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Boeing (BA) Wins Contract to Enhance Japan's F-15 Fighter Jets
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The Boeing Company (BA - Free Report) recently clinched a $474.5-million contract to enhance Japan’s F-15 fighter jet with electronic warfare capabilities under the Japan Super Interceptor Program. The contract, which is under foreign military sales for the Japan Air Self-Defense Force, requires Boeing to add the Eagle Passive Warning Survivability System to its F-15 family of jets.
The work related to the deal will be carried out in St. Louis, MO. The contract, which is expected to be completed by Dec 31, 2028, has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio.
Importance of F-15 Fighter Jets
The F-15 jet has the longest range, carries more weapons, flies faster and has the capability to deter any emerging threats. The complementary and interoperable capabilities of the F-15 strengthen its ability to secure peace throughout the region.
The jet has sufficient space, computing infrastructure, structural strength and power to continue evolving in the future. The need to equip the jet with technological upgrades has resulted in Boeing winning several contracts to modernize the jet with evolving technologies.
Per the report from Statista, Japan owned 200 F-15J/DJ fighters as of Mar 31, 2023. This highlights the possibility of more order inflows for Boeing to win such upgrade contracts, like the latest one, thus boosting its revenues from the defense line of business.
What Lies Ahead?
A strong defense structure acts as a deterrent against potential threats. Nations are augmenting their defense purchase to strengthen their warfare capabilities. This has led to the increased demand for fighter jets that boast advanced technology and are equipped with efficient arms and ammunition.
Per the report from the Coherent Market Insights firm, the global military aircraft market is poised to witness a CAGR of 5.4% over the 2022-2030 period.
Such abounding growth prospects are expected to boost Boeing’s position in the military aircraft market. The company is the prime contractor of the AH-6 Light Attack, AH-64D Apache, EA-18G Growler, F/A-18E/F Super Hornet, etc. Its proficiency in aircraft design, manufacturing and maintenance services provides a distinct advantage for thriving amid the increasing demand.
Peer Prospects
Other defense companies that may enjoy the perks of the expanding military aircraft market are as follows:
Lockheed Martin (LMT - Free Report) : It designs and integrates systems and manufactures the most agile and effective aircraft. Its product portfolio includes the Black Hawk, C-130J Super Hercules, F-16 Fighting Falcon, F-35 Lightning II fighter aircraft, etc.
Lockheed boasts a long-term earnings growth rate of 6.5%. Its shares have returned 1.5% to its investors in the past year.
Airbus Group (EADSY - Free Report) : Its military aircraft consist of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
Airbus’ long-term earnings growth rate is pegged at 12.4%. Shares of EADSY have returned 52.2% value to its investors in the past year.
Textron (TXT - Free Report) : Its military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft and the T-1A jet trainer.
Textron boasts a long-term earnings growth rate of 11.7%. TXT stock has appreciated 17.7% in the past year.
Price Performance
Shares of Boeing have rallied 36.8% in the past year against the industry’s fall of 6.6%.
Image: Bigstock
Boeing (BA) Wins Contract to Enhance Japan's F-15 Fighter Jets
The Boeing Company (BA - Free Report) recently clinched a $474.5-million contract to enhance Japan’s F-15 fighter jet with electronic warfare capabilities under the Japan Super Interceptor Program. The contract, which is under foreign military sales for the Japan Air Self-Defense Force, requires Boeing to add the Eagle Passive Warning Survivability System to its F-15 family of jets.
The work related to the deal will be carried out in St. Louis, MO. The contract, which is expected to be completed by Dec 31, 2028, has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio.
Importance of F-15 Fighter Jets
The F-15 jet has the longest range, carries more weapons, flies faster and has the capability to deter any emerging threats. The complementary and interoperable capabilities of the F-15 strengthen its ability to secure peace throughout the region.
The jet has sufficient space, computing infrastructure, structural strength and power to continue evolving in the future. The need to equip the jet with technological upgrades has resulted in Boeing winning several contracts to modernize the jet with evolving technologies.
Per the report from Statista, Japan owned 200 F-15J/DJ fighters as of Mar 31, 2023. This highlights the possibility of more order inflows for Boeing to win such upgrade contracts, like the latest one, thus boosting its revenues from the defense line of business.
What Lies Ahead?
A strong defense structure acts as a deterrent against potential threats. Nations are augmenting their defense purchase to strengthen their warfare capabilities. This has led to the increased demand for fighter jets that boast advanced technology and are equipped with efficient arms and ammunition.
Per the report from the Coherent Market Insights firm, the global military aircraft market is poised to witness a CAGR of 5.4% over the 2022-2030 period.
Such abounding growth prospects are expected to boost Boeing’s position in the military aircraft market. The company is the prime contractor of the AH-6 Light Attack, AH-64D Apache, EA-18G Growler, F/A-18E/F Super Hornet, etc. Its proficiency in aircraft design, manufacturing and maintenance services provides a distinct advantage for thriving amid the increasing demand.
Peer Prospects
Other defense companies that may enjoy the perks of the expanding military aircraft market are as follows:
Lockheed Martin (LMT - Free Report) : It designs and integrates systems and manufactures the most agile and effective aircraft. Its product portfolio includes the Black Hawk, C-130J Super Hercules, F-16 Fighting Falcon, F-35 Lightning II fighter aircraft, etc.
Lockheed boasts a long-term earnings growth rate of 6.5%. Its shares have returned 1.5% to its investors in the past year.
Airbus Group (EADSY - Free Report) : Its military aircraft consist of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
Airbus’ long-term earnings growth rate is pegged at 12.4%. Shares of EADSY have returned 52.2% value to its investors in the past year.
Textron (TXT - Free Report) : Its military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft and the T-1A jet trainer.
Textron boasts a long-term earnings growth rate of 11.7%. TXT stock has appreciated 17.7% in the past year.
Price Performance
Shares of Boeing have rallied 36.8% in the past year against the industry’s fall of 6.6%.
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.