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Northrop (NOC) Arm Wins $40.7M Deal for Triton MQ-4C Aircraft
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Northrop Grumman Corporation’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a contract involving the Triton MQ-4C unmanned aircraft system (“UAS”). Valued at $40.7 million, the contract is projected to be completed in February 2028.
Details of the Deal
The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD. Per the terms, Northrop Grumman System will provide the Full Scale Fatigue Test (“FSFT”) and Effects of Defects (EoD) for the Triton MQ-4C UAS.
The work involves testing, analyzing and documenting the results of the FSFT and EoD tests. Also, the company will be accountable for identifying post-test activities to fully verify and validate the fatigue and damage tolerance requirement of the performance-based system specification.
The majority of the work involved in the deal will be carried out in San Diego, CA.
Benefits of Triton MQ-4C UAS
Northrop Grumman’s MQ-4C Triton UAS supports real-time intelligence, surveillance and reconnaissance over vast oceans and coastal regions.
Moreover, Triton’s autonomous operations are supported by land-based command and control mission planners and sensor operators. It also has a unique and robust mission sensor suite that excels in offering 360-degree coverage on all sensors, providing unprecedented maritime domain awareness for the U.S. Navy.
Built for the U.S. Navy, Triton is well-suited for any military missions, including maritime ISR patrol, signals intelligence, search and rescue and communications relay, and has the capability to fly more than 24 hours at a time at altitudes higher than 10 miles, with an operational range of 8,200 nautical miles.
Considering the underlying strength of Triton MQ-4C UAS amid the rising geopolitical tension, the demand for such jets is likely to be northward bound, which, in turn, will result in a strong order inflow for NOC. The latest contract win is a testament to that.
Growth Prospects
The rising geopolitical tensions globally have resulted in countries fortifying their defense spending to reinforce their national defense systems. This has led to a huge demand for defense products. Consequently, an effective and efficient UAS has also recorded a surge in demand over the past few years due to its applicability in the intelligence, surveillance and reconnaissance drives of military missions. Moreover, its remotely controlling features encourage a zero-mortality rate.
Per the Markets and Markets report, the military unmanned aircraft market is projected to expand at a CAGR of 16.4% during the 2021-2026 period. This should benefit Northrop Grumman and prominent defense majors like Lockheed Martin (LMT - Free Report) , L3Harris Technologies (LHX - Free Report) and Raytheon Technologies (RTX - Free Report) as they play a significant role in manufacturing UAS, which supports U.S. Army surveillance requirements.
Lockheed Martin has been delivering advanced autonomous systems to the U.S. military and allies to meet its customers’ most-demanding missions. Lockheed Martin provided a range of unmanned technologies, ranging from the X-44 Manta prototype, the Indago 3 unmanned drone and OUTRIDER.
Lockheed Martin’s long-term earnings growth rate stands at 5.7%. LMT shares have returned 10.6% in past year.
L3Harris is equipped to provide key non-cooperative surveillance solutions for Unmanned Aerial Vehicles and Systems, which enhance safety and aircraft efficiency and enable unmanned aircraft to fly in commercially controlled space effectively. Its forward vertical rotator family of systems is designed using L3Harris’ patented Hybrid Quadrotor technology for vertical takeoff and landing.
The long-term growth rate of L3 Harris is pegged at 4.4%. LHX shares have rallied 8.2% in the past year.
Raytheon’s Coyote UAS is small, expendable and tube-launched. It can be deployed from the ground, air or a ship. The Coyote UAS can be flown individually or netted together in swarms and it is adaptable for a variety of missions, including surveillance, electronic warfare and strikes.
The long-term growth rate of Raytheon is pegged at 10.5%. RTX shares have rallied 7.7% in the past year.
Price Movement
In the past year, shares of Northrop Grumman have surged 24.6% as against the industry’s decline of 42.8%.
Image: Bigstock
Northrop (NOC) Arm Wins $40.7M Deal for Triton MQ-4C Aircraft
Northrop Grumman Corporation’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a contract involving the Triton MQ-4C unmanned aircraft system (“UAS”). Valued at $40.7 million, the contract is projected to be completed in February 2028.
Details of the Deal
The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD. Per the terms, Northrop Grumman System will provide the Full Scale Fatigue Test (“FSFT”) and Effects of Defects (EoD) for the Triton MQ-4C UAS.
The work involves testing, analyzing and documenting the results of the FSFT and EoD tests. Also, the company will be accountable for identifying post-test activities to fully verify and validate the fatigue and damage tolerance requirement of the performance-based system specification.
The majority of the work involved in the deal will be carried out in San Diego, CA.
Benefits of Triton MQ-4C UAS
Northrop Grumman’s MQ-4C Triton UAS supports real-time intelligence, surveillance and reconnaissance over vast oceans and coastal regions.
Moreover, Triton’s autonomous operations are supported by land-based command and control mission planners and sensor operators. It also has a unique and robust mission sensor suite that excels in offering 360-degree coverage on all sensors, providing unprecedented maritime domain awareness for the U.S. Navy.
Built for the U.S. Navy, Triton is well-suited for any military missions, including maritime ISR patrol, signals intelligence, search and rescue and communications relay, and has the capability to fly more than 24 hours at a time at altitudes higher than 10 miles, with an operational range of 8,200 nautical miles.
Considering the underlying strength of Triton MQ-4C UAS amid the rising geopolitical tension, the demand for such jets is likely to be northward bound, which, in turn, will result in a strong order inflow for NOC. The latest contract win is a testament to that.
Growth Prospects
The rising geopolitical tensions globally have resulted in countries fortifying their defense spending to reinforce their national defense systems. This has led to a huge demand for defense products. Consequently, an effective and efficient UAS has also recorded a surge in demand over the past few years due to its applicability in the intelligence, surveillance and reconnaissance drives of military missions. Moreover, its remotely controlling features encourage a zero-mortality rate.
Per the Markets and Markets report, the military unmanned aircraft market is projected to expand at a CAGR of 16.4% during the 2021-2026 period. This should benefit Northrop Grumman and prominent defense majors like Lockheed Martin (LMT - Free Report) , L3Harris Technologies (LHX - Free Report) and Raytheon Technologies (RTX - Free Report) as they play a significant role in manufacturing UAS, which supports U.S. Army surveillance requirements.
Lockheed Martin has been delivering advanced autonomous systems to the U.S. military and allies to meet its customers’ most-demanding missions. Lockheed Martin provided a range of unmanned technologies, ranging from the X-44 Manta prototype, the Indago 3 unmanned drone and OUTRIDER.
Lockheed Martin’s long-term earnings growth rate stands at 5.7%. LMT shares have returned 10.6% in past year.
L3Harris is equipped to provide key non-cooperative surveillance solutions for Unmanned Aerial Vehicles and Systems, which enhance safety and aircraft efficiency and enable unmanned aircraft to fly in commercially controlled space effectively. Its forward vertical rotator family of systems is designed using L3Harris’ patented Hybrid Quadrotor technology for vertical takeoff and landing.
The long-term growth rate of L3 Harris is pegged at 4.4%. LHX shares have rallied 8.2% in the past year.
Raytheon’s Coyote UAS is small, expendable and tube-launched. It can be deployed from the ground, air or a ship. The Coyote UAS can be flown individually or netted together in swarms and it is adaptable for a variety of missions, including surveillance, electronic warfare and strikes.
The long-term growth rate of Raytheon is pegged at 10.5%. RTX shares have rallied 7.7% in the past year.
Price Movement
In the past year, shares of Northrop Grumman have surged 24.6% as against the industry’s decline of 42.8%.
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.