We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing (BA) Secures a $271M Contract to Aid MH-47G Helicopter
Read MoreHide Full Article
The Boeing Company (BA - Free Report) recently clinched a modification contract involving its MH-47G helicopter. The award has been offered by the U.S. Special Operations Command (USSOCOM), MacDill Air Force Base, FL.
Valued at $271.2 million, this contract is projected to be completed by May 2027. Per the terms of the contract, Boeing will procure MH-47G renew-build rotary wing aircraft to support USSOCOM. Majority of the work related to this deal will be executed in Ridley Park, PA.
What’s Favoring Boeing?
The rise in security threats and the need to modernize the defense infrastructure have led nations around the globe to increase their defense spending. Also, the need to meet the ever-changing dynamics of the military landscape is fueling the demand for technologically advanced weapons. In such a scenario, the demand for technologically advanced military helicopters is also gaining momentum.
Military helicopters boast abilities to carry out missions effectively. Their various roles in a warship, like rescue missions, surveillance and airborne missions, and their ability to fly at all altitudes and hover when needed make them a versatile choice for military missions.
Consequently, many nations across the globe are increasingly spending on upgrading their existing fleets. They are also investing in new technologically advanced helicopters. Looking ahead, per a report from the Mordor Intelligence firm, the global military rotorcraft market is projected to witness a CAGR of more than 4% over the 2023-2028 period.
Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. This, in turn, may result in an inflow of orders for the company, like the latest one, thus boosting its revenue generation prospects.
Peer Prospects
Considering the growing importance of the military rotorcraft market, Boeing apart, other defense players that have also carved out a position in this space and thus stand to benefit from the expanding market size have been discussed below.
Lockheed Martin’s (LMT - Free Report) business unit, Sikorsky, provides military and rotary-wing aircraft and is at the forefront of manufacturing the same. Its product portfolio of helicopters includes Black Hawk, Defiant X, Raider X, S-97 Raider, etc.
Lockheed has a long-term earnings growth rate of 8.6%. Its shares have risen 6% in the past three months.
Textron (TXT - Free Report) enjoys a leading position in the manufacturing of military helicopters. Its product portfolio includes combat-proven helicopters like Bell 360, V-280, AH-1Z, UH-1Y etc.
Textron’s long-term earnings growth rate is 11.7%. The Zacks Consensus Estimate for TXT’s 2023 sales indicates an improvement of 6.4% from the 2022 reported figure.
Airbus (EADSY - Free Report) offers a comprehensive range of military helicopters. Its helicopter portfolio comprises of H125M, H145M, AS565 MBe, H160M, H175M etc.
Airbus boasts a long-term earnings growth rate of 12.4%. The consensus estimate for EADSY’s 2023 sales implies an improvement of 12.9% from the 2022 reported figure.
Price Movement
In the past year, shares of Boeing have risen 32.1% against the industry’s decline of 9.4%.
Image: Bigstock
Boeing (BA) Secures a $271M Contract to Aid MH-47G Helicopter
The Boeing Company (BA - Free Report) recently clinched a modification contract involving its MH-47G helicopter. The award has been offered by the U.S. Special Operations Command (USSOCOM), MacDill Air Force Base, FL.
Valued at $271.2 million, this contract is projected to be completed by May 2027. Per the terms of the contract, Boeing will procure MH-47G renew-build rotary wing aircraft to support USSOCOM.
Majority of the work related to this deal will be executed in Ridley Park, PA.
What’s Favoring Boeing?
The rise in security threats and the need to modernize the defense infrastructure have led nations around the globe to increase their defense spending. Also, the need to meet the ever-changing dynamics of the military landscape is fueling the demand for technologically advanced weapons. In such a scenario, the demand for technologically advanced military helicopters is also gaining momentum.
Military helicopters boast abilities to carry out missions effectively. Their various roles in a warship, like rescue missions, surveillance and airborne missions, and their ability to fly at all altitudes and hover when needed make them a versatile choice for military missions.
Consequently, many nations across the globe are increasingly spending on upgrading their existing fleets. They are also investing in new technologically advanced helicopters. Looking ahead, per a report from the Mordor Intelligence firm, the global military rotorcraft market is projected to witness a CAGR of more than 4% over the 2023-2028 period.
Such developing market opportunities promise immense growth potential for companies like Boeing that boast a strong portfolio of efficient military rotorcraft and can capitalize on the growing demand. This, in turn, may result in an inflow of orders for the company, like the latest one, thus boosting its revenue generation prospects.
Peer Prospects
Considering the growing importance of the military rotorcraft market, Boeing apart, other defense players that have also carved out a position in this space and thus stand to benefit from the expanding market size have been discussed below.
Lockheed Martin’s (LMT - Free Report) business unit, Sikorsky, provides military and rotary-wing aircraft and is at the forefront of manufacturing the same. Its product portfolio of helicopters includes Black Hawk, Defiant X, Raider X, S-97 Raider, etc.
Lockheed has a long-term earnings growth rate of 8.6%. Its shares have risen 6% in the past three months.
Textron (TXT - Free Report) enjoys a leading position in the manufacturing of military helicopters. Its product portfolio includes combat-proven helicopters like Bell 360, V-280, AH-1Z, UH-1Y etc.
Textron’s long-term earnings growth rate is 11.7%. The Zacks Consensus Estimate for TXT’s 2023 sales indicates an improvement of 6.4% from the 2022 reported figure.
Airbus (EADSY - Free Report) offers a comprehensive range of military helicopters. Its helicopter portfolio comprises of H125M, H145M, AS565 MBe, H160M, H175M etc.
Airbus boasts a long-term earnings growth rate of 12.4%. The consensus estimate for EADSY’s 2023 sales implies an improvement of 12.9% from the 2022 reported figure.
Price Movement
In the past year, shares of Boeing have risen 32.1% against the industry’s decline of 9.4%.
Image Source: Zacks Investment Research
Zacks Rank
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.