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Northrop (NOC) Arm Wins $254.4M Deal for SEWIP Production
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Northrop Grumman Corporation’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a modification contract for the production of Surface Electronic Warfare Improvement Program (SEWIP) Block 3 Hemisphere systems. Valued at $254.4 million, the contract is projected to be completed by September 2025.
The modification contract was awarded by the Naval Sea Systems Command, Washington, D.C. The work related to the contract will be carried out at multiple locations, with a majority of it to be executed in Baltimore, MD.
Importance of SEWIP Block 3
The rising threat of missile attacks has been propelling the demand for an effective electronic warfare system that has the capability to defend ships against anti-ship missiles (“ASM”).
In this context, Northrop Grumman’s SEWIP Block 3 provides an effective way to detect a missile threat. It is an upgrade to the legacy AN/SLQ-32 system and provides the game-changing capability for non-kinetic electronic attack options for the U.S. fleet. The advantage of this electronic attack system is that it provides an unlimited, non-kinetic, soft-kill magazine to defeat inbound threats.
Growth Prospects
Globally, the recent invasion of Ukraine by Russia has intensified the need for modernizing and upgrading the defense landscape. Many nations have pledged to increase their defense spending to strengthen their warfare capabilities and deter any war situation.
To this end, an effective electronic warfare system like SEWIP Block 3 may witness pent-up demand, mainly due to its anti-missile feature that protects a country in case of any sudden assault.
Per a report from the MarketsandMarkets firm, the global electronic warfare system market is projected to witness a CAGR of 4.2% during the period 2020-2025. Such growth prospects bode well for NOC as it remains one of the leading defense contractors to provide such anti-missile electronic warfare systems.
The opportunistic electronic warfare system market is also likely to benefit defense majors like Lockheed Martin (LMT - Free Report) , Raytheon Technologies (RTX - Free Report) and General Dynamics (GD - Free Report) that have parked their funds in the electronic warfare system landscape.
Lockheed Martin’s Advanced Off-Board Electronic Warfare (“AOEW”) program delivers persistent electronic surveillance and attack capability against naval threats like ASM. Its AOEW Active Mission Payload AN/ALQ-248 system is a self-contained electronic warfare pod hosted by the MH-60R or MH-60S Seahawk helicopter, which provides the Navy with advanced ASM detection and response capabilities.
Lockheed Martin’s long-term earnings growth rate is pegged at 5.7%. Shares of LMT have returned 18% value to investors in the past year.
Raytheon’s AN/SLQ-32(V) shipboard electronic warfare system provides proven electronic support and countermeasure protection for the U.S. and international navies. The SLQ-32(V) is the principal electronic warfare system carried by major U.S. Navy surface ships. The (V)1 and (V)2 suites provide early warning, identification and direction-finding capability for simultaneous multiple threats. The (V)3 suite provides an additional active response for the simultaneous jamming of multiple threats.
The long-term growth rate of Raytheon is pegged at 10.5%. Shares of RTX have returned 8.7% in the past year.
Since many years, General Dynamics has been performing as the Lead Systems Integrator for SEWIP Block 1. Its SEWIP, a spiral-block development program, provides an immediate improvement for the legacy surface ship electronic warfare detection and countermeasure system, the AN/SLQ-32.
General Dynamics boasts a long-term earnings growth rate of 9.8%. GD stock has appreciated 19.5% in the past year.
Price Movement
In the past year, shares of Northrop Grumman have rallied 28.8% against the industry’s decline of 40.9%.
Image: Bigstock
Northrop (NOC) Arm Wins $254.4M Deal for SEWIP Production
Northrop Grumman Corporation’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a modification contract for the production of Surface Electronic Warfare Improvement Program (SEWIP) Block 3 Hemisphere systems. Valued at $254.4 million, the contract is projected to be completed by September 2025.
The modification contract was awarded by the Naval Sea Systems Command, Washington, D.C. The work related to the contract will be carried out at multiple locations, with a majority of it to be executed in Baltimore, MD.
Importance of SEWIP Block 3
The rising threat of missile attacks has been propelling the demand for an effective electronic warfare system that has the capability to defend ships against anti-ship missiles (“ASM”).
In this context, Northrop Grumman’s SEWIP Block 3 provides an effective way to detect a missile threat. It is an upgrade to the legacy AN/SLQ-32 system and provides the game-changing capability for non-kinetic electronic attack options for the U.S. fleet. The advantage of this electronic attack system is that it provides an unlimited, non-kinetic, soft-kill magazine to defeat inbound threats.
Growth Prospects
Globally, the recent invasion of Ukraine by Russia has intensified the need for modernizing and upgrading the defense landscape. Many nations have pledged to increase their defense spending to strengthen their warfare capabilities and deter any war situation.
To this end, an effective electronic warfare system like SEWIP Block 3 may witness pent-up demand, mainly due to its anti-missile feature that protects a country in case of any sudden assault.
Per a report from the MarketsandMarkets firm, the global electronic warfare system market is projected to witness a CAGR of 4.2% during the period 2020-2025. Such growth prospects bode well for NOC as it remains one of the leading defense contractors to provide such anti-missile electronic warfare systems.
The opportunistic electronic warfare system market is also likely to benefit defense majors like Lockheed Martin (LMT - Free Report) , Raytheon Technologies (RTX - Free Report) and General Dynamics (GD - Free Report) that have parked their funds in the electronic warfare system landscape.
Lockheed Martin’s Advanced Off-Board Electronic Warfare (“AOEW”) program delivers persistent electronic surveillance and attack capability against naval threats like ASM. Its AOEW Active Mission Payload AN/ALQ-248 system is a self-contained electronic warfare pod hosted by the MH-60R or MH-60S Seahawk helicopter, which provides the Navy with advanced ASM detection and response capabilities.
Lockheed Martin’s long-term earnings growth rate is pegged at 5.7%. Shares of LMT have returned 18% value to investors in the past year.
Raytheon’s AN/SLQ-32(V) shipboard electronic warfare system provides proven electronic support and countermeasure protection for the U.S. and international navies. The SLQ-32(V) is the principal electronic warfare system carried by major U.S. Navy surface ships. The (V)1 and (V)2 suites provide early warning, identification and direction-finding capability for simultaneous multiple threats. The (V)3 suite provides an additional active response for the simultaneous jamming of multiple threats.
The long-term growth rate of Raytheon is pegged at 10.5%. Shares of RTX have returned 8.7% in the past year.
Since many years, General Dynamics has been performing as the Lead Systems Integrator for SEWIP Block 1. Its SEWIP, a spiral-block development program, provides an immediate improvement for the legacy surface ship electronic warfare detection and countermeasure system, the AN/SLQ-32.
General Dynamics boasts a long-term earnings growth rate of 9.8%. GD stock has appreciated 19.5% in the past year.
Price Movement
In the past year, shares of Northrop Grumman have rallied 28.8% against the industry’s decline of 40.9%.
Image Source: Zacks Investment Research
Zacks Rank
Northrop Grumman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.