Boeing (BA) Wins $392M Contract for CH-47F Renew Aircraft
Boeing (BA) is going to renew up to five CH-47F jets for the U.S. Army.
The Boeing Company BA recently secured a contract for up to five CH-47F renew aircraft. The U.S. Army Contracting Command, Redstone Arsenal, AL awarded the deal.
Valued at $391.4 million, the contract is expected to get completed by Sep 30, 2025.
Importance of CH-47 Chinook
In recent times, military rotorcrafts like the Chinook CH-47 are being used in line with the comprehensive mission parameters, thanks to the integration of advanced and multiple capabilities installed in them. Not only the U.S. Army but this heavy-lift helicopter is also being deployed by major militaries across the globe, courtesy of its combat-proven expertise to perform complex and tactical missions, which include air transportation of troops, weapons, and internal and external cargo. Its growth on a global scale is evident as militaries of nations such as the United Kingdom, The Netherlands, Spain, Australia, Japan, South Korea, the United Arab Emirates and others use this multi-mission aircraft.
The fact that more than 950 Chinooks are currently in service in 20 countries reflects the solid demand enjoyed by this helicopter, with the aforementioned contract being a bright example of the same.
A rapid increase in terror attacks has compelled nations to strengthen their arsenal and bump up defense budgets. With the United States being home to some of the largest manufacturers of combat jets, the nation’s prime defense contractors enjoy a steady flow of contracts from both Pentagon and its foreign allies. With military jets and helicopters constituting a major portion of a nation’s armaments, there is a steady flow of contracts for these weaponries. The latest contract win by Boeing bears a testament to this.
Per a report by the Mordor Intelligence firm, the global military rotorcraft market is expected to witness a CAGR of 3% during the 2020-2025 period.
Notably, Airbus is one of the world's largest suppliers of advanced military helicopters. Some of the significant helicopters manufactured by Airbus are H125M, H135M and H145M.
Lockheed’s Sikorsky division is a well-known manufacturer of combat-proven military helicopters like BlackHawk, CH-53K, MH-60R and many more.
Textron’s Bell unit is a renowned manufacturer of military helicopters like AH-1Z, UH-1Y, V-22 and a few more.
Shares of Boeing have gained 40.8% in the past year against the industry’s decline of 10.5%.
Image Source: Zacks Investment Research
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>
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
Textron Inc. (TXT): Free Stock Analysis Report
Airbus Group (EADSY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research