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General Dynamics (GD) Wins a $323M Deal for M10 Booker Vehicle
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General Dynamics Corp.’s (GD - Free Report) Land Systems business unit recently secured a contract to perform low-rate initial production (LRIP) of the M10 Booker combat vehicle. The award has been provided by the Army Contracting Command, Detroit Arsenal, MI.
Valued at $322.7 million, the contract is expected to be completed by Oct 20, 2026. Work related to this deal will be executed in Sterling Heights, MI; Anniston, AL; and Lima, OH.
What’s Favoring General Dynamics?
In this era of modern warfare, factors like widespread territorial disputes as well as urban conflicts are attracting increased investments in technologically advanced ground combat vehicles to perform counter-terrorism operations, apart from their traditional use in conventional cross-border fights. Resultantly, renowned manufacturers of combat-proven armored vehicles like General Dynamics are witnessing a solid contract flow like the latest one.
Notably, GD’s M10 Booker Combat is a highly lethal, survivable and mobile direct-fire combat vehicle, which boasts the capability to dominate ground threats on the multi-domain battlefield. It can move rapidly in a variety of terrain conditions to engage and destroy enemy combatants, bunkers, machine gun positions, fortifications and armored combat vehicles.
It is imperative to mention in this context that in May 2024, General Dynamics delivered the first M10 Booker vehicle to the U.S. Army. Earlier in July 2023, the company won a contract for the second phase of LRIP for these vehicles, which called for the delivery of 26 additional Booker vehicles to the U.S. Army. This, along with the latest LRIP contract, makes us confident that GD will continue to deliver more of the Booker Vehicles to the U.S. Army in the near future, thereby boosting the revenue generation prospect of its Land Systems unit.
What Lies Ahead?
As more and more nations are investing heftily to modernize their military capabilities, the demand for more versatile and agile combat vehicles remains high. This might have prompted the Markets and Markets firm to project that the global armored vehicle market will witness a CAGR of 3.3% during 2024-2029.
Such solid growth opportunity offered by the armored vehicle market should significantly boost General Dynamics, with its Land Systems being a forerunner in manufacturing combat vehicles. Notably, this unit is a leading provider of tracked and wheeled military equipment. Some of its renowned products, other than M10 Booker, are Abrams Main Battle Tank, the Stryker and LAV family of wheeled and specialty vehicles, as well as the AJAX armored brigade of fighting vehicles.
GD apart, defense majors that are likely to gain from the expanding global armored vehicle market are BAE Systems (BAESY - Free Report) , Northrop Grumman (NOC - Free Report) and RTX Corp. (RTX - Free Report) .
BAE Systems designs, manufactures, upgrades and supports tracked, specialty-tracked, and wheeled and amphibious combat vehicles. Some of BAE Systems’ combat vehicles are the Armored Multi-Purpose Vehicle, CV90, CV90MkIV, CV90 IFV, etc.
BAE Systems boasts a long-term earnings growth rate of 12.2%. The consensus estimate for BAESY’s 2024 sales implies an improvement of 34.6% from the 2023 reported figure.
Northrop specializes in innovating low-cost, highly reliable precise weapons and ammunition for artillery and mortar systems, medium-caliber weapon platforms, battle tanks and individual soldiers. Notably, its XM913 50mm Bushmaster Chain Gun is currently in production and designed to be the primary weapon on the U.S. Army’s XM30 Mechanized Infantry Combat Vehicle.
Northrop’s long-term earnings growth rate is 8.7%. The consensus estimate for NOC’s 2024 sales implies an improvement of 4.6% from the 2023 reported figure.
RTX is currently part of Team Lynx, which is digitally designing America’s next-generation infantry fighting vehicle, XM30. Notably, the Lynx XM30 incorporates RTX’s weapons, sensors, artificial intelligence and system integration expertise.
RTX has a long-term earnings growth rate of 10.6%. The consensus estimate for RTX’s 2024 sales implies an improvement of 6.2% from the 2023 reported figure.
Price Performance
Shares of General Dynamics have surged 37.5% in the past year against the industry’s decline of 10.3%.
Image Source: Zacks Investment Research
Zacks Rank
General Dynamics currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
General Dynamics (GD) Wins a $323M Deal for M10 Booker Vehicle
General Dynamics Corp.’s (GD - Free Report) Land Systems business unit recently secured a contract to perform low-rate initial production (LRIP) of the M10 Booker combat vehicle. The award has been provided by the Army Contracting Command, Detroit Arsenal, MI.
Valued at $322.7 million, the contract is expected to be completed by Oct 20, 2026. Work related to this deal will be executed in Sterling Heights, MI; Anniston, AL; and Lima, OH.
What’s Favoring General Dynamics?
In this era of modern warfare, factors like widespread territorial disputes as well as urban conflicts are attracting increased investments in technologically advanced ground combat vehicles to perform counter-terrorism operations, apart from their traditional use in conventional cross-border fights. Resultantly, renowned manufacturers of combat-proven armored vehicles like General Dynamics are witnessing a solid contract flow like the latest one.
Notably, GD’s M10 Booker Combat is a highly lethal, survivable and mobile direct-fire combat vehicle, which boasts the capability to dominate ground threats on the multi-domain battlefield. It can move rapidly in a variety of terrain conditions to engage and destroy enemy combatants, bunkers, machine gun positions, fortifications and armored combat vehicles.
It is imperative to mention in this context that in May 2024, General Dynamics delivered the first M10 Booker vehicle to the U.S. Army. Earlier in July 2023, the company won a contract for the second phase of LRIP for these vehicles, which called for the delivery of 26 additional Booker vehicles to the U.S. Army. This, along with the latest LRIP contract, makes us confident that GD will continue to deliver more of the Booker Vehicles to the U.S. Army in the near future, thereby boosting the revenue generation prospect of its Land Systems unit.
What Lies Ahead?
As more and more nations are investing heftily to modernize their military capabilities, the demand for more versatile and agile combat vehicles remains high. This might have prompted the Markets and Markets firm to project that the global armored vehicle market will witness a CAGR of 3.3% during 2024-2029.
Such solid growth opportunity offered by the armored vehicle market should significantly boost General Dynamics, with its Land Systems being a forerunner in manufacturing combat vehicles. Notably, this unit is a leading provider of tracked and wheeled military equipment. Some of its renowned products, other than M10 Booker, are Abrams Main Battle Tank, the Stryker and LAV family of wheeled and specialty vehicles, as well as the AJAX armored brigade of fighting vehicles.
GD apart, defense majors that are likely to gain from the expanding global armored vehicle market are BAE Systems (BAESY - Free Report) , Northrop Grumman (NOC - Free Report) and RTX Corp. (RTX - Free Report) .
BAE Systems designs, manufactures, upgrades and supports tracked, specialty-tracked, and wheeled and amphibious combat vehicles. Some of BAE Systems’ combat vehicles are the Armored Multi-Purpose Vehicle, CV90, CV90MkIV, CV90 IFV, etc.
BAE Systems boasts a long-term earnings growth rate of 12.2%. The consensus estimate for BAESY’s 2024 sales implies an improvement of 34.6% from the 2023 reported figure.
Northrop specializes in innovating low-cost, highly reliable precise weapons and ammunition for artillery and mortar systems, medium-caliber weapon platforms, battle tanks and individual soldiers. Notably, its XM913 50mm Bushmaster Chain Gun is currently in production and designed to be the primary weapon on the U.S. Army’s XM30 Mechanized Infantry Combat Vehicle.
Northrop’s long-term earnings growth rate is 8.7%. The consensus estimate for NOC’s 2024 sales implies an improvement of 4.6% from the 2023 reported figure.
RTX is currently part of Team Lynx, which is digitally designing America’s next-generation infantry fighting vehicle, XM30. Notably, the Lynx XM30 incorporates RTX’s weapons, sensors, artificial intelligence and system integration expertise.
RTX has a long-term earnings growth rate of 10.6%. The consensus estimate for RTX’s 2024 sales implies an improvement of 6.2% from the 2023 reported figure.
Price Performance
Shares of General Dynamics have surged 37.5% in the past year against the industry’s decline of 10.3%.
Image Source: Zacks Investment Research
Zacks Rank
General Dynamics currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.