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BAE Systems Secures a Contract for Armored Multi-Purpose Vehicles
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Key Takeaways
BAESY secured a modification contract to procure 240 Armored Multi-Purpose Vehicles.
The $198.4M award runs through May 31, 2028 and reflects strong AMPV demand.
BAESY's latest win follows a prior $754M AMPV award, reinforcing the vehicle's importance.
BAE Systems Inc.’s (BAESY - Free Report) Land and Armaments business unit recently secured a modification contract for procuring 240 Armored Multi-Purpose Vehicles (AMPVs). The award has been offered by the Army Contracting Command, Detroit Arsenal, MI.
Valued at $198.4 million, the contract is projected to be completed by May 31, 2028.
Growth Prospects for BAESY
Many countries are increasing their focus on strengthening national security, which has led to higher demand for modern defense equipment. Armored combat vehicles, such as AMPVs, play an important role in ground operations, so the need for advanced and reliable vehicles continues to grow.
BAE Systems is a well-known designer and manufacturer of both tracked and amphibious combat vehicles. In the United States, the company produces and upgrades several key platforms, including the Bradley Fighting Vehicle, M109 self-propelled howitzer, M88 recovery vehicle, in addition to the AMPV.
The AMPV is a next-generation, highly survivable vehicle designed to support the future requirements of the U.S. Army and its allies. It is being developed to replace the older M113 Family of Vehicles. The strong demand for AMPVs in the U.S. market is evident from BAE Systems’ $754 million award in March 2024 for procuring AMPVs. The latest contract further reinforces the vehicle’s importance and the solid interest it continues to attract.
Opportunities for Other Defense Stocks
Other defense majors that are likely to reap the benefits of the expanding armored vehicle market are discussed below:
Textron Inc. (TXT - Free Report) : The company designs, manufactures and sustains next-generation armored combat vehicles for the U.S. military, allied forces, special operations units, law enforcement and civilian agencies worldwide. Its COMMANDO family of vehicles delivers a proven blend of lethality, protection, mobility and durability, featuring a modern design that enhances troop safety while maintaining interior comfort during missions.
TXT boasts a long-term (three to five years) earnings growth rate of 10%. The Zacks Consensus Estimate for 2025 sales stands at $14.80 billion, which calls for an increase of 8.1%.
RTX Corporation (RTX - Free Report) : The company’s business unit, Raytheon, is working to meet the U.S. Army’s requirement for the next-generation XM30 combat vehicle. The XM30 is a modern, tracked armored platform designed for future battlefield challenges, offering superior troop protection and advanced technologies to help soldiers stay ahead of emerging threats.
RTX boasts a long-term earnings growth rate of 10.3%. The Zacks Consensus Estimate for 2025 sales stands at $87.04 billion, which implies a jump of 7.8%.
General Dynamics Corp. (GD - Free Report) : The company’s Land Systems division is a global leader in the design, engineering, production and sustainment of both tracked and wheeled military vehicles. Its M10 Booker is a highly lethal, survivable and mobile direct-fire combat vehicle that blends advanced technologies with proven battlefield design to counter threats across the multi-domain battlespace.
GD has a long-term earnings growth rate of 12.8%. The Zacks Consensus Estimate for 2025 sales stands at $51.97 billion, which indicates a rise of 8.9%.
BAESY Stock Price Movement
In the past year, BAE Systems shares have risen 53.8% compared with the industry’s growth of 23.7%.
Image: Bigstock
BAE Systems Secures a Contract for Armored Multi-Purpose Vehicles
Key Takeaways
BAE Systems Inc.’s (BAESY - Free Report) Land and Armaments business unit recently secured a modification contract for procuring 240 Armored Multi-Purpose Vehicles (AMPVs). The award has been offered by the Army Contracting Command, Detroit Arsenal, MI.
Valued at $198.4 million, the contract is projected to be completed by May 31, 2028.
Growth Prospects for BAESY
Many countries are increasing their focus on strengthening national security, which has led to higher demand for modern defense equipment. Armored combat vehicles, such as AMPVs, play an important role in ground operations, so the need for advanced and reliable vehicles continues to grow.
BAE Systems is a well-known designer and manufacturer of both tracked and amphibious combat vehicles. In the United States, the company produces and upgrades several key platforms, including the Bradley Fighting Vehicle, M109 self-propelled howitzer, M88 recovery vehicle, in addition to the AMPV.
The AMPV is a next-generation, highly survivable vehicle designed to support the future requirements of the U.S. Army and its allies. It is being developed to replace the older M113 Family of Vehicles. The strong demand for AMPVs in the U.S. market is evident from BAE Systems’ $754 million award in March 2024 for procuring AMPVs. The latest contract further reinforces the vehicle’s importance and the solid interest it continues to attract.
Opportunities for Other Defense Stocks
Other defense majors that are likely to reap the benefits of the expanding armored vehicle market are discussed below:
Textron Inc. (TXT - Free Report) : The company designs, manufactures and sustains next-generation armored combat vehicles for the U.S. military, allied forces, special operations units, law enforcement and civilian agencies worldwide. Its COMMANDO family of vehicles delivers a proven blend of lethality, protection, mobility and durability, featuring a modern design that enhances troop safety while maintaining interior comfort during missions.
TXT boasts a long-term (three to five years) earnings growth rate of 10%. The Zacks Consensus Estimate for 2025 sales stands at $14.80 billion, which calls for an increase of 8.1%.
RTX Corporation (RTX - Free Report) : The company’s business unit, Raytheon, is working to meet the U.S. Army’s requirement for the next-generation XM30 combat vehicle. The XM30 is a modern, tracked armored platform designed for future battlefield challenges, offering superior troop protection and advanced technologies to help soldiers stay ahead of emerging threats.
RTX boasts a long-term earnings growth rate of 10.3%. The Zacks Consensus Estimate for 2025 sales stands at $87.04 billion, which implies a jump of 7.8%.
General Dynamics Corp. (GD - Free Report) : The company’s Land Systems division is a global leader in the design, engineering, production and sustainment of both tracked and wheeled military vehicles. Its M10 Booker is a highly lethal, survivable and mobile direct-fire combat vehicle that blends advanced technologies with proven battlefield design to counter threats across the multi-domain battlespace.
GD has a long-term earnings growth rate of 12.8%. The Zacks Consensus Estimate for 2025 sales stands at $51.97 billion, which indicates a rise of 8.9%.
BAESY Stock Price Movement
In the past year, BAE Systems shares have risen 53.8% compared with the industry’s growth of 23.7%.
Image Source: Zacks Investment Research
BAESY’s Zacks Rank
BAE Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.