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Boeing to Expand Facility in Mississippi & Support Aerosystem Demand

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The Boeing Company’s (BA - Free Report) business unit, Aurora Flight Sciences, commenced a major expansion of its manufacturing plant in Columbus, MS, next to the Golden Triangle Regional Airport. The unit specializes in producing cutting-edge composite assemblies and parts for both military and commercial aircraft.

The unit also collaborates with Mississippi State University and East Mississippi Community College to enhance workforce development, higher education and research in advanced manufacturing. Under the project, Aurora's expanding aerosystem business will be supported by the addition of new automation, robotics and non-destructive inspection technologies, as well as a 50,000-square-foot expansion and renovation of 40,000 square feet of existing space.

The expansion of the facility will support the manufacture of MQ-25 Stingray composite skins for Boeing, and an expanded amount of composite components for executive aircraft will be supported. The plant will also produce components for NASA's X-66 sustainable flying demonstration aircraft, among other things.

Rising Demand for Boeing’s Products
 

Countries worldwide increasing their defense budgets in response to modernization needs, geopolitical tensions and regional conflicts have led to higher demand for advanced military aircraft components.

Per a report by Econ Market Research, the Global Aerospace and Defense Materials market is projected to reach nearly $30.01 billion by 2032, with a CAGR of 4.8% between 2024 and 2032. Such growth opportunities offered by the aforementioned market should bode well for Boeing in the coming years.

Boeing's Everett, WA, manufacturing plant is a major facility for assembling military and commercial aircraft. It has the largest manufacturing building in the world, producing the 747, 767, 777 and 787 airplanes.

The Auburn, WA-based Machine Fabrication Manufacturing Business Unit manufactures a range of Boeing airplane parts, including fuselage, landing gear and wings. It manufactures 22,000 components on average every month and more than 1,000 distinct products.

Opportunities for BA’s Peers
 

Aerospace companies that are likely to reap the benefits of the growing Aerospace and Defense Materials market are as follows:  

Airbus Group (EADSY - Free Report) : Its production center in Columbus, MS, produces the H125 commercial helicopter and the U.S. Army's UH-72A Lakota Light Utility Helicopter. The plant handles the assembly and customization of other Airbus Helicopters models and manufactures components for use on new-production helicopters.

Airbus has a long-term (three to five years) earnings growth rate of 13.9%. The Zacks Consensus Estimate for EADSY’s 2024 sales calls for an improvement of 7.2% from the prior-year reported figure.

Hexcel Corporation (HXL - Free Report) : Its West Valley City is home to the largest carbon fiber and matrix manufacturing plant located at Salt Lake City, UT, which is a leading worldwide supplier of carbon fiber and prepregs, which are used in aircraft components and structures.

Hexcel boasts a long-term earnings growth rate of 21.9%. The Zacks Consensus Estimate for HXL’s 2024 sales implies an improvement of 7.6% from the prior-year reported figure.

Lockheed Martin Corp. (LMT - Free Report) : Its Greenville site in South Carolina is the home of the F-16 Fighting Falcon production line and provides nose-to-tail aircraft modification, maintenance, repair and overhaul services for both military and civil aircraft.  

Lockheed Martin boasts a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales suggests an improvement of 5.3% from the prior-year reported figure.

BA Stock Price Movement

In the past month, shares of Boeing have risen 2.2% compared with the industry’s growth of 4.4%.

Zacks Investment Research
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.

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