Boeing (BA) Secures $278M Deal to Aid F/A 18 Aircraft Program
The Boeing Company BA recently clinched a contract involving the F/A 18 aircraft program. The award has been offered by the Defense Logistics Agency Aviation, Philadelphia, PA.
Valued at $278 million, this contract is projected to get completed by Aug 8, 2027. Per the terms, Boeing will procure aircraft consumable parts for F/A-18 jets.
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. 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 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. Meanwhile, 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, wherein the combat aircraft enjoys one of the dominating positions. Boeing, being the largest aircraft manufacturer in the United States, thus enjoys a dominant position in the combat aircraft market.
Per a Mordor Intelligence report, the global combat aircraft market is expected to witness a CAGR of 2.5% during the 2021-2026 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’s second-quarter 2022 earnings surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The company has a four-quarter average earnings surprise of 64.46%.
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’s second-quarter 2022 earnings surpassed the Zacks Consensus Estimate of $6.03 by 0.5%. The company has a four-quarter average earnings surprise of 3.92%.
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’s second-quarter 2022 earnings surpassed the Zacks Consensus Estimate of 88 cents by 13.6%. The company has a four-quarter average earnings surprise of 11.28%.
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