The Boeing Company BA recently clinched a contract for the production of the F-15 Eagle Passive Active Warning Survivability System (“EPAWSS”). The deal is expected to be completed by Dec. 31, 2030.
Details of the Deal
Valued at $615.8 million, the contract has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH. Per the terms, Boeing will provide Group A and B kits, system engineering program management and interim contractor support lay-in material. The work related to this project will be carried out in St. Louis, MO, and Nashua, NH.
Importance of F-15 Jets
The F-15 jets, developed by Boeing, are renowned for their speed, agility and advanced systems. They are designed as multirole fighters and are capable of achieving unmatched air superiority and precision strike capabilities. These jets feature state-of-the-art avionics, electronic warfare systems and radar, enabling them to excel in complex combat scenarios.
F-15EX is the most advanced version of the F-15, with digital fly-by-wire flight controls, a new electronic warfare system, an all-glass digital cockpit and the latest mission systems and software capabilities.
What’s Favoring BA Stock?
Rising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their defense spending on combat-proven jets, which constitute an integral part of their defense structure.
This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 5.2% for the global military aviation market during the 2025-2030 period.
Such solid market prospects offer growth opportunities for Boeing. Its portfolio includes well-established combat jets like the F/A- Super Hornet, EA-18G Growler and T-7A Red Hawk, in addition to the F-15.
The Boeing Defense, Space & Security segment secured key contract awards worth $8 billion in the third quarter. This resulted in a solid backlog amount of $61.62 billion for this segment as of Sept. 30, 2024.
Opportunities for BA’s Peers
Other aerospace companies that are likely to benefit from the expanding global military aviation market are discussed below:
Northrop Grumman Corporation NOC: Northrop is a provider of manned and unmanned air systems. It builds some of the world’s most advanced aircraft like the E-2C Hawkeye 2000, A-10 Thunderbolt II, F-5 Tiger Fighter Jet and many more.
Northrop has a long-term (three to five years) earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3.4%.
Embraer ERJ: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.
ERJ delivered an average earnings surprise of 127.28% in the last four quarters. The Zacks Consensus Estimate for ERJ’s 2025 sales indicates year-over-year growth of 18.3%.
Lockheed Martin Corporation LMT is the manufacturer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.
Lockheed Martin has a long-term earnings growth rate of 4.5%. The Zacks Consensus Estimate for LMT’s 2025 sales suggests year-over-year growth of 4.1%.
BA Stock Price Movement
BA shares have declined 8.1% in the past six months against the industry’s 0.6% growth.
Image Source: Zacks Investment Research
BA’s Zacks Rank
BA currently carries a Zacks Rank #5 (Strong Sell).
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Today, See These 5 Potential Home Runs >>The Boeing Company (BA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
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