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Leidos to Upgrade & Enhance Kazakhstan's Air Traffic Control System

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Key Takeaways

  • Leidos will upgrade Kazakhstan's air traffic control system under a 19-year agreement.
  • The deal includes deploying SkyLine-X to boost safety, surveillance and efficiency.
  • Leidos expands its international air traffic management footprint through Kazakhstan's upgrade.

Leidos Holdings, Inc. (LDOS - Free Report) recently entered into an agreement with Kazaeronavigatsia to upgrade the air traffic control system, aiming to support the substantial growth anticipated in Kazakhstan’s aviation sector.

The Kazakhstan government projects that by 2030, annual passenger traffic will rise to 26 million from nearly 15 million, the civil aircraft fleet will more than double, and 81 new international destinations will be added.

Benefits of LDOS’ Deal

Leidos will enhance systems that enable air traffic controllers to safely manage aircraft both on the ground and in the air. Along with a hardware upgrade, the company will deploy its SkyLine-X Air Traffic Management system, offering controllers comprehensive surveillance capabilities, advanced safety features and more efficient operations.

The agreement spans a 19-year period and covers work at four control centers and 21 towers nationwide. This upgrade strengthens Kazakhstan’s safe and reliable air traffic system, enabling controllers to manage the country’s airspace with greater confidence.

Leidos has extensive experience in safely overseeing flights across U.S. and international airspace. The company is ideally equipped to modernize Kazakhstan’s air traffic control infrastructure and support the country’s evolving aviation needs.

Leidos’ Proven Expertise in Air Traffic Management

For more than 50 years, Leidos has tackled the complex and unique challenges of air traffic management by delivering safe, efficient, and secure systems and technologies. Its solutions help ensure the safe travel of more than four million passengers daily.

Through its SkyLine Air Traffic Management system, Leidos assists nations across four continents in enhancing safety, boosting efficiency and optimizing air traffic control performance.

Through the development of the Common Automation Platform, Leidos integrates advanced technologies, including AI, hybrid cloud architecture, data mesh and microservices to streamline air traffic control operations. This approach provides unmatched efficiency and real-time data insights, enhancing overall aviation safety and performance.

Growth Potential

Per a February 2025 report by the Airports Council International World, global passenger traffic will witness a CAGR of 3.4% during the 2024-2043 period. As expanding air travel demands better infrastructural support, the need for more modernized and efficient air traffic management is likely to rise. This should benefit companies like Leidos, which provide effective air traffic management solutions.

Other stocks with established expertise in air traffic management are discussed below:

The Boeing Company (BA - Free Report) : The company offers a versatile suite of Airspace Optimization services, capable of handling everything from single procedures to complete air traffic management systems. It works closely with air traffic control to ensure that procedures function effectively in real-world scenarios across all Flight Management System and Global Positioning System platforms globally.

BA boasts a long-term (three to five years) earnings growth rate of 20.9%. The Zacks Consensus Estimate for 2025 sales stands at $85.66 billion, which calls for an increase of 28.8%.

RTX Corporation (RTX - Free Report) : The company’s business unit, Raytheon UK, provides air traffic management systems in more than 45 countries. Its advanced Mode S MSSR system is a detection radar that combines indigenous, state-of-the-art surveillance technologies, delivering reliable, cutting-edge hardware to air traffic operators worldwide.

RTX’s long-term earnings growth rate is 9.1%. The Zacks Consensus Estimate for 2025 sales stands at $85.69 billion, which indicates a rise of 6.1%.

Leonardo DRS, Inc. (DRS - Free Report) : The company’s Air Traffic Management solutions for both manned and uncrewed aircraft enable comprehensive control of every stage of flight and the management of ground operations through integrated, modular systems.

DRS has a long-term earnings growth rate of 17.3%. The Zacks Consensus Estimate for 2025 sales is pegged at $3.59 billion, which suggests an increase of 10.9%.

LDOS Stock Price Movement

In the past six months, shares of Leidos have gained 41.9% compared with the industry’s growth of 6.2%.

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Leidos’ Zacks Rank

LDOS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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