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L3Harris Technologies (LHX) Wins Deal to Support B-52 Aircraft

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L3Harris Technologies, Inc. (LHX - Free Report) recently secured a 10-year contract from the U.S. Air Force involving the upgradation of Boeing’s (BA) B-52 Aircraft. As part of the deal, L3Harris will modernize and enhance the B-52 aircraft with a proven electronic warfare system that can protect the aircrew from enemy radar threats.

Details of the Deal

Valued at more than $947 million, the contract entails L3Harris to modernize the AN/ALQ-172 electronic warfare (EW) self-protection system deployed in B-52 jets with enhanced integrated radio frequency system. This would enable military aircrew to simultaneously counter multiple electronic spectrum threats that interfere with aircraft operations.
The contract enables L3Harris to extend its services in modernizing the aircraft, which includes software sustainment to hardware upgrades.

Importance of AN/ALQ-172

Intense geo-political tensions globally have resulted in countries strengthening their defense system. In this context, a good electronic warfare system plays a vital role in adefense system as it highlights the ability to use the electromagnetic spectrum effectively. Countries are increasing their expenditure on improved and effective electronic warfare systems in order to defend themselves from radar threats, and ensure better security within the military services.
In this context, it is imperative to mention that L3Harris’s AN/ALQ-172 EW self-protection system can simultaneously counter multiple pulse, continuous wave, pulse Doppler and monopulse threats. It is integrated with the aircraft controls and displays and defensive subsystem to provide the aircrew protection against the most sophisticated radar-directed threats.
Such enhanced features made the L3Haris’s EW self-protection system anideal choice for the U.S Air Force for its B-52 bomber aircraft. The latest deal is a testament to that.

Looking Ahead

Per Frost & Sullivan report, the U.S. Department of Defense (DoD) electronic warfare market is projected to reach $3.6 billion by 2025, indicating an increase of 13.6% from $3.17 billion in 2021.
Without a doubt, this implies a strong inflow of orders for EW manufacturers like L3Harris going forward. Other defense majors that would reap the benefits of strong demand for advanced communication systems are Lockheed Martin (LMT - Free Report) , Northrop Grumman (NOC - Free Report) and Raytheon Technologies Corp (RTX - Free Report) .
Lockheed Martin supplies AN/ALQ-210 for the U.S. Navy and international MH-60R and the AN/ALQ-217 on the U.S. Navy’s E-2C/D aircraft, while Northrop Grumman delivers AN/APG-83 Scalable Agile Beam Radar (SABR) for the U.S. Navy’s F-16 fighter aircraft fleet that offers full-spectrum radar warning, threat identification and advanced countermeasure capabilities. Meanwhile, Raytheon’s ALR-69A(V) and ALR-69A(V) providea secure electronic shield against enemy radars.

Price Movement

In the past year, shares of L3Harris have gained 33.2% compared with the industry’s growth of 9.5%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank

L3Harris currently carries a Zacks #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.