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Boeing Secures Contract to Support F/A-18 E/F & EA-18G Aircraft

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Key Takeaways

  • BA stock has climbed 31.1% over six months, outpacing the industry's 17.6% gain.
  • Boeing's advanced F/A-18 and EA-18G jets remain vital assets in the U.S. Navy's combat capabilities.
  • BA produces key military jets like the F-15EX, P-8, T-7A Red Hawk and C-17 Globemaster III.

The Boeing Company (BA - Free Report) recently clinched a deal to support its F/A-18 E/F and EA-18G aircraft. The award has been provided by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.

BA’s New Deal: Details to Note

The contract, valued at $37.4 million, is slated to be completed by March 2027. According to the agreement, Boeing will repair 109 horizontal stabilizers used on the F/A-18 E/F and EA-18G aircraft.

The work related to this deal will be carried out in Jacksonville, FL, and St. Louis, MO.

Boeing’s Growth Potential

Rising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their defense spending on combat-proven jets, which constitute an integral part of their defense structure, over the past decade.

This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 4.7% for the global military aviation market during the 2025-2030 period. These projections indicate significant growth opportunities for prominent aircraft manufacturers like Boeing, with its military jet portfolio consisting of combat-proven aircraft, such as the F-15EX, P-8, T-7A Red Hawk and C-17 Globemaster III.

In particular, Boeing’s F/A-18 Block III Super Hornet provides cutting-edge, next-generation multi-role strike fighter capabilities and serves as the backbone of the U.S. Navy carrier air wing. The company’s EA-18G Growler is the most advanced airborne electronic attack platform and the only one currently in production. It offers improved survivability and electronic protection for ground, air and maritime combat troops.

Opportunities for Other Stocks

Other aerospace companies that are likely to benefit from the expanding global military aviation market are discussed below:

Northrop Grumman Corp. (NOC - Free Report) : It is a leading provider of manned and unmanned air systems. It builds some of the world’s most advanced aircraft, like the E-2C Hawkeye 2000, E-2D Advanced Hawkeye, F-5 Tiger Fighter Jet and many more.

Northrop has a long-term (three to five years) earnings growth rate of 3.3%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.8%.

Lockheed Martin Corp. (LMT - Free Report) : The company is among the leaders in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft, such as the F-35 Lightning II, F-21, F-22 Raptor and F-16 Fighting Falcon.

Lockheed boasts a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for LMT’s 2025 sales implies an improvement of 4.7%.

Embraer S.A. (ERJ - Free Report) : The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano, P600 AEW&C and the C-390 Millennium military multi-mission aircraft.

The Zacks Consensus Estimate for ERJ’s 2025 sales indicates growth of 15.9%. The company delivered an average earnings surprise of 150.60% in the last four quarters.

BA Stock Price Movement

In the past six months, shares of Boeing have risen 31.1% compared with the industry’s growth of 18.1%.

Zacks Investment Research
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BA’s 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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