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Teledyne (TDY) Inks $62.1M Order for 500 Centaur Robot Systems
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Teledyne Technologies Incorporated’s (TDY - Free Report) business unit, Teledyne FLIR, recently announced that it has clinched an order from the U.S. Armed Services involving its Centaur unmanned ground systems. This contract also provisions for the supply of additional spares, antennas and payload mounting kits related to the robot system.
Details of the Deal
Teledyne FLIR inked a $62.1-million order for additional 500 Centaur unmanned ground systems, thus giving a strong boost to the overall contract value. With the current order, the contract value of the original Man Transportable Robot System Increment II (MTRS Inc. II) inches up from nearly $190 million to more than $250 million.
The delivery of the technologically advanced robot is anticipated to commence in the first quarter of 2023.
What’s Favoring Teledyne?
Owing to rising global threats, the demand for Unmanned Ground Vehicles (UGVs) is poised to grow as it tends to ease military missions in hazardous circumstances. To this end, Teledyne FLIR Centaur is considered to be the most versatile and sought-after tactical UGV to provide support for America’s military expeditions.
Additionally, it boasts technologically advanced features that can support unexploded explosive ordnance clearance in hotspots, such as Ukraine, and also assist in a wide array of manned/unmanned operations.
Such remarkable operating features that can assist in military missions most effectively may have fueled the demand for Centaur. The strong demand for the robot system can be gauged by the orders of more than 1,800 Centaurs from the Army, the Navy, the Air Force and the Marine Corps.
With Teledyne FLIR’s efforts to continuously upgrade the robot to meet the demands of the ever-changing defense landscape, the demand for this interoperability protocol-compliant robot is likely to increase manifold going forward. This, in turn, will bolster the revenue generation prospects of Teledyne FLIR over the long haul.
Growth Prospects
Per a report from Markets and Markets, the global UGV market is expected to witness a CAGR of 5.7% over the 2022-2027 period. Such widening market growth prospects brighten the scope for TDY to enhance its already established position in this realm of the defense landscape.
It is worth mentioning that Centaur apart, Teledyne FLIR recently expanded its product portfolio of UGVs by adding the PackBot 525 man-transportable UGV and the Kobra 725 heavy-payload UGV. Such an impressive product portfolio may enable the company to have a dominant position in the UGV market and win multiple orders from the Army, like the latest one.
Theexpanding UGV market may provide opportunities for defense majors like Northrop Grumman (NOC - Free Report) , BAE Systems (BAESY - Free Report) and L3Harris Technologies (LHX - Free Report) .
Northrop Grumman's Andros FX is a dexterous UGV designed to defeat a wide range of threats, including vehicle-borne improvised explosive devices. It also features updated system electronics, mobility improvements for increased speed and maneuverability and a new touchscreen operator control unit with 3-D system graphics, advanced manipulator controls and an improved user interface.
Northrop Grumman has a long-term (three to five years) earnings growth rate of 6.1%. NOC shares have appreciated 29.7% in the past year.
BAE Systems’ Ironclad has a unique set of capabilities for a UGV. Using high-endurance battery power, it offers near-silent running up to a 50-km range. A modular connection system allows two vehicles to be connected together to handle additional loads, such as a specialized stretcher. It is also protected against blasts and small arms fires to increase mission survivability.
BAE Systemsboasts a long-term earnings growth rate of 8.9%. BAESY stock has rallied 30.4% in the past year.
L3Harris T4 is a versatile, highly mobile UGV with the superior strength and all-terrain, all-weather performance to overcome any challenge.
L3Harris’ long-term earnings growth rate is pegged at 4.4%. LHX stock has appreciated 6.2% in the past year.
Price Movement
In the past month, shares of Teledyne Technologies have risen 4% compared with the industry’s growth rate of 3.8%.
Image: Bigstock
Teledyne (TDY) Inks $62.1M Order for 500 Centaur Robot Systems
Teledyne Technologies Incorporated’s (TDY - Free Report) business unit, Teledyne FLIR, recently announced that it has clinched an order from the U.S. Armed Services involving its Centaur unmanned ground systems. This contract also provisions for the supply of additional spares, antennas and payload mounting kits related to the robot system.
Details of the Deal
Teledyne FLIR inked a $62.1-million order for additional 500 Centaur unmanned ground systems, thus giving a strong boost to the overall contract value. With the current order, the contract value of the original Man Transportable Robot System Increment II (MTRS Inc. II) inches up from nearly $190 million to more than $250 million.
The delivery of the technologically advanced robot is anticipated to commence in the first quarter of 2023.
What’s Favoring Teledyne?
Owing to rising global threats, the demand for Unmanned Ground Vehicles (UGVs) is poised to grow as it tends to ease military missions in hazardous circumstances. To this end, Teledyne FLIR Centaur is considered to be the most versatile and sought-after tactical UGV to provide support for America’s military expeditions.
Additionally, it boasts technologically advanced features that can support unexploded explosive ordnance clearance in hotspots, such as Ukraine, and also assist in a wide array of manned/unmanned operations.
Such remarkable operating features that can assist in military missions most effectively may have fueled the demand for Centaur. The strong demand for the robot system can be gauged by the orders of more than 1,800 Centaurs from the Army, the Navy, the Air Force and the Marine Corps.
With Teledyne FLIR’s efforts to continuously upgrade the robot to meet the demands of the ever-changing defense landscape, the demand for this interoperability protocol-compliant robot is likely to increase manifold going forward. This, in turn, will bolster the revenue generation prospects of Teledyne FLIR over the long haul.
Growth Prospects
Per a report from Markets and Markets, the global UGV market is expected to witness a CAGR of 5.7% over the 2022-2027 period. Such widening market growth prospects brighten the scope for TDY to enhance its already established position in this realm of the defense landscape.
It is worth mentioning that Centaur apart, Teledyne FLIR recently expanded its product portfolio of UGVs by adding the PackBot 525 man-transportable UGV and the Kobra 725 heavy-payload UGV. Such an impressive product portfolio may enable the company to have a dominant position in the UGV market and win multiple orders from the Army, like the latest one.
Theexpanding UGV market may provide opportunities for defense majors like Northrop Grumman (NOC - Free Report) , BAE Systems (BAESY - Free Report) and L3Harris Technologies (LHX - Free Report) .
Northrop Grumman's Andros FX is a dexterous UGV designed to defeat a wide range of threats, including vehicle-borne improvised explosive devices. It also features updated system electronics, mobility improvements for increased speed and maneuverability and a new touchscreen operator control unit with 3-D system graphics, advanced manipulator controls and an improved user interface.
Northrop Grumman has a long-term (three to five years) earnings growth rate of 6.1%. NOC shares have appreciated 29.7% in the past year.
BAE Systems’ Ironclad has a unique set of capabilities for a UGV. Using high-endurance battery power, it offers near-silent running up to a 50-km range. A modular connection system allows two vehicles to be connected together to handle additional loads, such as a specialized stretcher. It is also protected against blasts and small arms fires to increase mission survivability.
BAE Systemsboasts a long-term earnings growth rate of 8.9%. BAESY stock has rallied 30.4% in the past year.
L3Harris T4 is a versatile, highly mobile UGV with the superior strength and all-terrain, all-weather performance to overcome any challenge.
L3Harris’ long-term earnings growth rate is pegged at 4.4%. LHX stock has appreciated 6.2% in the past year.
Price Movement
In the past month, shares of Teledyne Technologies have risen 4% compared with the industry’s growth rate of 3.8%.
Image Source: Zacks Investment Research
Zacks Rank
Teledyne Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.