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TXT to Supply Aerosonde VTOL UAS to Tantita Security Services

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Key Takeaways

  • TXT will deliver three ITAR-free Aerosonde Mk. 4.7 VTOL UAS under a contract with Arco Worldwide Services.
  • TXT's Aerosonde UAS offers multi-mission VTOL and fixed-wing options, backed by 700,000 flight hours.
  • TXT's Aerosonde systems operate globally and are deployed on more than 10 U.S. Navy ships.

Textron Inc.’s (TXT - Free Report) subsidiary, Textron Systems Corporation, recently revealed that it has secured a contract from Arco Worldwide Services to supply its Aerosonde vertical takeoff and landing (“VTOL”) unmanned aircraft system (“UAS”) to Tantita Security Services.

The deal involves the delivery of three Aerosonde Mk. 4.7 VTOL UAS in a fully International Traffic in Arms Regulations-free configuration, enabling easy export to international customers. These aircraft are expected to enhance security capabilities for protecting Nigeria’s critical oil and gas infrastructure.

The contract also includes options for training and additional aircraft to support planned capability expansion and builds on a previous Foreign Military Sale contract with Nigeria.

Overview of TXT’s Aerosonde UAS

TXT’s Aerosonde UAS delivers multi-mission capability, drawing on a proven family of systems that have logged more than 700,000 flight hours in some of the world’s most demanding environments. It has been deployed globally and currently operates on more than 10 U.S. Navy ships. The system supports a variety of payload configurations, offering both VTOL and fixed-wing options.

With its enhanced size, weight and power capacity, the UAS can perform day-and-night imaging, communications relay, signals intelligence and an additional customer-selected payload all within a single sortie.

Growth Potential for TXT and Other Defense Stocks

With rapid technological advancements, the UAS has increasingly become a crucial component of national defense strategies. Its demand has been rising recently due to low operational costs, zero risk to personnel and superior surveillance capabilities.

Per a report by the Mordor Intelligence firm, the military unmanned aerial vehicles (“UAV”) market is projected to witness a CAGR of 11.9% during 2025-2030. These positive industry trends are likely to provide significant growth opportunities for Textron in the years ahead.

Considering the solid growth opportunities offered by the global UAV market, other defense primes like The Boeing Company (BA - Free Report) , Lockheed Martin Corp. (LMT - Free Report) and Northrop Grumman Corp. (NOC - Free Report) should also benefit.

Boeing offers a comprehensive portfolio of UAS, delivering intelligent, persistent, and efficient solutions for diverse missions and customers worldwide. Its MQ-28 is an uncrewed collaborative combat aircraft that leverages advanced human-machine technology as a force multiplier. Designed to operate alongside existing military aircraft, it enhances operational effectiveness, endurance and survivability in highly contested environments.

BA boasts a long-term (three to five years) earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.26 billion, which calls for an increase of 31.2%.

Lockheed Martin provides cutting-edge autonomous systems to the U.S. military and allied forces, designed to fulfill the needs of the most demanding missions. The Stalker is a compact, quiet and operationally proven Group 2 UAS, offering exceptional long-endurance imaging capabilities in diverse contested environments and is actively employed by Special Forces globally.

LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which implies a jump of 4.8%.

Northrop Grumman is a leading provider of autonomous systems, offering a robust portfolio of UAVs. Some of its products include Global Hawk, MQ-4C Triton, Bat Unmanned Air System, and NATO Alliance Ground Surveillance.

NOC has a long-term earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which suggests an increase of 2.1%.

TXT Stock Price Movement

In the past three months, shares of Textron have risen 4.1% compared with the industry’s growth of 3.2%.

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TXT’s Zacks Rank

Textron 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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