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Northrop (NOC) Wins Deal to Offer Command & Control Support

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Northrop Grumman Corp.’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a contract to offer software maintenance and software technical and development support for the Command-and-Control Personal Computer (C2PC) and the Tactical Service Oriented Architecture (TSOA) systems. The award has been provided by the Marine Corps System Command, Quantico, VA.

Valued at $75.6 million, this contract is expected to be completed by September 2027. Work for this deal will be executed in San Diego, CA.

About C2PC and TSOA

C2PC is a Windows-based client software application that helps in sharing and editing the Common Operational Picture over multiple workstations and among multiple agencies. Tactical Service Orientated Architecture (TSOA) allows sharing of mission-critical information on demand. The initiative provides a common, open architecture for C2 applications across the Marine Air-Ground Task Force Command.

In the era of advanced technology, C2PC and TSOA offer efficient and enhanced support to military operations.

What’s Favoring Northrop?

Marine Corps is engaged in deterring cyber security attacks and distributing critical tactical data quickly and securely. For this, they need cyber secure, easy-to-use, highly reliable and lightning-fast command and control (C2) software. an Northrop’s C2PC is one such combat-proven software.

Notably, C2 applications are enormously complex and require processing and analysis of massive volumes of sensor imagery, intelligence data feeds, mission updates and digital communications. Northrop Grumman’s highly sophisticated C2 software automatically detects threats and alerts military decision-makers when action is required.

Given Northrop’s experience in providing real-time command and control information, the company witnesses a frequent flow of contracts for its C2 software. 

Looking Ahead

The increasing need for interoperability between security devices, along with the rising use of C2 software in space-based infrastructure as well as military missions, has been boosting the market for C2 systems. Per the Markets and Market firm, the global command and control systems market is projected to witness a CAGR of 4.9% from 2019 to 2025.

This should bolster NOC’s growth, with the company being a critical partner in delivering advanced Command, Control, Communications, Computers (C4) Intelligence, Surveillance and Reconnaissance (ISR) capabilities, systems integration, and open architectures across multiple domains.

Other defense companies, which should benefit from the growing command and control systems market are:

Lockheed Martin (LMT - Free Report) : It has expertise in developing C2 systems across multiple domains, ranging from nuclear deterrence missions to combat missions. For example, its Theater Battle Management Core Systems enables synchronized air battle management, while the company has partnered with the U.S. Strategic Command to help advance its nuclear deterrence mission and nuclear command, control and communications capabilities.

The company boasts a long-term earnings growth rate of 5.4%. LMT’s shares have gained 20.7% in the past year.

Boeing (BA - Free Report) : It is digitally developing the open systems that will make Joint All-Domain Command and Control a reality as well as the next-gen capabilities that each of the services needs to fight and win together in the multi-domain battlespace. Meanwhile, its Common Open Mission Management Command and Control is a revolutionary solution to control multiple unmanned aircraft with one ground control station and a single operator.

The company boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2022 sales implies a 14.8% improvement from the 2021 reported figure.

General Dynamics (GD - Free Report) : Its multi-domain Command & Control systems enable warfighters to share information, visualize the battlefield and engage targets. Some of its C2 products include a tactical airspace integration system, Sentinel GBSD, integrated mission planning and airspace control tools as well as GeoSuite software.

The company boasts a long-term earnings growth rate of 10.2%. The Zacks Consensus Estimate for GD’s 2022 sales implies a 2.6% improvement from the 2021 reported figure.

Price Movement

In the past year, shares of Northrop have gained 38.7% against the industry’s decline of 33.4%.

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Zacks Rank

Northrop currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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