The Boeing Co. (BA - Free Report) has won a modification contract from the U.S. Air Force (USAF) to manufacture QF-16 full-scale aerial target (“FSAT”) Lot 5A.
The contract is valued at $24.7 million. It was awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.
Per the contract, Boeing will provide 18 QF-16 FSATs and 18 related four-year warranties for the QF-16 drone-peculiar equipment program.
Work is scheduled to be completed by Apr 27, 2027 and will be executed in St. Louis, MO. The contract will use fiscal 2017 procurement funds.
What’s QF-16 FSAT?
QF-16 FSAT, which has been developed by Boeing for the USAF, comprises a modified F-16 airframe that incorporates a universal remote auto pilot, auto-throttle, and peculiar support equipment with enhanced fault-isolation capabilities. Its other features include − visual augmentation system (VAS), FTS, command telemetry system (CTS), VSS, and payload control system (PCS).
Additionally, it boasts afterburning turbofan engines by United Technologies Corporation’s (UTX - Free Report) unit, Pratt & Whitney, or General Electric Company (GE - Free Report) . The FSAT allows the U.S. war fighters to assess newly developed weapons and tactics.
Moreover, replacing the QF-4 Aerial Target, QF-16 introduces fourth-generation fighter capabilities to the aerial target mission.
Boeing witnesses a steady flow of contracts from the Pentagon as well as international customers. It is one of the major players in the defense business. Its defense business stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog.
Recently, the company won a contract, worth $371.2 million, for supplying performance-based supply chain support for the F-15 platform. This contract was awarded by the Defense Logistics Agency Aviation, Philadelphia, PA. (Read more: Boeing Wins $371M Contract to Support F-15 Platform)
Again, it secured a modification contract from the U.S. Army for supplying lot 7-11 of AH-64E Apache attack helicopters to the government of Saudi Arabia. Valued at $3.28 billion, this foreign military sales (FMS) contract was awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL. (Read more: Boeing Inks $3.3B FMS Deal to Supply AH-64E Apache Copters)
Shares of Boeing have increased 33.2% over the last 12 months, outperforming the Zacks categorized Aerospace–Defense industry’s gain of 24.3%. This could be because the company’s strong balance sheet and cash flows provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions. The company also poses strong competition to its peer − General Dynamics Corp. (GD - Free Report) .
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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