BAE Systems Secures $656M Deal for M2A4 and M7A4 Combat Vehicles

BAE Systems’ BAESY business unit, Land & Armaments, recently clinched a contract for the production of M2A4 and M7A4 combat vehicles. Valued at $656.2 million, the contract is projected to be completed by Nov. 30, 2027.The deal has been awarded by the Army Contracting Command, Detroit Arsenal, MI.What’s Favoring BAE Systems? Rising global security threats have necessitated bolstering military capabilities. Hence, nations are increasingly spending on defense to upgrade military equipment with advanced technology to maintain a capable and competitive defense force. This has led to significant spending on armored combat vehicles due to their versatility and immense usage in military ground missions.The company’s M2A4 and M7A4 combat vehicles are designed with proven durability and commonality to decrease logistics while increasing battlefield effectiveness across numerous mission circumstances, including close-combat, urban and open-combat conditions. Its A4 pack delivers superior firepower, mobility, survivability and soldier safety in multi-domain operations, ensuring dominance in any environment.BAESY has a diverse portfolio of other combat vehicles, including CV90 Armadillo, ADAPTIV, M109A7, BvS10 and many more. This tends to benefit BAE Systems as its expertise in manufacturing combat vehicles for military missions has been offering it the privilege of winning repeated contracts. The latest contract win is a bright example of that.Growth Prospects for BAESY & Its Peers Per the reports from the Morder Intelligence firm, the global armored fighting vehicle market is likely to register a CAGR of 5% during the 2024-2029 period. Such abounding growth trends indicate ample growth opportunities for BAE Systems as it enjoys a lucrative position in the armored vehicle market.Apart from BAESY, other defense majors that are likely to reap the benefits of the expanding armored fighting vehicle market are Textron Inc. TXT, RTX Corp. RTX and General Dynamics GD.  Textron's COMMANDO armored vehicle series offers the best combination of combat-proven lethality, survivability, mobility and sustainability. This vehicle can also be used as an ambulance, armored personnel carrier or support utility vehicle in a variety of configurations.Textron boasts a long-term (three to five years) earnings growth rate of 10.1%. The Zacks Consensus Estimate for 2024 sales indicates an improvement of 1.1% from the previous year’s figure.RTX’s XM30 Combat Vehicle is a next-generation tracked and armored fighting vehicle designed to meet the crucial problems of the future battlefield. It offers unrivaled troop protection and incorporates technology to keep men and women in armor ahead of the enemy.RTX boasts a long-term earnings growth rate of 10.2%. The Zacks Consensus Estimate for RTX’s 2024 sales implies an improvement of 7.2% from the previous year’s level.General Dynamics’ Land Systems unit is a global leader in designing, engineering, producing, supporting and sustaining tracked and wheeled military equipment. Its product portfolio, which includes the Abrams Main Battle Tank, the Stryker and LAV family of wheeled vehicles, the M10 Booker combat vehicle and the AJAX armored brigade of fighting vehicles, enjoys strong demand in the military landscape.GD’s long-term earnings growth rate is pegged at 11.7%. The Zacks Consensus Estimate for GD’s 2024 sales implies an improvement of 13.2% from the previous year’s level.BAESY Stock Price Movement In the past year, BAE Systems shares have risen 9.9% compared with the industry’s growth of 38.5%.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 Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 General Dynamics Corporation (GD): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks