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Bell-Boeing Clinches Contract to Support V-22 Jet Program
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Bell-Boeing, a joint venture (JV) between The Boeing Company (BA - Free Report) and Bell Helicopter — a unit of Textron Inc. (TXT - Free Report) — recently secured a contract involving the V-22 aircraft. The Defense Logistics Agency Aviation, Philadelphia, PA, has awarded the deal.
Details of the Deal
Valued at $41.2 million, the contract is expected to be completed by Nov 30, 2024. Per the terms of the deal, Bell-Boeing will provide platform engineering and logistics sustainment support for the V-22 aircraft.
The contract will serve the U.S. Navy, Marine Corps, Air Force, and Japanese Ground Self Defense Force. Work related to this deal will be executed in Texas and Pennsylvania.
Growing Jet Demand & V-22 Jets
A rapid increase in terror attacks has compelled nations to strengthen their arsenal and bump up their defense budget. With the United States being the largest exporter of defense equipment across the world, there is a steady flow of contracts for its combat-proven weaponry from both Pentagon and its foreign allies. With military jets and helicopters constituting a major portion of a nation’s armaments, there is a steady flow of contracts for these.
Bell-Boeing’s primary product, V-22 Osprey, is a family of multi-mission, tiltrotor military aircraft with both vertical as well as short takeoff and landing capabilities. It is designed to combine the functionality of a conventional helicopter with the long-range, high-speed cruise performance of a turboprop aircraft. Notably, the CV-22 is a variant of the V-22 family of jets and helps conduct long-range infiltration, exfiltration and resupply missions for special operation forces.
Considering these features of the aforementioned family of tiltrotors and the growing demand for military aircraft, V-22 and its variants enjoy decent demand across the globe. The latest deal win is a bright example of that.
Growth Prospects
Per a forecast made by Mordor Intelligence, the global military aviation market size is projected to register a CAGR of 7.37% during the 2023-2028 period. This surely is going to benefit major U.S. combat aircraft manufacturers like Textron, Boeing, Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) , with North America dominating this market space.
Lockheed is one of the pioneers in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like F-35, C-130, F-16, F-22 and a few more. Of these, F-35 is the company’s largest program.
LMT boasts a long-term earnings growth rate of 8.6%. The stock boasts an average earnings surprise of 4.35% in the last four quarters.
On the other hand, Northrop is a renowned manufacturer of autonomous and manned aircraft like MQ-4C Triton and Global Hawk. These jets are used for battle management, strike and intelligence, surveillance and reconnaissance.
Northrop boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 6.4% from the 2022 reported figure.
Price Movement & Zacks Rank
Textron’s shares have risen 10.6% in the past year against the industry’s 7.9% decline. Boeing’s shares have rallied 19.5% in the past year.
Image Source: Zacks Investment Research
Textron currently carries a Zacks Rank #2 (Buy), while Boeing has a Zacks Rank #4 (Sell).
Image: Bigstock
Bell-Boeing Clinches Contract to Support V-22 Jet Program
Bell-Boeing, a joint venture (JV) between The Boeing Company (BA - Free Report) and Bell Helicopter — a unit of Textron Inc. (TXT - Free Report) — recently secured a contract involving the V-22 aircraft. The Defense Logistics Agency Aviation, Philadelphia, PA, has awarded the deal.
Details of the Deal
Valued at $41.2 million, the contract is expected to be completed by Nov 30, 2024. Per the terms of the deal, Bell-Boeing will provide platform engineering and logistics sustainment support for the V-22 aircraft.
The contract will serve the U.S. Navy, Marine Corps, Air Force, and Japanese Ground Self Defense Force. Work related to this deal will be executed in Texas and Pennsylvania.
Growing Jet Demand & V-22 Jets
A rapid increase in terror attacks has compelled nations to strengthen their arsenal and bump up their defense budget. With the United States being the largest exporter of defense equipment across the world, there is a steady flow of contracts for its combat-proven weaponry from both Pentagon and its foreign allies. With military jets and helicopters constituting a major portion of a nation’s armaments, there is a steady flow of contracts for these.
Bell-Boeing’s primary product, V-22 Osprey, is a family of multi-mission, tiltrotor military aircraft with both vertical as well as short takeoff and landing capabilities. It is designed to combine the functionality of a conventional helicopter with the long-range, high-speed cruise performance of a turboprop aircraft. Notably, the CV-22 is a variant of the V-22 family of jets and helps conduct long-range infiltration, exfiltration and resupply missions for special operation forces.
Considering these features of the aforementioned family of tiltrotors and the growing demand for military aircraft, V-22 and its variants enjoy decent demand across the globe. The latest deal win is a bright example of that.
Growth Prospects
Per a forecast made by Mordor Intelligence, the global military aviation market size is projected to register a CAGR of 7.37% during the 2023-2028 period. This surely is going to benefit major U.S. combat aircraft manufacturers like Textron, Boeing, Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) , with North America dominating this market space.
Lockheed is one of the pioneers in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like F-35, C-130, F-16, F-22 and a few more. Of these, F-35 is the company’s largest program.
LMT boasts a long-term earnings growth rate of 8.6%. The stock boasts an average earnings surprise of 4.35% in the last four quarters.
On the other hand, Northrop is a renowned manufacturer of autonomous and manned aircraft like MQ-4C Triton and Global Hawk. These jets are used for battle management, strike and intelligence, surveillance and reconnaissance.
Northrop boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 6.4% from the 2022 reported figure.
Price Movement & Zacks Rank
Textron’s shares have risen 10.6% in the past year against the industry’s 7.9% decline. Boeing’s shares have rallied 19.5% in the past year.
Image Source: Zacks Investment Research
Textron currently carries a Zacks Rank #2 (Buy), while Boeing has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.