiver system hardware and communication lines. The contract was awarded by the Naval Air Systems Command, Patuxent River, Maryland.
Details of the Deal
Per the terms, 13 sets of WRA-7, WRA-8, WRA-9, and 18 AEA gun bay pallets will be modified to support the U.S. Navy and the government of Australia. The U.S. Navy will purchase 95% of the order, whereas the rest would be purchased by the government of Australia.
Work related to the deal will be majorly carried out in Baltimore, MD; St. Louis, MI; and St. Augustine, FL. Boeing will utilize fiscal 2018 aircraft procurement (Navy) and foreign military sales funds for completing the tasks. Tasks related to the contract are expected to be completed in December 2020.
Benefits of the Deal
Northrop Grumman’s (NOC - Free Report) AN/ALQ-218 Radar Warning Receiver Sensor System provides the U.S. Navy with airborne situational awareness and signal intelligence gathering. It protects the war fighter by detecting, identifying, locating and analyzing sources of radio frequency (RF) emission. Now, AEA systems provide tactical jamming and electronic protection to the U.S. Navy and its respective military forces. With the AN/ALQ-218 sensor system currently installed in Boeing’s EA-18G and P-8A Poseidon aircraft, such AEA system enhancements to these sensors will make these jets even more combat-friendly for the U.S. military.
What Favors Boeing?
Considering Boeing’s combat-proven aerospace programs and associated services along with the rapidly growing need for military aircraft in light of the enhancing geopolitical uncertainties worldwide, the company witnesses a solid inflow of orders from Pentagon. These contract wins, like the latest one, boost top-line growth for the company’s defense business segment.
Meanwhile, Boeing recently completed the acquisition of KLX Inc., a major independent provider of aviation parts and services in the aerospace industry. The acquisition is expected to help Boeing enhance its global parts distribution and supply-chain services, and accelerate its Global Service’s growth strategies. The deal will also position the company to effectively serve customers in a $2.6-trillion global aerospace services market, for the next 10 years. This buyout, therefore, should enable the company to acquire more such contracts in the coming days.
Recent Budgetary Developments
In August 2018, President Trump approved the fiscal 2019 defense budget that provisioned major war fighting investments of $21.7 billion for aircraft. Besides Boeing, such solid budgetary provisions should significantly boost growth prospects of major defense players like Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) , which manufacture military jets.
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.
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