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Boeing (BA) Wins $221M Deal to Support F/A-18E/F & E/A-18G Jets

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The Boeing Company (BA - Free Report) recently clinched a $221.4-million contract involving the F/A-18 E/F and EA-18G aircraft. The deal involves the procurement of seven various configurations of flight control surface spares used on the F/A-18 E/F and EA-18G aircraft.

The work related to the deal will be carried out in St. Louis, MO. The contract, which is expected to be completed by December 2029, has been awarded by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.

What’s Favoring Boeing?

As nations continue to strengthen their defense structure, defense spending on military arms and ammunition that boast technologically advanced features continues to increase manifold. This also includes increased investments in military aircraft that play a critical role in air warfare missions.

Boeing being a global leader in the development, production, maintenance and enhancement of fixed-wing and rotary-wing aircraft stands to benefit from such increased demand. The company delivers the most digitally advanced, simply and efficiently produced and intelligently supported solutions to its customers. Its impressive range of product portfolio includes F/A-18 Super Hornet, P-8, C-17 Globemaster III, EA-18G, etc.

Its ability in the development, production and mission-enabling upgrades of integrated solutions helps the company witness a significant order inflow for its military aircraft, like the latest one. Such contract wins tend to boost BA’s operating results.

Going forward, 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. Considering the widening growth prospects in tandem with Boeing’s expertise in manufacturing military aircraft, BA’s order book may further get a significant boost, which will bolster its overall revenue generation prospects.

Peer Prospects

Such a solid market projection is estimated to boost other major defense primes like Lockheed Martin (LMT - Free Report) , Airbus (EADSY - Free Report) and Textron (TXT - Free Report) , which also have a well-established position in the military aircraft market.

Lockheed Martin 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’s 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 50.1% value to its investors in the past year.

Textron’s military aircraft include 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 33.3% in the past year.

Price Performance

Shares of Boeing have rallied 55.3% in the past year against the industry’s fall of 5.6%.

Zacks Investment Research
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.

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