BAE Systems Secures $188M Deal for Amphibious Combat Vehicles

BAE Systems plc’s BAESY business unit, Land & Armaments, recently clinched a contract for Amphibious Combat Vehicles (ACVs). The deal has been awarded by the Marine Corps Systems Command, Quantico, VA. Valued at nearly $188.5 million, the contract is projected to be completed by August 2028.Per the terms of the deal, BAE Systems will provide 30 full-rate production ACV medium caliber cannon mission role variations and the associated production, fielding and support costs. The majority of the work related to the deal will be carried out in York, PA.An Insight on BAE Systems’ ACV BAE Systems' ACV has been developed to achieve the challenging mission objective of deploying Marines from ship to shore. It offers a distinct combination of actual open-ocean amphibious capability, land mobility, survivability and payload. It has considerable growth potential to meet the increasing operational needs of the U.S. Marine Corps.BAE Systems has been a valued supplier to the Marine Corps in a variety of fields for more than 75 years, including developing and producing amphibious vehicles. The company’s ACV family includes the ACV-P, ACV-C, ACV-30 and ACV-R.Growth Potential for BAESY & Other Defense Stocks As the demand for an efficient security system that can strengthen naval sea warfare capabilities rises, so do the prospects of the naval vessels market. Per a report from the Mordor Intelligence firm, the naval vessels market is projected to witness a CAGR of 6.5% during the 2025-2030 period. This market growth opportunity should boost BAE Systems’ operating results.Other defense majors poised to benefit from the expanding naval vessels market are Lockheed Martin Corp. LMT, Huntington Ingalls Industries HII and General Dynamics Corp. GD.Lockheed manufactures Littoral Combat Ships. Its freedom-variant, LCS USS Nantucket (LCS 27), is a resilient, flexible warship designed to encounter the evolving missions of the U.S. Navy. LCS 27 is particularly designed to conduct close-to-shore missions.Lockheed boasts a long-term (three to five years) earnings growth rate of 7.8%. The Zacks Consensus Estimate for 2025 sales indicates an improvement of 4.6% from the previous year’s figure.Huntington Ingalls’ business segment designs and constructs non-nuclear ships for the U.S. Navy and the U.S. Coast Guard, including amphibious assault ships, guided missile destroyers, surface combatants and national security cutters.HII boasts a long-term earnings growth rate of 11.1%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 3.7% from the previous year’s level.General Dynamics' Marine Systems segment is the world's premier designer and manufacturer of nuclear-powered submarines, as well as a leader in surface combatant and auxiliary ship design and building for the U.S. Navy.GD’s long-term earnings growth rate is pegged at 9.8%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 5.5% from the previous year’s level.BAESY Stock Price Movement In the past six months, BAE Systems shares have risen 30.5% compared with the industry’s growth of 8.1%.Image Source: Zacks Investment ResearchBAESY’s Zacks Rank BAE Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks