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Boeing (BA) Wins $95M Deal to Support P-8A Poseidon Aircraft
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The Boeing Company (BA - Free Report) recently clinched a $95.4-million modification contract involving P-8A Poseidon aircraft. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $95.4 million, the contract is scheduled to be completed by October 2024. Per the terms of the deal, Boeing will offer CFM56-7B27A/3 and CFM56-7B27AE engine depot-level maintenance, repair and other technical services for P-8A Poseidon jets.
The contract will serve the U.S. Navy, the government of Australia and foreign military sales customers. The majority of the work related to this deal will be executed in Atlanta, GA.
What’s Favoring Boeing?
As nations continue to strengthen their defense structure, defense spending on military weaponry and ordinance boasting technologically advanced features continues to increase manifold. This also includes increased investments in military aircraft that play a critical role in air warfare missions.
This tends to benefit Boeing as the company is a prominent player in the defense industry and manufactures an extensive range of combat-proven aircraft programs that boast robust order bookings and a substantial backlog. Moreover, BA excels in providing supporting services like the repair and modification of these jets.
Boeing’s renowned military aircraft programs include the F/A-18E/F Super Hornet, P-8 programs, KC-46A Tanker, T-7A Red Hawk and a few more that continue to witness a steady order flow, like the latest one. This bolsters BA’s order book and boosts its future revenue generation prospects.
Peer Prospects
Per the report from the Coherent Market Insights firm, the global military aircraft market is poised to witness a CAGR of 5.4% between 2022 and 2030. This projection should benefit Boeing and 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 manufactures the most agile and effective fighter aircraft. Its product portfolio includes the C-130J Super Hercules, F-16 Fighting Falcon, F-35 Lightning II fighter aircraft, etc.
Lockheed boasts a long-term earnings growth rate of 8.4%. Its shares have returned 0.3% to its investors in the past year.
Airbus’ military aircraft consists 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 37% 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 29.2% in the past year.
Price Performance
Shares of Boeing have rallied 34.1% in the past year against the industry’s fall of 4.8%.
Image: Bigstock
Boeing (BA) Wins $95M Deal to Support P-8A Poseidon Aircraft
The Boeing Company (BA - Free Report) recently clinched a $95.4-million modification contract involving P-8A Poseidon aircraft. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $95.4 million, the contract is scheduled to be completed by October 2024. Per the terms of the deal, Boeing will offer CFM56-7B27A/3 and CFM56-7B27AE engine depot-level maintenance, repair and other technical services for P-8A Poseidon jets.
The contract will serve the U.S. Navy, the government of Australia and foreign military sales customers. The majority of the work related to this deal will be executed in Atlanta, GA.
What’s Favoring Boeing?
As nations continue to strengthen their defense structure, defense spending on military weaponry and ordinance boasting technologically advanced features continues to increase manifold. This also includes increased investments in military aircraft that play a critical role in air warfare missions.
This tends to benefit Boeing as the company is a prominent player in the defense industry and manufactures an extensive range of combat-proven aircraft programs that boast robust order bookings and a substantial backlog. Moreover, BA excels in providing supporting services like the repair and modification of these jets.
Boeing’s renowned military aircraft programs include the F/A-18E/F Super Hornet, P-8 programs, KC-46A Tanker, T-7A Red Hawk and a few more that continue to witness a steady order flow, like the latest one. This bolsters BA’s order book and boosts its future revenue generation prospects.
Peer Prospects
Per the report from the Coherent Market Insights firm, the global military aircraft market is poised to witness a CAGR of 5.4% between 2022 and 2030. This projection should benefit Boeing and 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 manufactures the most agile and effective fighter aircraft. Its product portfolio includes the C-130J Super Hercules, F-16 Fighting Falcon, F-35 Lightning II fighter aircraft, etc.
Lockheed boasts a long-term earnings growth rate of 8.4%. Its shares have returned 0.3% to its investors in the past year.
Airbus’ military aircraft consists 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 37% 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 29.2% in the past year.
Price Performance
Shares of Boeing have rallied 34.1% in the past year against the industry’s fall of 4.8%.
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.