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Northrop (NOC) Wins $464M Deal to Aid BACN E-11A Jet Program
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Northrop Grumman Corp.’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp has clinched a contract to support the E-11A aircraft program. The award has been offered by the Air Force Life Cycle Management Center, Hanscom Air Force Base, MA.
Details of the Deal
Valued at $464.4 million, the contract is projected to be completed by Jan 23, 2028. Per the terms of the deal, Northrop will provide Battlefield Airborne Communications Node E-11A (BACN E-11A) platform maintenance and main operating base contractor logistics support establishment.
The company will also offer operations and sustainment of the BACN E-11A platform subsystems and ancillary equipment to continue effective flight operations, scheduled and unscheduled maintenance, and supply requirements for the E-11A aircraft and associated support equipment.
Significance of BACN
Northrop Grumman’s BACN, combined with the E-11A modified Bombardier BD700 business jet, enables a high-altitude, airborne communications gateway that translates and distributes imagery, voice and tactical data from disparate elements. This enhances situational awareness by enabling seamless interoperability for joint and coalition forces operating across air, space, land and sea.
Over the course of more than 15,500 missions, enabled by sustainment support that delivers uninterrupted mission readiness, the BACN Gateway has a mission availability rate greater than 98%.
What’s Favoring Northrop?
For fulfilling a smooth airborne military operation, a nation needs secure communication between ground operators and pilots flying in the battle zone. It is imperative to mention that Northrop’s BACN is one of the first airborne gateway systems that allows platforms to communicate and securely share data.
Apart from BACN, Northrop’s networked information solutions business unit also develops other advanced communications and network systems like F-35 Communications, Navigation and Identification (CNI) integrated avionics system and Airborne Signals Intelligence Payload (ASIP).
With such significant communications systems in its portfolio, Northrop enjoys notable demand in the military communications market. The latest contract win is a bright example of that.
Looking Ahead
A growing demand for advanced communication system in combat has been observed lately for better battlefield awareness and tactical communication between military commanders and their armed forces. Per the Fortune Business Insights firm, the global military communication market is projected to grow at a CAGR of 6.37% during the 2022-2029 period.
This should bolster the growth of NOC — a critical partner in delivering products, systems and services in the areas of advanced communications and network systems.
Other defense companies which should benefit from the growing military communication market are:
Lockheed Martin (LMT - Free Report) : Its major programs include the Command, Control, Communications, Computers, Cyber-Defense, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C6ISR) program and the Command and Control, Battle Management, and Communications (C2BMC) program to provide an air operations center for the Ballistic Missile Defense System for the U.S. government.
LMT boasts a long-term earnings growth rate of 6.2%. The stock has gained 28.2% in the past year.
Boeing (BA - Free Report) : Its major programs include Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) products. One of these products is the E-7 Airborne Early Warning & Control (AEW&C) — a combat-proven weapon system that provides powerful multi-domain surveillance, communications, and networked battle management capabilities, as well as interoperability that multiplies the effectiveness of joint and coalition forces.
BA boasts a long-term earnings growth rate of 4%. The stock has gained 41.3% in the past six months.
General Dynamics (GD - Free Report) : It develops multiple airborne communication systems like radios, which ensure safe aircraft landing, isolated personnel detection, secure soldier communication and effective communications for first responders to go where no one has gone before. Its featured radios are URC-300 Transceiver, Shadowcat Squad-Level Radio and HOOK3 Combat Survival Radio.
GD boasts a long-term earnings growth rate of 4%. The stock has gained 41.3% in the past six months.
Price Movement
In the past year, shares of Northrop have gained 24% against the industry’s decline of 7.6%.
Image: Bigstock
Northrop (NOC) Wins $464M Deal to Aid BACN E-11A Jet Program
Northrop Grumman Corp.’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp has clinched a contract to support the E-11A aircraft program. The award has been offered by the Air Force Life Cycle Management Center, Hanscom Air Force Base, MA.
Details of the Deal
Valued at $464.4 million, the contract is projected to be completed by Jan 23, 2028. Per the terms of the deal, Northrop will provide Battlefield Airborne Communications Node E-11A (BACN E-11A) platform maintenance and main operating base contractor logistics support establishment.
The company will also offer operations and sustainment of the BACN E-11A platform subsystems and ancillary equipment to continue effective flight operations, scheduled and unscheduled maintenance, and supply requirements for the E-11A aircraft and associated support equipment.
Significance of BACN
Northrop Grumman’s BACN, combined with the E-11A modified Bombardier BD700 business jet, enables a high-altitude, airborne communications gateway that translates and distributes imagery, voice and tactical data from disparate elements. This enhances situational awareness by enabling seamless interoperability for joint and coalition forces operating across air, space, land and sea.
Over the course of more than 15,500 missions, enabled by sustainment support that delivers uninterrupted mission readiness, the BACN Gateway has a mission availability rate greater than 98%.
What’s Favoring Northrop?
For fulfilling a smooth airborne military operation, a nation needs secure communication between ground operators and pilots flying in the battle zone. It is imperative to mention that Northrop’s BACN is one of the first airborne gateway systems that allows platforms to communicate and securely share data.
Apart from BACN, Northrop’s networked information solutions business unit also develops other advanced communications and network systems like F-35 Communications, Navigation and Identification (CNI) integrated avionics system and Airborne Signals Intelligence Payload (ASIP).
With such significant communications systems in its portfolio, Northrop enjoys notable demand in the military communications market. The latest contract win is a bright example of that.
Looking Ahead
A growing demand for advanced communication system in combat has been observed lately for better battlefield awareness and tactical communication between military commanders and their armed forces. Per the Fortune Business Insights firm, the global military communication market is projected to grow at a CAGR of 6.37% during the 2022-2029 period.
This should bolster the growth of NOC — a critical partner in delivering products, systems and services in the areas of advanced communications and network systems.
Other defense companies which should benefit from the growing military communication market are:
Lockheed Martin (LMT - Free Report) : Its major programs include the Command, Control, Communications, Computers, Cyber-Defense, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C6ISR) program and the Command and Control, Battle Management, and Communications (C2BMC) program to provide an air operations center for the Ballistic Missile Defense System for the U.S. government.
LMT boasts a long-term earnings growth rate of 6.2%. The stock has gained 28.2% in the past year.
Boeing (BA - Free Report) : Its major programs include Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) products. One of these products is the E-7 Airborne Early Warning & Control (AEW&C) — a combat-proven weapon system that provides powerful multi-domain surveillance, communications, and networked battle management capabilities, as well as interoperability that multiplies the effectiveness of joint and coalition forces.
BA boasts a long-term earnings growth rate of 4%. The stock has gained 41.3% in the past six months.
General Dynamics (GD - Free Report) : It develops multiple airborne communication systems like radios, which ensure safe aircraft landing, isolated personnel detection, secure soldier communication and effective communications for first responders to go where no one has gone before. Its featured radios are URC-300 Transceiver, Shadowcat Squad-Level Radio and HOOK3 Combat Survival Radio.
GD boasts a long-term earnings growth rate of 4%. The stock has gained 41.3% in the past six months.
Price Movement
In the past year, shares of Northrop have gained 24% against the industry’s decline of 7.6%.
Image Source: Zacks Investment Research
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.