The Boeing Company BA was recently awarded a modification contract to provide engine depot level maintenance and repair support for the P-8A Poseidon jets. The deal was awarded by Naval Air Systems Command, Patuxent River, MD.
Worth $ 131.7 million, the contract is expected to be completed in October 2022. The majority of work related to the deal will be performed in Atlanta, Georgia.
The contract will serve the US Navy, the Australian government and foreign military sales customers.
Importance of P-8A Poseidon
The P-8A Poseidon, a multi-mission maritime patrol aircraft, can perform anti-submarine and anti-surface warfare, intelligence, surveillance and reconnaissance, and search and rescue missions. Seven countries around the world have chosen the P-8A as their future maritime patrol aircraft, including South Korea and New Zealand. In February 2020, the British Royal Air Force (RAF) received its first P-8A aircraft, while in March 2021, Boeing won a $ 1.6 billion contract for the production and delivery of 11 P jets -8A to the US Navy and the Australian Government. .
Last month, the company won another contract worth $ 757 million for the production and delivery of 12 P-8A jets to Germany. These frequent inflows of contracts, including the most recent, indicate the global demand for this jet model.
What favors Boeing?
Among the various defense equipment manufactured by Boeing, the company’s strength lies in the development of combat-proven aircraft such as the P-8A Poseidon. In addition, Boeing has begun to develop military air-refueling and strategic lift aircraft for its military fixed-wing aircraft programs. Such notable developments are expected to fuel the growth of this aerospace giant, given the growing defense spending arrangements made by the current US administration.
As the largest jet maker in the United States, Boeing enjoys a steady stream of contracts for military jets and associated upgrades. The last contract won is an example.
According to a report by Mordor Intelligence, the global maritime patrol aircraft market is expected to experience a CAGR of 6.4% during the period 2021-2026. The growing threat of global terrorism and geopolitical issues as well as the need to replace aging maritime patrol aircraft with a new and advanced fleet will likely drive the demand for maritime patrol aircraft over the forecast period, thereby driving growth. of the market.
Notably, major industry players poised to benefit from growing demand for maritime aircraft include Boeing, Lockheed Martin LMT, Textron TXT and Northrop Grumman CNO.
Notably, Lockheed’s maritime patrol aircraft, the P-3 Orion, performs aerial, surface and underground patrols, as well as reconnaissance tasks over long periods of time and away from support facilities.
Textron’s King Air 260 jets offer the right balance of durability and economy of operation for maritime patrol missions.
Northrop Grumman’s MQ-4C Triton unmanned aircraft system provides real-time intelligence, surveillance and reconnaissance over vast ocean and coastal areas.
In one year, Boeing shares jumped 29.9% against an 8.7% drop in the industry.
Image source: Zacks Investment Research
Boeing currently wears a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
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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
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