UK markets close in 4 hours 40 minutes
  • FTSE 100

    7,508.23
    -27.83 (-0.37%)
     
  • FTSE 250

    20,221.67
    -114.74 (-0.56%)
     
  • AIM

    927.71
    -3.83 (-0.41%)
     
  • GBP/EUR

    1.1894
    +0.0005 (+0.04%)
     
  • GBP/USD

    1.2096
    +0.0001 (+0.01%)
     
  • BTC-GBP

    19,654.55
    -319.70 (-1.60%)
     
  • CMC Crypto 200

    566.24
    -5.67 (-0.99%)
     
  • S&P 500

    4,305.20
    +8.06 (+0.19%)
     
  • DOW

    34,152.01
    +239.61 (+0.71%)
     
  • CRUDE OIL

    87.09
    +0.56 (+0.65%)
     
  • GOLD FUTURES

    1,787.60
    -2.10 (-0.12%)
     
  • NIKKEI 225

    29,222.77
    +353.86 (+1.23%)
     
  • HANG SENG

    19,922.45
    +91.93 (+0.46%)
     
  • DAX

    13,789.76
    -120.36 (-0.87%)
     
  • CAC 40

    6,565.20
    -27.38 (-0.42%)
     

Boeing (BA) Wins $44M Deal to Support F/A-18 E/F & E/A-18G Jets

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The Boeing Company BA recently clinched a contract involving the F/A-18 E/F and E/A-18G aircraft. The deal has been offered by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.

Details of the Deal

Valued at $43.8 million, the contract is scheduled to be completed by December 2025. Per the terms of the deal, Boeing will procure 72 Processor for incorporation of the Distributed Targeting Processor-Network System in the F/A-18 E/F and E/A-18G aircraft.

Work related to this deal will be carried out in St. Louis, MO.

Significance of F/A-18 Jets

Boeing’s F/A-18 Block III Super Hornet is a twin-engine, supersonic, all-weather multirole fighter jet, which is capable of performing virtually every mission in the tactical spectrum. EA-18G is a variant of the combat-proven F/A-18F Super Hornet. Boeing believes that the Super Hornet is the most cost-effective aircraft in the U.S. tactical aviation fleet, costing less per flight hour than any other tactical aircraft in the U.S. forces inventory.

F/A-18 Super Hornet combat aircraft has emerged as the leading choice of weapon for militaries across the world. The Royal Australian Air Force and the Kuwait Air Force, apart from the U.S. Navy, operate these fighter aircraft in large numbers. Furthermore, nations like Canada, Finland, Switzerland and Spain currently have Boeing’s Super Hornet in their arsenal.

The F/A-18 fleet enjoys strong demand in the aircraft market, which is further evident from the latest contract win.

Growth Prospects

With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Developed nations like the United States and Europe have already been leading the defense market. With the United States being the largest weapons exporter worldwide, the nation has been spending amply on defense products, including combat aircraft. Boeing, being the largest aircraft manufacturer in the country, thus enjoys a dominant position in the combat aircraft market.

Per a Mordor Intelligence report, the global military aircraft market is expected to witness a CAGR of more than 4% during the 2022-2031 time period, with North America constituting the largest share of this market. Such growth can be attributed to a rise in global threats and geopolitical instabilities, and increased spending on defense.

These projections should benefit Boeing along with other U.S.-based combat jet manufacturers like Northrop Grumman NOC, Lockheed Martin LMT and Textron TXT.

Lockheed’s Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include F-35, C-130 Hercules, F-16 Fighting Falcon and F-22 Raptor jets.

Lockheed Martin boasts a long-term earnings growth rate of 6.1%. The company has a four-quarter average earnings surprise of 63.25%.

Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance, and aircraft self-protection systems that enable warfighters to accomplish missions anytime, anywhere and under any conditions.

Northrop Grumman boasts a long-term earnings growth rate of 5.7%. The Zacks Consensus Estimate for NOC’s 2022 sales implies an improvement of 2.6% from the 2021 reported figure.

Textron’s business unit, Textron Aviation Defense designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include Beechcraft T-6C trainer and AT-6 Wolverine.

Textron boasts a long-term earnings growth rate of 12.7%. The Zacks Consensus Estimate for TXT’s 2022 sales indicates an improvement of 8.2% from the 2021 reported figure.

Price Movement

Shares of Boeing have lost 41.2% in the past 12 months compared with the industry’s decline of 40.8%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank

Boeing currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
Textron Inc. (TXT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting