Northrop Grumman Corporation’s ( NOC Quick Quote NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a contract involving the large aircraft infrared countermeasures infrared missile warning sensor. Valued at $31.2 million, the contract is projected to be completed by November 2025. Details of the Deal
The modification contract was awarded by the Air Force Life Cycle Management Center, Wright Patterson Air Force Base, OH. The deal involves the delivery of production sensors that address obsolete parts in the current sensor. The majority of work will be carried out in Rolling Meadows, IL.
Importance of Large Aircraft Infrared Countermeasures
The rising threat of missile attacks has been fueling the requirement for an effective infrared countermeasure that excels in providing spherical protection by detecting, tracking and jamming incoming infrared threats.
In this context, Northrop Grumman’s large aircraft infrared countermeasure system enjoys significant demand as it boasts the features of the laser-based countermeasure system that protects large fixed-wing transports and small rotary-wing aircraft from an infrared missile attack by automatically detecting a missile launch, determining if it is a threat and activating a high-intensity countermeasure system to track and defeat the threat.
In lieu of such advance features, NOC may continue to win orders like the latest one involving large aircraft infrared countermeasures. This, in turn, is likely to boost the revenue generation prospects of the company from the large aircraft infrared countermeasures arena.
Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. In fact, the recent invasion of Ukraine by Russia alarmed countries worldwide to increase their defense spending to strengthen their national security systems. To this end, an effective large aircraft infrared countermeasure may witness a ramp-up in demand due to its anti-missile solution features that protect a country in case of any sudden assault.
Per a report from the Research and Markets firm, the global airborne countermeasure system market is projected to witness a CAGR of 5.2% through 2026. Such growth prospects may benefit Northrop Grumman as it remains one of the leading defense contractors to provide the capable and adaptable laser-based countermeasures system for the U.S. Air Force.
The abounding growth prospects may benefit defense majors who have forayed into the laser-based countermeasure system like
Lockheed Martin ( LMT Quick Quote LMT - Free Report) , BAE Systems ( BAESY Quick Quote BAESY - Free Report) and L3 Harris Technologies ( LHX Quick Quote LHX - Free Report) .
Lockheed Martin’s space based-infrared system uses infrared surveillance to provide an early missile warning for the U.S. military and is considered one of the nation’s highest-priority space programs. The system includes a combination of satellites and hosted payloads in Geosynchronous Earth Orbit and Highly Elliptical Orbit and ground hardware and software.
Lockheed Martin’s long-term earnings growth rate stands at 5.7%. LMT shares have returned 9.6% in the past year.
BAE Systems’ laser-based Advance Threat Infrared Countermeasures (ATIRCM) system protects the fixed-wing and rotary aircraft from IR-guided missile attacks. ATIRCM is designed to be quickly removed, re-installed and updated with the latest threat information. It also includes a built-in tester that keeps it mission ready.
The long-term growth rate of BAE Systems is pegged at 5.3%. Shares of BAESY have returned 27.4% in the past year.
L3 Harris’ ALQ-211 family of systems detects, denies, disrupts, degrades and evades lethal threats and provides multi-spectral (radio frequency, infrared and laser) situational awareness.
The long-term growth rate of L3 Harris is pegged at 4.4%. LHX shares have rallied 7.7% in the past year.
In the past year, shares of Northrop Grumman have rallied 20.6% against the
industry’s decline of 40.5%. Image Source: Zacks Investment Research Zacks Rank
Northrop Grumman currently carries a Zacks Rank #3 (Hold). You can see
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