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L3 Harris (LHX) Wins $584M Deal to Manufacture ALQ-211 AIDEWS
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L3 Harris Technologies, Inc. (LHX - Free Report) recently clinched a contract involving its ALQ-211Advanced Integrated Defensive Electronic Warfare Suite (AIDEWS). The award has been provided by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Valued at $584 million, the contract is projected to be completed by Apr 2, 2028. Per the terms of the deal, L3 Harris will be engaged in the production of ALQ-211 AIDEWS, apart from providing engineering services and repair support for the same.
This contract also authorizes L3 Harris to offer block cycle software development, technical orders and system integrity for AIDEWS. Work related to this deal will be carried out in Clifton, NJ.
The deal involves foreign military sales to Pakistan, India, Poland, Chile, Oman, Turkey, Iraq and Morocco.
Significance of ALQ-211 AIDEWS
L3 Harris’ ALQ-211 AIDEWS family of systems detects, denies, disrupts, degrades, evades lethal threats and provides multi-spectral (radio frequency, infrared and laser) situational awareness. When an aircrew encounters a threat emission, the ALQ-211 establishes the threat range from the mission aircraft. This AIDEWS is also suitable for unmanned aerial vehicles.
The ALQ-211 is currently integrated into the CV-22 Osprey Special Operations aircraft, Norwegian NH 90 multi-mission helicopter and used by international F-16 fighters for Chile, Poland, Pakistan, Turkey and Oman. This surely reflects the solid demand that the ALQ-211 AIDEWS already enjoys in the combat aviation space.
Such a solid demand must have been resulting in a strong inflow of orders for the aforementioned electronic warfare system, both from the Pentagon and the U.S. allies. The latest contract win is a bright example of that.
Growth Prospects
Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. As a result, an effective electronic warfare system with anti-missile solution features is likely to witness a pent-up demand.
Per a report from the Markets and Markets firm, the global electronic warfare system market is projected to witness a CAGR of more than 4% during 2022-2027. Such growth prospects should benefit L3 Harris, with its AIDEWS product already enjoying an established position in the aforementioned market. This market’s growth prospects should also benefit other defense majors who have forayed into the laser-based countermeasure system like Lockheed Martin (LMT - Free Report) , Northrop Grumman (NOC - Free Report) and General Dynamics (GD - Free Report) .
Lockheed Martin’s Advanced Off-Board Electronic Warfare (“AOEW”) program delivers persistent electronic surveillance and attack capability against naval threats like anti-ship missile (ASM). Its AOEW Active Mission Payload AN/ALQ-248 system is a self-contained electronic warfare pod hosted by the MH-60R or MH-60S Seahawk helicopter, which provides advanced ASM detection and response capabilities to the Navy.
LMT’s long-term earnings growth is pegged at 6.9%. Its shares have returned 5.6% value to investors in the past year.
Northrop’s Surface Electronic Warfare Improvement Program (“SEWIP”) Block 3 is an upgrade to the legacy AN/SLQ-32 system, and provides game-changing capability for non-kinetic electronic attack options to the U.S. fleet. It protects surface ships from anti-ship missiles, providing early detection, signal analysis and threat warning capabilities.
Some of its other electronic warfare systems are AN/APG-83 Scalable Agile Beam Radar, ALQ-251 radio frequency countermeasures system and AN/APR-39 Radar Warning Receiver/Electronic Warfare Management System.
NOC’s long-term earnings growth is pegged at 3.5%. The Zacks Consensus Estimate for the company’s 2023 sales indicates an improvement of 4.6% from the previous year.
Since many years, General Dynamics has been performing as the Lead Systems Integrator for SEWIP Block 1. SEWIP, a spiral-block development program, provides an immediate improvement for the legacy surface ship electronic warfare detection and countermeasure system — the AN/SLQ-32.
GD boasts a long-term earnings growth of 8.6%. The Zacks Consensus Estimate for the company’s 2023 sales indicates an improvement of 4.2% from the previous year.
Price Movement
In the past year, shares of L3 Harris have lost 23.2% compared to the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Zacks Rank
L3 Harris currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
L3 Harris (LHX) Wins $584M Deal to Manufacture ALQ-211 AIDEWS
L3 Harris Technologies, Inc. (LHX - Free Report) recently clinched a contract involving its ALQ-211Advanced Integrated Defensive Electronic Warfare Suite (AIDEWS). The award has been provided by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Valued at $584 million, the contract is projected to be completed by Apr 2, 2028. Per the terms of the deal, L3 Harris will be engaged in the production of ALQ-211 AIDEWS, apart from providing engineering services and repair support for the same.
This contract also authorizes L3 Harris to offer block cycle software development, technical orders and system integrity for AIDEWS. Work related to this deal will be carried out in Clifton, NJ.
The deal involves foreign military sales to Pakistan, India, Poland, Chile, Oman, Turkey, Iraq and Morocco.
Significance of ALQ-211 AIDEWS
L3 Harris’ ALQ-211 AIDEWS family of systems detects, denies, disrupts, degrades, evades lethal threats and provides multi-spectral (radio frequency, infrared and laser) situational awareness. When an aircrew encounters a threat emission, the ALQ-211 establishes the threat range from the mission aircraft. This AIDEWS is also suitable for unmanned aerial vehicles.
The ALQ-211 is currently integrated into the CV-22 Osprey Special Operations aircraft, Norwegian NH 90 multi-mission helicopter and used by international F-16 fighters for Chile, Poland, Pakistan, Turkey and Oman. This surely reflects the solid demand that the ALQ-211 AIDEWS already enjoys in the combat aviation space.
Such a solid demand must have been resulting in a strong inflow of orders for the aforementioned electronic warfare system, both from the Pentagon and the U.S. allies. The latest contract win is a bright example of that.
Growth Prospects
Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. As a result, an effective electronic warfare system with anti-missile solution features is likely to witness a pent-up demand.
Per a report from the Markets and Markets firm, the global electronic warfare system market is projected to witness a CAGR of more than 4% during 2022-2027. Such growth prospects should benefit L3 Harris, with its AIDEWS product already enjoying an established position in the aforementioned market.
This market’s growth prospects should also benefit other defense majors who have forayed into the laser-based countermeasure system like Lockheed Martin (LMT - Free Report) , Northrop Grumman (NOC - Free Report) and General Dynamics (GD - Free Report) .
Lockheed Martin’s Advanced Off-Board Electronic Warfare (“AOEW”) program delivers persistent electronic surveillance and attack capability against naval threats like anti-ship missile (ASM). Its AOEW Active Mission Payload AN/ALQ-248 system is a self-contained electronic warfare pod hosted by the MH-60R or MH-60S Seahawk helicopter, which provides advanced ASM detection and response capabilities to the Navy.
LMT’s long-term earnings growth is pegged at 6.9%. Its shares have returned 5.6% value to investors in the past year.
Northrop’s Surface Electronic Warfare Improvement Program (“SEWIP”) Block 3 is an upgrade to the legacy AN/SLQ-32 system, and provides game-changing capability for non-kinetic electronic attack options to the U.S. fleet. It protects surface ships from anti-ship missiles, providing early detection, signal analysis and threat warning capabilities.
Some of its other electronic warfare systems are AN/APG-83 Scalable Agile Beam Radar, ALQ-251 radio frequency countermeasures system and AN/APR-39 Radar Warning Receiver/Electronic Warfare Management System.
NOC’s long-term earnings growth is pegged at 3.5%. The Zacks Consensus Estimate for the company’s 2023 sales indicates an improvement of 4.6% from the previous year.
Since many years, General Dynamics has been performing as the Lead Systems Integrator for SEWIP Block 1. SEWIP, a spiral-block development program, provides an immediate improvement for the legacy surface ship electronic warfare detection and countermeasure system — the AN/SLQ-32.
GD boasts a long-term earnings growth of 8.6%. The Zacks Consensus Estimate for the company’s 2023 sales indicates an improvement of 4.2% from the previous year.
Price Movement
In the past year, shares of L3 Harris have lost 23.2% compared to the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Zacks Rank
L3 Harris currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.