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Boeing (BA) Wins $192M Deal to Support F/A-18E/F & E/A-18G Jets

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The Boeing Company (BA - Free Report) recently secured a contract involving the F/A-18E/F and E/A-18G combat jets. The award has been offered by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.

Details of the Deal

Valued at $191.8 million, the contract is expected to be completed by July 2025. Per the terms of the deal, Boeing will be engaged in the repair of multiple flight control surfaces used on the F/A-18E/F and E/A-18G aircraft.

The majority of the work related to this deal will be carried out in Jacksonville, FL. 

What’s Favoring Boeing?

Boeing, one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Furthermore, the company's expertise lies in a wide variety of aircraft components, repairs and modification-related programs.

Notably, its Defense, Space & Security segment’s portfolio has fixed-wing military aircraft, including F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker and T-7A Red Hawk.  Boeing's combat-proven aerospace programs and associated services, along with the rapidly growing need for military aircraft due to heightened geopolitical uncertainties worldwide, result in a solid inflow of orders from the Pentagon. The latest contract win is an example of that. Such order flows, in turn, should boost the top line of the defense business segment.

Growth Prospects

With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Meanwhile, developed nations like the United States and Europe have already been leading the defense market. With the United States being the largest worldwide weapons exporter, the nation has been spending amply on defense products. Boeing, the largest aircraft manufacturer in the United States, thus enjoys a dominant position in the combat aircraft market.

Per a Mordor Intelligence report, the global combat aircraft market is expected to witness a CAGR of 2.5% during the 2021-2026 time period, with North America constituting the largest share of this market. Such growth can be attributed to a rise in global threats and geopolitical instabilities and increased spending on defense. These projections should benefit Boeing along with other U.S.-based combat jet manufacturers like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Textron (TXT - Free Report) .

Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance, and aircraft self-protection systems that enable warfighters to accomplish missions anytime and anywhere, under any conditions.

Its Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems, whereas its Mission Systems segment offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control (AEW&C), LONGBOW Fire Control Radar (FCR) and Scalable Agile Beam Radar (SABR).

Lockheed’s Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include F-35, C-130 Hercules, F-16 Fighting Falcon and F-22 Raptor jets.

Moreover, its Missiles and Fire Control segment offers varied air defense solutions like its Joint Air-to-Surface Standoff Missile (JASSM) tactical missile program, an air-to-ground missile launched from fixed-wing aircraft. Hellfire is another air-to-ground missile, which is manufactured by Lockheed and used on rotary and fixed-wing aircraft.

Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally-known military aircraft, preferred for training and attack missions. Textron Aviation’s military trainer and defense aircraft include the T-6 trainer, which has been used to train pilots from more than 20 countries, and the AT-6 light attack military aircraft.

Moreover, its subsidiary, Able Aerospace Services provides component and maintenance, repair and overhaul services in support of commercial and military fixed- and rotor-wing aircraft.

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