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Textron (TXT) Unit Wins $95M Deal to Support T-6 Jet Program

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Textron Inc.’s (TXT - Free Report) business unit, Textron Aviation recently secured a contract, per which it will provide sustaining engineering and program management services for the T-6 aircraft. The deal has been awarded by the Air Force Life Cycle Management Center, Tinker Air Force Base, OK.

Valued at $95.1 million, the contract is expected to get completed by Apr 12, 2026. Work related to the deal is scheduled to be executed in Wichita, KS.

T-6 Specifics

Textron's Beechcraft T-6 delivers world-class training capability and is ideally suited for teaching the most basic flight training tasks through the more challenging and complex advanced training missions that could previously only be accomplished in far more expensive jet aircraft. The T-6 is being used in more than 20 countries around the world to train pilots, navigators, and weapons systems operators.  

Rising Demand for Military Jets & Textron Aviation

With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. Meanwhile, developed nations like the United States and Europe have already been leading the defense market.

It is imperative to mention in this context that military aircraft, both manned and unmanned, form an integral part of a country’s defense products. Notably, emerging trends in the combat aircraft space like fifth-generation technology aircraft, advanced composite materials, and stealth technology have been driving demand for military jets substantially.

Notably, Textron Aviation is home to the iconic Beechcraft, Cessna and Hawker brands, which account for more than half of all general aviation aircraft flying. In particular, Textron Aviation’s military trainer and defense aircraft include the T-6 trainer, which has been used to train pilots from more than 20 countries, and the AT-6 light attack military aircraft. With such renowned combat proven aircraft in its portfolio, along with other family of business jets, Textron Aviation boasts solid top-line growth prospects.

In its Aviation segment, the company currently expects to witness growth from increased aircraft deliveries on both jets and turboprops, including the entry into service of its new Cessna SkyCourier and higher aftermarket revenues driven by increased fleet utilization.

Prospects of Jet Manufacturers

Per a report by Fortune Business Insights, the global military aircraft market is expected to witness a CAGR of 3.1% to reach a value of $58.03 billion by 2026 from 2018. Since North America continues to dominate this market, jet makers in this nation like Textron, Boeing (BA - Free Report) , Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) are expected to benefit in terms of steady order flows involving their combat-proven aircraft. The latest contract win is a bright example of that.

Price Movement & Zacks Rank

In the past year, shares of Textron, a Zacks Rank #3 (Hold) company have surged 112.8% compared with the industry’s 24.8% rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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