Airbus SE EADSY recently announced that it has successfully shipped the first of up to 82 H145M helicopters to Germany within a year of signing the contract. The duties of the multi-role military helicopter include light assault, special forces operations, reconnaissance and training.
EADSY’s Deal With German Armed Forces
In December 2023, the Bundeswehr (German Armed Forces) and Airbus Helicopters inked a contract to acquire up to 82 multi-role H145M helicopters (62 firm orders plus 20 options), the largest order ever placed for the H145M.
This contract also includes seven years of support and services, providing an efficient transition into service and support. The German Army will get 57 helicopters, with the Luftwaffe's special forces receiving five. The H145M will serve the German Armed Forces' vital operations and be a real multi-mission asset.
EADSY’s Expertise in Military Helicopters
As nations are upgrading their defense capabilities, expenditures on cutting-edge defense equipment and ammunition have been rising quickly. Growing expenditures on military helicopters, which are essential for air combat operations, are another example. As a leading producer of combat helicopters, Airbus has been receiving a constant stream of orders from all around the globe.
More than 140 armed forces worldwide rely on Airbus for its expertise to produce high-quality multi-role helicopters. These copters are able to fulfill a wide range of operational military roles, such as armed reconnaissance, utility, attack, naval, maritime and special operations.
In particular, EADSY's twin-engine H145M has the critical capability of delivering soldiers and materials fast with minimal delay and immediately applying firepower to neutralize opposing forces. It also provides support for friendly troops in conflict and is great for gathering, interpreting and utilizing critical information. This high-performance, adaptable, durable and reliable helicopter may be outfitted with a wide range of equipment, giving military pilots exceptional mission flexibility.
Stable Demand for EADSY’s Military Helicopters
Amid rising military conflicts, terrorism and border disputes, these combat-proven helicopters play a critical role in a country's security system.
This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 2.9% for the military helicopter market during the 2024-2030 period. Such growth opportunities offered by the aforementioned market should bode well for Airbus.
EADSY’s product portfolio consists of varied combat helicopters, such as the H125M, H160M, H175M, H215M, H225M, Tiger and NH90 and a few more. These enjoy solid demand in the global military helicopter market, with some 19,000 helicopters delivered across 150 nations.
Opportunities for EADSY’s Peers
Other defense companies that are expected to enjoy the perks of the expanding military helicopter market have been discussed below:
Boeing BA: The company’s helicopters are renowned for their leading-edge, ready and relevant solutions that deliver proven capabilities. Boeing’s product portfolio includes combat helicopters and rotorcraft like the H-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.
Boeing has a long-term (three to five years) earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates an improvement of 23.4% from the prior-year quarter’s reported figure.
Textron TXT: Its Bell business segment supplies advanced military helicopters and provides parts and support services to the U.S. Government and military customers outside the United States. Its portfolio of combat helicopters includes Bell 412M, Bell 429M, Bell 407M, Bell 505M and a few more rotorcraft.
TXT boasts a long-term earnings growth rate of 10.1%. The consensus estimate for TXT’s 2024 sales indicates year-over-year growth of 1.2%.
Lockheed Martin LMT: Its Sikorsky business unit provides military and rotary-wing aircraft to all five branches of the U.S. armed forces, along with military services and commercial operators in 40 nations. Some of LMT’s renowned products are Armed Black Hawk, CH-53K, MH-60R SEAHAWK, Raider X, S-97 Raider, BLACK Hawk, etc.
Lockheed boasts a long-term earnings growth rate of 4.6%. The consensus estimate for LMT’s 2024 sales indicates an improvement of 5.4% from the 2023 reported figure.
EADSY Stock Price Movement
In the past month, Airbus shares have declined 3.5% compared with the industry’s fall of 4%.
Image Source: Zacks Investment Research
EADSY’s Zacks Rank
Airbus currently carries a Zacks Rank #4 (Sell).
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Today, See These 5 Potential Home Runs >>The Boeing Company (BA) : Free Stock Analysis Report
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Airbus Group (EADSY) : Free Stock Analysis Report
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