BAE Systems Wins $112M Contract to Support Naval Communication Systems

BAE Systems BAESY recently secured a contract valued at $111.9 million for providing engineering and technical services to support communication systems aboard Navy surface combatants and associated shore sites. The award has been provided by the Naval Air Warfare Center Aircraft Division, Patuxent River, MD.Details of BAESY’s DealPer the terms of the deal, BAE Systems will offer production, lifetime support engineering and in-service engineering support for radio communication systems. The contract also entails BAESY to provide Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems support. The majority of the work related to this contract will be executed in St. Inigoes, MD, and Norfolk, VA. The project is expected to be completed by April 2030.BAESY’s Growth ProspectsRising military conflicts, terrorism and border disputes have driven nations across the globe to focus more on national security, particularly in strengthening C4ISR capabilities, backed by the growing demand for advanced technologies like network-based battle control, unmanned vehicle and advanced sensor technologies as well as the rising complexity of warfares.This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 3.2% for the global C4ISR market during the 2024-2029 time period.This should benefit BAESY, a prominent innovator in C4ISR technologies that support military operations globally. For decades, the company has provided advanced engineering solutions and comprehensive communication capabilities for the United States and allied military forces across various operational domains.BAESY's proven expertise in C4ISR technologies ranges from innovative command and control technologies and secure, adaptable communications systems to extended-range ISR sensors, high-velocity data analysis systems, cyber resilience solutions and more. This is likely to have enabled the company to secure the latest contract, and considering the growth prospects of the global C4ISR market, should attract more such contracts in the near future.Prospects of BAESY’s PeersOther defense companies that are likely to enjoy the perks of the expanding C4ISR market have been discussed below.Lockheed Martin Corporation LMT: The company provides advanced systems for surveillance, reconnaissance and battle management. One of its key programs includes the Command Control Battle Management Communications, which is the first battle management system capable of integrating across domains. The company’s long-term (three to five years) earnings growth rate is 4.5%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.5%.RTX Corporation RTX: The company focuses on providing integrated defense systems, radar and missile warning systems that improve situational awareness and threat detection. Its Intelligence, Surveillance and Reconnaissance systems and multi-mission sensors are critical to both U.S. and international defense operations.The company’s long-term earnings growth rate is 10.2%. The consensus estimate for RTX’s 2024 sales indicates year-over-year growth of 7.2%.General Dynamics Corporation GD: The company offers advanced communication systems, command and control solutions and ISR platforms that support military forces worldwide. Notably, its subsidiary in Canada offers the Land C4ISR system to the nation’s armed forces to coordinate and conduct modern operations. The company’s long-term earnings growth rate is 11.8%. The Zacks Consensus Estimate for GD’s 2024 sales indicates year-over-year growth of 13.6%.BAESY Stock’s Price MovementShares of BAESY have lost 16.6% in the past six months against the industry’s 15.3% growth.Image Source: Zacks Investment ResearchBAESY’s Zacks RankBAESY 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 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