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BAE Systems (BAESY) Wins Deal for Bradley Fighting Vehicles
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BAE Systems plc (BAESY - Free Report) recently clinched a contract for Bradley Fighting Vehicles. Valued at $49.7 million, the contract is projected to be completed by Aug 23, 2023.
The contract has been awarded by the U.S. Army Contracting Command, Detroit Arsenal, MI. The work related to this deal will be carried out in York, PA.
Significance of Bradley Fighting Vehicles
The Bradley Fighting Vehicle is an integral part of the U.S. Army’s Armored Brigade Combat Team (“ABCT”), and BAE Systems has a wide experience as a manufacturer and a systems integrator of the Bradley program for more than 30 years.
These vehicles boast capabilities that excel in providing outstanding survivability, mobility, and lethality. Meanwhile, the company’s continuous effort in improvising and upgrading the combat vehicle based on customers’ needs and mission requirements captivates the attention of the military.
It is imperative to mention that there have been several survivability upgrades to Bradley, which include the installation of underbelly protection and Bradley Urban Survivability Kits, which have further enhanced the safety of one of the most survivable vehicles in the fleet.
Against this backdrop, the newest state-of-the-art Bradley entails the latest digitized electronics for optimum situational awareness, network connectivity and communication within the ABCT.
Considering such advanced features of these combat vehicles, BAESY may have been witnessing the surged demand for the vehicle. The latest contract win is a bright example of that.
Growth Prospects
The defense landscape of nations is continuously upgrading itself to meet the ever-changing needs of military missions amid the rising geopolitical tension. In this regard, a combat-proven vehicle that can efficiently carry out the land missions of the military is likely to witness a surge in demand going forward.
The military armored vehicle market is expected to expand at a CAGR of 1% over the 2022-2030 period, per the report from the Business Wire research firm. The expanding market size is likely to benefit BAE Systems as it enjoys an established position in the combat vehicle market.
A few defense majors that may reap the benefits of the growth in the combat vehicle market are Northrop Grumman (NOC - Free Report) , General Dynamics (GD - Free Report) and Raytheon Technologies (RTX - Free Report) .
Northrop Grumman is the world’s top producer of medium-caliber live and training ammunition and gun systems, with more than five million units built in the last five years. It specializes in innovating low-cost, highly reliable precise weapons and ammunition for artillery and mortar systems, medium-caliber weapon platforms, battle tanks and individual soldiers.
Northrop Grumman has a long-term earnings growth rate of 2.2%. NOC’s investors have gained 34.8% in the past year.
General Dynamics’ Land Systems is a global leader in tracked and wheeled military vehicles. Its military vehicle program comprises the Abrams main battle tank, the family of Stryker and Light Armored Vehicles, wheeled combat vehicles and AJAX armored fighting vehicles.
General Dynamics’ long-term earnings growth rate is pegged at 10.2%. GD shares have returned 17.6% in the past year.
Raytheon is currently teaming up with American Rheinmetall Vehicles to meet the U.S. Army’s current requirement for a true, next-generation Optionally Manned Fighting Vehicle, namely the Lynx Infantry Fighting Vehicle. The Lynx Infantry Fighting Vehicle is a next-generation, tracked, armored fighting vehicle designed to address the critical challenges of the future battlefield.
Raytheon’s long-term earnings growth rate is pegged at 10.4%. RTX shares have returned 8.9% in the past year.
Price Performance
Shares of BAE Systems have rallied 20.6% in the past year compared with the industry’s growth of 3.4%.
Image: Bigstock
BAE Systems (BAESY) Wins Deal for Bradley Fighting Vehicles
BAE Systems plc (BAESY - Free Report) recently clinched a contract for Bradley Fighting Vehicles. Valued at $49.7 million, the contract is projected to be completed by Aug 23, 2023.
The contract has been awarded by the U.S. Army Contracting Command, Detroit Arsenal, MI. The work related to this deal will be carried out in York, PA.
Significance of Bradley Fighting Vehicles
The Bradley Fighting Vehicle is an integral part of the U.S. Army’s Armored Brigade Combat Team (“ABCT”), and BAE Systems has a wide experience as a manufacturer and a systems integrator of the Bradley program for more than 30 years.
These vehicles boast capabilities that excel in providing outstanding survivability, mobility, and lethality. Meanwhile, the company’s continuous effort in improvising and upgrading the combat vehicle based on customers’ needs and mission requirements captivates the attention of the military.
It is imperative to mention that there have been several survivability upgrades to Bradley, which include the installation of underbelly protection and Bradley Urban Survivability Kits, which have further enhanced the safety of one of the most survivable vehicles in the fleet.
Against this backdrop, the newest state-of-the-art Bradley entails the latest digitized electronics for optimum situational awareness, network connectivity and communication within the ABCT.
Considering such advanced features of these combat vehicles, BAESY may have been witnessing the surged demand for the vehicle. The latest contract win is a bright example of that.
Growth Prospects
The defense landscape of nations is continuously upgrading itself to meet the ever-changing needs of military missions amid the rising geopolitical tension. In this regard, a combat-proven vehicle that can efficiently carry out the land missions of the military is likely to witness a surge in demand going forward.
The military armored vehicle market is expected to expand at a CAGR of 1% over the 2022-2030 period, per the report from the Business Wire research firm. The expanding market size is likely to benefit BAE Systems as it enjoys an established position in the combat vehicle market.
A few defense majors that may reap the benefits of the growth in the combat vehicle market are Northrop Grumman (NOC - Free Report) , General Dynamics (GD - Free Report) and Raytheon Technologies (RTX - Free Report) .
Northrop Grumman is the world’s top producer of medium-caliber live and training ammunition and gun systems, with more than five million units built in the last five years. It specializes in innovating low-cost, highly reliable precise weapons and ammunition for artillery and mortar systems, medium-caliber weapon platforms, battle tanks and individual soldiers.
Northrop Grumman has a long-term earnings growth rate of 2.2%. NOC’s investors have gained 34.8% in the past year.
General Dynamics’ Land Systems is a global leader in tracked and wheeled military vehicles. Its military vehicle program comprises the Abrams main battle tank, the family of Stryker and Light Armored Vehicles, wheeled combat vehicles and AJAX armored fighting vehicles.
General Dynamics’ long-term earnings growth rate is pegged at 10.2%. GD shares have returned 17.6% in the past year.
Raytheon is currently teaming up with American Rheinmetall Vehicles to meet the U.S. Army’s current requirement for a true, next-generation Optionally Manned Fighting Vehicle, namely the Lynx Infantry Fighting Vehicle. The Lynx Infantry Fighting Vehicle is a next-generation, tracked, armored fighting vehicle designed to address the critical challenges of the future battlefield.
Raytheon’s long-term earnings growth rate is pegged at 10.4%. RTX shares have returned 8.9% in the past year.
Price Performance
Shares of BAE Systems have rallied 20.6% in the past year compared with the industry’s growth of 3.4%.
Image Source: Zacks Investment Research
Zacks Rank
BAE Systems currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.