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Boeing (BA) Wins $129M MTC Services Deal for F-15 Jets
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The Boeing Company (BA - Free Report) recently secured a contract to provide Mission Training Center (MTC) simulation services for F-15 jets. The deal has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson AFB, OH.
Details of the Deal
Valued at $128.8 million, the contract is expected to get completed by Dec 31, 2021. Per the terms, Boeing will supply personnel, equipment, transportation, tools, materials, supervision and other items to perform all MTC services.
The agreement aims to support the Air Combat Command, Pacific Air Forces and Air Force in Europe locations. Work related to this deal will be performed in various locations across the United States, Japan as well as United Kingdom.
Rising Demand for Military Jets Aiding Boeing
With rising security threats across the globe, emerging economies like Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. On the other hand, 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, forms 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 and associated upgrades substantially.
Consequently, as the global military jet market is expanding manifold, with North America leading this space. Boeing, being the largest jet maker in the United States enjoys a dominant position. The company thus enjoys frequent flow of contracts for military jets, along with its associated upgrades and services. The latest contract win is a bright example of that.
These contract wins provide a significant boost to the company’s defense business. Evidently, in first-quarter 2021, its defense segment recorded revenues worth $7.19 billion, reflecting solid year-over-year growth of 19% amid the challenges prsented by the COVID-19 crisis. We expect the latest contract win to further boost this segment’s growth in the coming days.
What Lies Ahead?
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 Boeing, Lockheed Martin (LMT - Free Report) , Textron (TXT - Free Report) and Northrop Grumman (NOC - Free Report) are expected to benefit in terms of steady order flows for their combat-proven aircraft.
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Boeing (BA) Wins $129M MTC Services Deal for F-15 Jets
The Boeing Company (BA - Free Report) recently secured a contract to provide Mission Training Center (MTC) simulation services for F-15 jets. The deal has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson AFB, OH.
Details of the Deal
Valued at $128.8 million, the contract is expected to get completed by Dec 31, 2021. Per the terms, Boeing will supply personnel, equipment, transportation, tools, materials, supervision and other items to perform all MTC services.
The agreement aims to support the Air Combat Command, Pacific Air Forces and Air Force in Europe locations. Work related to this deal will be performed in various locations across the United States, Japan as well as United Kingdom.
Rising Demand for Military Jets Aiding Boeing
With rising security threats across the globe, emerging economies like Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. On the other hand, 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, forms 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 and associated upgrades substantially.
Consequently, as the global military jet market is expanding manifold, with North America leading this space. Boeing, being the largest jet maker in the United States enjoys a dominant position. The company thus enjoys frequent flow of contracts for military jets, along with its associated upgrades and services. The latest contract win is a bright example of that.
These contract wins provide a significant boost to the company’s defense business. Evidently, in first-quarter 2021, its defense segment recorded revenues worth $7.19 billion, reflecting solid year-over-year growth of 19% amid the challenges prsented by the COVID-19 crisis. We expect the latest contract win to further boost this segment’s growth in the coming days.
What Lies Ahead?
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 Boeing, Lockheed Martin (LMT - Free Report) , Textron (TXT - Free Report) and Northrop Grumman (NOC - Free Report) are expected to benefit in terms of steady order flows for their combat-proven aircraft.
Price Movement & Zacks Rank
In the past year, shares of this Zacks Rank #3 (Hold) company have gained 35.5% compared with the industry’s 22.8% rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>