Bell-Boeing, a joint venture (JV) between
The Boeing Company ( BA Quick Quote BA - Free Report) and Bell Helicopter — a unit of Textron Inc. ( TXT Quick Quote TXT - Free Report) — recently secured a contract to provide the logistics and repair support for MV-22B, CMV-22 (Navy) and CV-22 (Air Force) Osprey components. Work related to the deal is scheduled to be completed by December 2025.
Valued at $143.2 million, the contract was awarded by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.
The entire task will be executed in Fort Worth, TX. Growing Jet Demand & V-22 Jets
A rapid increase in terror attacks has compelled nations to strengthen their arsenal and bump up defense budget. With the United States being the largest exporter of defense equipment across the world, the nation enjoys a steady flow of contracts for its combat-proven weaponries from both Pentagon and its foreign allies. With military jets and helicopters constituting a major portion of the nation’s armaments, there is a steady flow of contracts for these weaponries.
Notably, Bell-Boeing’s primary product, V-22 Osprey is a family of multi-mission, tiltrotor military aircraft with both vertical as well as short takeoff and landing capabilities. It is designed to combine the functionality of a conventional helicopter with long-range, high-speed cruise performance of a turboprop aircraft. Notably, the CV-22 is a variant of the V-22 family of jets and helps to conduct long-range infiltration, exfiltration and resupply missions for special operations forces.
Considering these features of the aforementioned family of tiltroto and growing demand for military aircraft, V-22 and its variants enjoy decent demand across the globe. The latest deal win is a bright example of that.
Jet Manufacturers’ Prospects
Per a forecast made by Research and Markets firm, the global military aircraft market size is projected to register CAGR of more than 2.5% during the 2020-2025 period. This surely is going to benefit major U.S. combat aircraft manufacturers like Bell-Boeing,
Lockheed ( LMT Quick Quote LMT - Free Report) and Northrop Grumman ( NOC Quick Quote NOC - Free Report) , with North America dominating this market space. Price Movement & Zacks Rank
Textron’s stock has surged 123.7% in the past year against the
industry’s rise of 23.8%. Boeing’s shares have surged 73.5% in the said time frame.
Both Boeing and Textron currently carry a Zacks Rank #3 (Hold). You can see
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