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Boeing (BA) Wins $3.5B C-17 Globemaster III Jet Support Deal
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The Boeing Company (BA - Free Report) recently secured a contract for offering sustainment services for the C-17 Globemaster III jets. The deal was awarded by Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Details of the Deal
Valued at $3.46 billion, the contract is expected to be completed by May 30, 2031. Per the terms, Boeing is going to provide support and sustainment services to the government product support manager/product support integrator for the C-17 weapon system.
Work related to this deal will be executed at multiple domestic and international locations.
The contract involves Foreign Military Sales (FMS) to the United Kingdom, Australia, Canada, NATO Airlift Management Program Office, India, Kuwait, United Arab Emirates, and Qatar
Significance of C-17 Globemaster III
C-17 Globemaster III, a military transport aircraft, can carry large equipment, supplies, and troops directly to small airfields in harsh terrain anywhere in the world. It has delivered cargo in every worldwide operation since the 1990s.
With a focus on high performance at an affordable cost, Boeing provides sustainment and maintenance for global C-17 customers in eight allied countries.
Boeing’s Growth Prospects
With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Meanwhile, developed nations like the United States and Europe are already leading the defense market. With the United States being the largest weapons exporter worldwide, the nation has been spending amply on defense products wherein combat aircraft enjoys one of the dominating positions.
The U.S. fiscal 2022 defense budget proposal provisioned $52.4 billion for investments in military aircraft spending, where more than $8.5 billion has specifically been allotted to Boeing’s combat aircraft. This should enable the company to clinch more contracts like the latest one, related to military aircraft and associated services, considering its proven expertise in varied combat aircraft.
Looking Ahead
Per a Research and Markets report, the global combat aircraft market is expected to witness a CAGR of 4% during the 2020-2025 time period. Such growth can be attributed to a rise in global threats and geopolitical instabilities, and increased spending on defense. These projections should also benefit other combat jet manufacturers like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Airbus (EADSY - Free Report) .
Notably, Lockheed’s F-35 fighter jet serves as the backbone of the U.S. Air Force as well as 13 more nations and counting. On the other hand, as a leading provider of proven manned air systems, Northrop builds some of the world’s most advanced aircraft, from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
Moreover, Airbus’ world-class portfolio of products includes the Eurofighter Typhoon swing-role combat aircraft; the A400M, C295 and CN235 airlifters as well as the A330 Multi-Role Tanker Transport.
Price Movement and Zacks Rank
Shares of Boeing, a Zacks Rank #3 (Hold) company, have gained 33.5% in the past year against the industry’s decline of 4.9%.
Image: Bigstock
Boeing (BA) Wins $3.5B C-17 Globemaster III Jet Support Deal
The Boeing Company (BA - Free Report) recently secured a contract for offering sustainment services for the C-17 Globemaster III jets. The deal was awarded by Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Details of the Deal
Valued at $3.46 billion, the contract is expected to be completed by May 30, 2031. Per the terms, Boeing is going to provide support and sustainment services to the government product support manager/product support integrator for the C-17 weapon system.
Work related to this deal will be executed at multiple domestic and international locations.
The contract involves Foreign Military Sales (FMS) to the United Kingdom, Australia, Canada, NATO Airlift Management Program Office, India, Kuwait, United Arab Emirates, and Qatar
Significance of C-17 Globemaster III
C-17 Globemaster III, a military transport aircraft, can carry large equipment, supplies, and troops directly to small airfields in harsh terrain anywhere in the world. It has delivered cargo in every worldwide operation since the 1990s.
With a focus on high performance at an affordable cost, Boeing provides sustainment and maintenance for global C-17 customers in eight allied countries.
Boeing’s Growth Prospects
With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Meanwhile, developed nations like the United States and Europe are already leading the defense market. With the United States being the largest weapons exporter worldwide, the nation has been spending amply on defense products wherein combat aircraft enjoys one of the dominating positions.
The U.S. fiscal 2022 defense budget proposal provisioned $52.4 billion for investments in military aircraft spending, where more than $8.5 billion has specifically been allotted to Boeing’s combat aircraft. This should enable the company to clinch more contracts like the latest one, related to military aircraft and associated services, considering its proven expertise in varied combat aircraft.
Looking Ahead
Per a Research and Markets report, the global combat aircraft market is expected to witness a CAGR of 4% during the 2020-2025 time period. Such growth can be attributed to a rise in global threats and geopolitical instabilities, and increased spending on defense. These projections should also benefit other combat jet manufacturers like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Airbus (EADSY - Free Report) .
Notably, Lockheed’s F-35 fighter jet serves as the backbone of the U.S. Air Force as well as 13 more nations and counting. On the other hand, as a leading provider of proven manned air systems, Northrop builds some of the world’s most advanced aircraft, from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
Moreover, Airbus’ world-class portfolio of products includes the Eurofighter Typhoon swing-role combat aircraft; the A400M, C295 and CN235 airlifters as well as the A330 Multi-Role Tanker Transport.
Price Movement and Zacks Rank
Shares of Boeing, a Zacks Rank #3 (Hold) company, have gained 33.5% in the past year against the industry’s decline of 4.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.