Back to top

Image: Bigstock

Boeing Wins $208M Deal for Developing F-15 Legion IRST Pods

Read MoreHide Full Article

The Boeing Company (BA - Free Report) recently won a $208.3-million contract for the manufacturing of F-15 Legion Pod infrared search-and-track (IRST) pods. The contract was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio.

Details of the Deal

Per the terms of the deal, Boeing will conduct engineering, manufacturing, integration, testing and deployment of F-15 Legion Pod IRST Pods. Work related to the deal will be performed in St. Louis, MI; and Orlando, FL; and is expected to be completed by Nov 30, 2020.

Boeing will utilize fiscal 2017 and 2018 research and development funds; fiscal 2018 procurement funds; fiscal 2018 working capital funds; and other types of operations, maintenance, and  research and development funds for completing the task.

A Brief Note on Legion Pod and IRST Pods

A Legion Pod is a multi-function sensor system that supports collaborative targeting operations in radar-denied environments, which is set to serve as the next sensor system of choice for fixed-wing aircraft. Legion Pod’s baseline configuration includes an IRST21 sensor and advanced processor for high-fidelity detection and tracking of air-to-air targets.

On the other hand, IRST pods enable the host aircraft to acquire and track airborne targets through the heat generated by the jet engine and aerodynamic heating of the airframe, as it travels through the atmosphere. Being a passive system, the target aircraft does not know that it is being tracked.

What’s Favoring Boeing?

Boeing is one of the major players in the defense business and stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. In second-quarter 2018, revenues at its Boeing Defense, Space & Security (BDS) segment, which manufactures the F-15 Strike Eagle fighter jets along with other military jets, increased 9% year over year to $5.59 billion.

The increase in year over year sales is predominant as the company has been winning a large number of contracts from the Pentagon for long, courtesy of its proven expertise in aerospace programs and also programs related to aircraft components and parts.  We believe this latest contract involving the manufacturing of F-15 Legion Pod IRST pods will enhance the value of the combat-proven F-15 jets in the global aircraft market, thereby ushering in more inflow of contracts for Boeing.

Meanwhile, toward the end of June 2018, the U.S. Senate approved the fiscal 2019 defense budget that provisions for major war fighting investments worth $21.7 billion for aircraft. Boeing, being the largest aircraft manufacturer in the United States, should be a significant beneficiary from the proposed budget.

Price Movement

Boeing’s stock has gained 47.3% in the last 12 months compared with the industry’s growth of 22.9%. The outperformance was primarily led by robust worldwide demand for its commercial aircraft and military jets.



Zacks Rank & Stocks to Consider

Boeing currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the same sector are Aerojet Rocketdyne Holdings , Engility Holdings and Huntington Ingalls Industries (HII - Free Report) .

While Aerojet Rocketdyne Holdings sports a Zacks Rank #1 (Strong Buy), Engility Holdings and Huntington Ingalls carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aerojet Rocketdyne came up with an average positive earnings surprise of 9.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 30.9% to $1.27 in the last 90 days.

Engility Holdings delivered an average positive earnings surprise of 19% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 16.8% to $2.02 in the last 90 days.

Huntington Ingalls Industries came up with an average positive earnings surprise of 9.48% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 3.7% to $17.24 in the last 90 days.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


The Boeing Company (BA) - $25 value - yours FREE >>

Huntington Ingalls Industries, Inc. (HII) - $25 value - yours FREE >>

Published in