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Boeing (BA) Wins Contract to Support CH-47F Block II Helicopter
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The Boeing Company (BA - Free Report) recently clinched an $11.6-million contract to provide system support for the CH-47F Block II helicopter. The work location will be determined with each order.
The contract, which is expected to be completed by May 30, 2027, has been awarded by the Army Contracting Command, Redstone Arsenal, AL.
What’s Favoring Boeing?
Nations are rejuvenating their defense strength, resulting in increased defense spending on upgraded arms and weapons. This has led to increased spending on military helicopters as well, thus benefiting companies that are into manufacturing defense helicopters.
Boeing enjoys an established position in manufacturing helicopters for military needs and boasts an impressive portfolio of stealth helicopters that suitably meet all military mission requirements. Boeing’s CH-47 Chinook Block II is powered by cutting-edge technologies that enable soldiers to meet heavy-lift mission requirements.
Flying faster, farther and smarter, CH-47 Block II improves readiness for the U.S. Army and Special Operations warfighters as well as limits future sustainment costs. Its strong demand can be gauged by 20 countries utilizing more than 950 Chinooks, while the helicopter continues to deliver unrivaled production, maintenance and sustainment cost efficiencies. The latest contract win by Boeing is a further testament to that.
What Lies Ahead?
Per the report from GlobeNewswire, the military helicopter market is expected to witness a CAGR of 2.4% by 2033. Such abounding growth prospects are expected to propel Boeing’s position in the military helicopter market. Its proficiency in helicopter design, manufacturing and maintenance services provides a distinct advantage for thriving amid the increasing demand.
This may lead to an increased order inflow for the company involving manufacturing or support services contracts of helicopters, like the latest one, thereby boosting its revenue growth prospects.
Peer Prospects
Defense majors that are likely to enjoy the perks of the expanding military helicopter market are as follows:
Airbus (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Airbus Helicopters’ principal military clients are the Ministries of Defence in Europe, Asia, the United States and Latin America. Some of EADSY’s military helicopters include H125M, H135, H145M, AS565MBe, H160M, H175M, H215M, H225M, etc.
Airbus boasts a long-term earnings growth rate of 12.4%. Shares of EADSY have delivered 34.9% in the past year.
Lockheed Martin (LMT - Free Report) : Its Sikorsky business unit provides military and rotary-wing aircraft to all five branches of the U.S. armed forces, along with military services and commercial operators in 40 nations. Some of LMT’s products include the Armed Black Hawk, CH-53K, MH-60R, Defiant X, Raider X, S-97 Raider, FireHawk, etc.
Lockheed Martin’s long-term earnings growth rate is pegged at 6.5%. LMT shares have increased 4.1% in the past year.
Textron (TXT - Free Report) : Its Bell business supplies advanced military helicopters and provides parts and support services to the U.S. government and military customers outside the United States. TXT Bell’s primary U.S. government programs are for the production and support of the V-22 tiltrotor aircraft and H-1 helicopters.
Textron’s long-term earnings growth rate is 11.7%. TXT shares have returned 16.6% in the past year.
Price Performance
Shares of Boeing have rallied 42.6% in the past year against the industry’s fall of 6.4%.
Image: Bigstock
Boeing (BA) Wins Contract to Support CH-47F Block II Helicopter
The Boeing Company (BA - Free Report) recently clinched an $11.6-million contract to provide system support for the CH-47F Block II helicopter. The work location will be determined with each order.
The contract, which is expected to be completed by May 30, 2027, has been awarded by the Army Contracting Command, Redstone Arsenal, AL.
What’s Favoring Boeing?
Nations are rejuvenating their defense strength, resulting in increased defense spending on upgraded arms and weapons. This has led to increased spending on military helicopters as well, thus benefiting companies that are into manufacturing defense helicopters.
Boeing enjoys an established position in manufacturing helicopters for military needs and boasts an impressive portfolio of stealth helicopters that suitably meet all military mission requirements. Boeing’s CH-47 Chinook Block II is powered by cutting-edge technologies that enable soldiers to meet heavy-lift mission requirements.
Flying faster, farther and smarter, CH-47 Block II improves readiness for the U.S. Army and Special Operations warfighters as well as limits future sustainment costs. Its strong demand can be gauged by 20 countries utilizing more than 950 Chinooks, while the helicopter continues to deliver unrivaled production, maintenance and sustainment cost efficiencies. The latest contract win by Boeing is a further testament to that.
What Lies Ahead?
Per the report from GlobeNewswire, the military helicopter market is expected to witness a CAGR of 2.4% by 2033. Such abounding growth prospects are expected to propel Boeing’s position in the military helicopter market. Its proficiency in helicopter design, manufacturing and maintenance services provides a distinct advantage for thriving amid the increasing demand.
This may lead to an increased order inflow for the company involving manufacturing or support services contracts of helicopters, like the latest one, thereby boosting its revenue growth prospects.
Peer Prospects
Defense majors that are likely to enjoy the perks of the expanding military helicopter market are as follows:
Airbus (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Airbus Helicopters’ principal military clients are the Ministries of Defence in Europe, Asia, the United States and Latin America. Some of EADSY’s military helicopters include H125M, H135, H145M, AS565MBe, H160M, H175M, H215M, H225M, etc.
Airbus boasts a long-term earnings growth rate of 12.4%. Shares of EADSY have delivered 34.9% in the past year.
Lockheed Martin (LMT - Free Report) : Its Sikorsky business unit provides military and rotary-wing aircraft to all five branches of the U.S. armed forces, along with military services and commercial operators in 40 nations. Some of LMT’s products include the Armed Black Hawk, CH-53K, MH-60R, Defiant X, Raider X, S-97 Raider, FireHawk, etc.
Lockheed Martin’s long-term earnings growth rate is pegged at 6.5%. LMT shares have increased 4.1% in the past year.
Textron (TXT - Free Report) : Its Bell business supplies advanced military helicopters and provides parts and support services to the U.S. government and military customers outside the United States. TXT Bell’s primary U.S. government programs are for the production and support of the V-22 tiltrotor aircraft and H-1 helicopters.
Textron’s long-term earnings growth rate is 11.7%. TXT shares have returned 16.6% in the past year.
Price Performance
Shares of Boeing have rallied 42.6% in the past year against the industry’s fall of 6.4%.
Image Source: Zacks Investment Research
Zacks Rank
Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.