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) Wins Modification Contract for F-15 Jet Program
Read MoreHide Full Article
The Boeing Company (BA - Free Report) recently secured a modification contract for its F-15 combat aircraft. The award has been given by the Air Force Life Cycle Management Center, Fighter and Advanced Aircraft Directorate, F-15 Division, Wright-Patterson Air Force Base, OH.
Details of the Deal
Valued at $61.2 million, the contract is expected to be completed by Dec 31, 2026. Per this deal, Boeing will carry out full-rate production of Advanced Display Core Processor (ADCP) II systems to allow the required integration of the systems into the F-15 platform.
The work related to this deal will be performed at St. Louis, MO, multiple continental U.S. operating locations, and Royal Air Force Lakenheath, the U.K.
Importance of F-15 for Boeing
Boeing’s new F-15EX is the most advanced version of the F-15, with digital fly-by-wire flight controls, a new electronic warfare system, an all-glass digital cockpit and the latest mission systems and software capabilities.
In 2023, Indonesia committed to purchasing up to 24 F-15EX aircraft, and Boeing also showcased the aircraft for Poland’s air dominance. Boeing’s F-15 program is now being operated by seven countries around the world. In 2023, Boeing successfully delivered nine of its F-15 jets. The statistic reflects the solid demand that the F-15 program enjoys worldwide. The latest contract win is a further testament to that.
Growth Prospects
Amid the geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchases to strengthen their warfare capabilities. This has led to an increased demand for fighter jets, which form an integral part of a country’s defense products.
Per a report by the Mordor Intelligence firm, the global military aviation market size is estimated to witness a CAGR of 7.37% in the 2024-2029 period. Such projections indicate immense opportunities for Boeing to reap the benefits of military aviation market expansion, with the company being the largest jet maker in the United States - the biggest weapons exporter in the world.
Notably, the company’s major combat aircraft programs include the MQ-25 unmanned aircraft system, the AH-64 Apache helicopter, the CH-47F advanced multi-mission helicopter, the F/A-18 Super Hornet tactical aircraft and the MH-139A Grey Wolf multi-mission helicopter.
Peer Opportunities
Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Textron (TXT - Free Report) .
Northrop Grumman has built some of the world’s most advanced combat aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye. The company also provides sustainment, modernization and training services for manned and unmanned aircraft and electronics systems to the U.S. military and a broad range of international customers.
Northrop boasts a long-term (three-to five-years) earnings growth rate of 3%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates an improvement of 4.3% from the 2023 reported figure.
Lockheed is one of the pioneers in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like the F-35, C-130, F-16, F-22 and a few more. Of these, the F-35 is the company’s largest program.
Lockheed boasts a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates an improvement of 2.6% from the 2023 reported figure.
Textron’s 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%. The Zacks Consensus Estimate for TXT’s 2024 sales indicates an improvement of 6.8% from the 2023 reported figure.
Price Performance
In the past year, shares of BA have rallied 1.8% against the industry’s 7.7% decline.
Image: Bigstock
Boeing (BA) Wins Modification Contract for F-15 Jet Program
The Boeing Company (BA - Free Report) recently secured a modification contract for its F-15 combat aircraft. The award has been given by the Air Force Life Cycle Management Center, Fighter and Advanced Aircraft Directorate, F-15 Division, Wright-Patterson Air Force Base, OH.
Details of the Deal
Valued at $61.2 million, the contract is expected to be completed by Dec 31, 2026. Per this deal, Boeing will carry out full-rate production of Advanced Display Core Processor (ADCP) II systems to allow the required integration of the systems into the F-15 platform.
The work related to this deal will be performed at St. Louis, MO, multiple continental U.S. operating locations, and Royal Air Force Lakenheath, the U.K.
Importance of F-15 for Boeing
Boeing’s new F-15EX is the most advanced version of the F-15, with digital fly-by-wire flight controls, a new electronic warfare system, an all-glass digital cockpit and the latest mission systems and software capabilities.
In 2023, Indonesia committed to purchasing up to 24 F-15EX aircraft, and Boeing also showcased the aircraft for Poland’s air dominance. Boeing’s F-15 program is now being operated by seven countries around the world. In 2023, Boeing successfully delivered nine of its F-15 jets. The statistic reflects the solid demand that the F-15 program enjoys worldwide. The latest contract win is a further testament to that.
Growth Prospects
Amid the geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchases to strengthen their warfare capabilities. This has led to an increased demand for fighter jets, which form an integral part of a country’s defense products.
Per a report by the Mordor Intelligence firm, the global military aviation market size is estimated to witness a CAGR of 7.37% in the 2024-2029 period. Such projections indicate immense opportunities for Boeing to reap the benefits of military aviation market expansion, with the company being the largest jet maker in the United States - the biggest weapons exporter in the world.
Notably, the company’s major combat aircraft programs include the MQ-25 unmanned aircraft system, the AH-64 Apache helicopter, the CH-47F advanced multi-mission helicopter, the F/A-18 Super Hornet tactical aircraft and the MH-139A Grey Wolf multi-mission helicopter.
Peer Opportunities
Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Textron (TXT - Free Report) .
Northrop Grumman has built some of the world’s most advanced combat aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye. The company also provides sustainment, modernization and training services for manned and unmanned aircraft and electronics systems to the U.S. military and a broad range of international customers.
Northrop boasts a long-term (three-to five-years) earnings growth rate of 3%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates an improvement of 4.3% from the 2023 reported figure.
Lockheed is one of the pioneers in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like the F-35, C-130, F-16, F-22 and a few more. Of these, the F-35 is the company’s largest program.
Lockheed boasts a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates an improvement of 2.6% from the 2023 reported figure.
Textron’s 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%. The Zacks Consensus Estimate for TXT’s 2024 sales indicates an improvement of 6.8% from the 2023 reported figure.
Price Performance
In the past year, shares of BA have rallied 1.8% against the industry’s 7.7% decline.
Image Source: Zacks Investment Research
Zacks Rank
Boeing currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.