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Boeing (BA) Secures Deal to Support F-15 Aircraft Program
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The Boeing Company (BA - Free Report) recently secured a modification contract for the F-15 depot program. The award has been offered by the Defense Logistics Agency Aviation, Philadelphia, PA.
Valued at $255 million, the contract is projected to be completed by May 17, 2027. The contract will serve the U.S. Air Force.
Rising Demand for Military Jets & Boeing
With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. Meanwhile, developed nations like the United States and Europe are already leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, form an integral part of a country’s defense products. It is to be noted that the emerging trends in the combat aircraft space, like fifth-generation technology aircraft, advanced composite materials and stealth technology, have been substantially driving demand for military jets.
The global military jet market is expanding, with North America leading this space. Boeing, being the largest jet maker in the United States, enjoys a dominant position. The company thus enjoys a frequent flow of contracts for military jets and associated upgrades. The latest contract win is a bright example.
Prospects
Per a Mordor Intelligence report, the global combat aircraft market is expected to witness a CAGR of more than 4% during the 2022-2031 time period, with North America constituting the largest share of this market. This can be attributed to a rise in global threats and geopolitical instabilities as well as increased spending on defense. This 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) .
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.
Lockheed boasts a long-term earnings growth rate of 6.2%. LMT stock has gained 40.9% in the past year.
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, anywhere, and under any conditions.
Northrop Grumman boasts a long-term earnings growth rate of 3.3%. LMT stock has gained 40.4% in the past year.
Textron’s business unit, namely Textron Aviation Defense, designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include Beechcraft T-6C trainer and AT-6 Wolverine.
Textron boasts a long-term earnings growth rate of 15.2%. The Zacks Consensus Estimate for TXT’s 2022 sales implies an improvement of 4.1% from the 2021 reported figure.
Price Movement & Zacks Rank
Shares of Boeing have lost 3.7% in the past year compared with the industry’s 2.5% decline.
Image Source: Zacks Investment Research
Boeing currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Boeing (BA) Secures Deal to Support F-15 Aircraft Program
The Boeing Company (BA - Free Report) recently secured a modification contract for the F-15 depot program. The award has been offered by the Defense Logistics Agency Aviation, Philadelphia, PA.
Valued at $255 million, the contract is projected to be completed by May 17, 2027. The contract will serve the U.S. Air Force.
Rising Demand for Military Jets & Boeing
With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. Meanwhile, developed nations like the United States and Europe are already leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, form an integral part of a country’s defense products. It is to be noted that the emerging trends in the combat aircraft space, like fifth-generation technology aircraft, advanced composite materials and stealth technology, have been substantially driving demand for military jets.
The global military jet market is expanding, with North America leading this space. Boeing, being the largest jet maker in the United States, enjoys a dominant position. The company thus enjoys a frequent flow of contracts for military jets and associated upgrades. The latest contract win is a bright example.
Prospects
Per a Mordor Intelligence report, the global combat aircraft market is expected to witness a CAGR of more than 4% during the 2022-2031 time period, with North America constituting the largest share of this market. This can be attributed to a rise in global threats and geopolitical instabilities as well as increased spending on defense. This 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) .
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.
Lockheed boasts a long-term earnings growth rate of 6.2%. LMT stock has gained 40.9% in the past year.
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, anywhere, and under any conditions.
Northrop Grumman boasts a long-term earnings growth rate of 3.3%. LMT stock has gained 40.4% in the past year.
Textron’s business unit, namely Textron Aviation Defense, designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include Beechcraft T-6C trainer and AT-6 Wolverine.
Textron boasts a long-term earnings growth rate of 15.2%. The Zacks Consensus Estimate for TXT’s 2022 sales implies an improvement of 4.1% from the 2021 reported figure.
Price Movement & Zacks Rank
Shares of Boeing have lost 3.7% in the past year compared with the industry’s 2.5% decline.
Image Source: Zacks Investment Research
Boeing currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.