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Boeing Secures a $2.8B Contract to Aid the Evolved Strategic Satellite
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Key Takeaways
Boeing won a $2.84B deal to develop four ESS satellites by December 2033 for Space Systems Command.
BA will perform contract work in El Segundo, CA, under the Evolved Strategic Satellite program.
BA's deep space expertise and rising satellite demand are boosting its presence in defense space tech.
The Boeing Company ((BA - Free Report) ) recently clinched a contract involving the Evolved Strategic Satellite (ESS) program. The award has been provided by the Space Systems Command, Military Communication and Positioning, Navigation and Timing, Los Angeles Air Force Base, CA.
Details of BA’s Deal
Valued at $2.84 billion, the contract is expected to be completed by Dec. 31, 2033. Per the terms of the deal, BA will develop and produce four ESS space vehicles, which will provide increased capacity, flexibility, reliability and resilience compared with the strategic communications satellites currently in orbit. The work related to this contract will be performed in El Segundo, CA.
What’s Favoring BA Stock?
In the modern era of space exploration, factors like rapid technological advancements, the growing demand for satellite deployment, increasing commercial space activities and rising investments in space infrastructure are fueling the growth of the space launch services market.
This must have prompted the Mordor Intelligence firm to estimate that the global space launch vehicles market will witness a compound annual growth rate of 18.4% during the 2025-2030 time period.
Such robust market growth prospects are expected to benefit Boeing in the form of space technology-involved contracts like the latest one. BA has decades of experience supporting major U.S. space missions while actively contributing to both government and commercial projects. Notably, the ESS will provide persistent coverage to strategic warfighters worldwide. Moreover, Boeing's CST-100 Starliner spacecraft is a key part of returning human launch capabilities to U.S. soil.
Opportunities for Other Space Stocks
Other companies that are expected to enjoy the perks of the expanding global space launch vehicles market have been discussed below.
Northrop Grumman Corporation ((NOC - Free Report) ): It is one of the key players in the space industry, providing launch vehicles and propulsion systems through its space systems division. The company's innovations in rocket technology and satellite deployment make it a significant beneficiary of the growing demand for space services.
The company’s long-term (three to five years) earnings growth rate is 3.3%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.8%.
Rocket Lab USA Inc. ((RKLB - Free Report) ): Rocket Lab, with its advanced Electron rocket and expanding capabilities in small satellite launches, has already established itself as a prominent launcher in the space services market. It is currently developing the Neutron rocket, aimed at supporting larger payloads, thereby boosting its competitiveness in the medium-lift launch segment.
The Zacks Consensus Estimate for RKLB’s 2025 sales indicates year-over-year growth of 32.8%. The consensus estimate for 2025 earnings indicates year-over-year growth of 29%.
Lockheed Martin Corporation ((LMT - Free Report) ): Its space business segment plays a key role in areas such as satellite technology, missile warning systems and deep space exploration. Lockheed Martin built NASA’s first Mars lander and has been part of every NASA Mars mission since.
The company has a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.7%.
BA Stock’s Price Movement
BA shares have risen 27.3% in the past six months compared with the industry’s 22% growth.
Image: Bigstock
Boeing Secures a $2.8B Contract to Aid the Evolved Strategic Satellite
Key Takeaways
The Boeing Company ((BA - Free Report) ) recently clinched a contract involving the Evolved Strategic Satellite (ESS) program. The award has been provided by the Space Systems Command, Military Communication and Positioning, Navigation and Timing, Los Angeles Air Force Base, CA.
Details of BA’s Deal
Valued at $2.84 billion, the contract is expected to be completed by Dec. 31, 2033. Per the terms of the deal, BA will develop and produce four ESS space vehicles, which will provide increased capacity, flexibility, reliability and resilience compared with the strategic communications satellites currently in orbit. The work related to this contract will be performed in El Segundo, CA.
What’s Favoring BA Stock?
In the modern era of space exploration, factors like rapid technological advancements, the growing demand for satellite deployment, increasing commercial space activities and rising investments in space infrastructure are fueling the growth of the space launch services market.
This must have prompted the Mordor Intelligence firm to estimate that the global space launch vehicles market will witness a compound annual growth rate of 18.4% during the 2025-2030 time period.
Such robust market growth prospects are expected to benefit Boeing in the form of space technology-involved contracts like the latest one. BA has decades of experience supporting major U.S. space missions while actively contributing to both government and commercial projects. Notably, the ESS will provide persistent coverage to strategic warfighters worldwide. Moreover, Boeing's CST-100 Starliner spacecraft is a key part of returning human launch capabilities to U.S. soil.
Opportunities for Other Space Stocks
Other companies that are expected to enjoy the perks of the expanding global space launch vehicles market have been discussed below.
Northrop Grumman Corporation ((NOC - Free Report) ): It is one of the key players in the space industry, providing launch vehicles and propulsion systems through its space systems division. The company's innovations in rocket technology and satellite deployment make it a significant beneficiary of the growing demand for space services.
The company’s long-term (three to five years) earnings growth rate is 3.3%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.8%.
Rocket Lab USA Inc. ((RKLB - Free Report) ): Rocket Lab, with its advanced Electron rocket and expanding capabilities in small satellite launches, has already established itself as a prominent launcher in the space services market. It is currently developing the Neutron rocket, aimed at supporting larger payloads, thereby boosting its competitiveness in the medium-lift launch segment.
The Zacks Consensus Estimate for RKLB’s 2025 sales indicates year-over-year growth of 32.8%. The consensus estimate for 2025 earnings indicates year-over-year growth of 29%.
Lockheed Martin Corporation ((LMT - Free Report) ): Its space business segment plays a key role in areas such as satellite technology, missile warning systems and deep space exploration. Lockheed Martin built NASA’s first Mars lander and has been part of every NASA Mars mission since.
The company has a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.7%.
BA Stock’s Price Movement
BA shares have risen 27.3% in the past six months compared with the industry’s 22% growth.
Image Source: Zacks Investment Research
BA’s Zacks Rank
BA currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.