Boeing Secures a Contract to Support the P-8 Poseidon Aircraft

The Boeing Company BA recently clinched a contract involving its P-8 Poseidon aircraft. The award has been offered by the Defense Logistics Agency Aviation, Philadelphia, PA.Details of BA’s DealValued at $37.1 million, the contract is scheduled to be completed by June 30, 2026. Per the terms of the deal, Boeing will provide various commercial common consumables for the P-8 Poseidon jets.The contract will serve the United States Navy.What’s Favoring Boeing?As nations continue to strengthen their defense structure, defense spending on military weaponry and ordnance boasting technologically advanced features continues to increase manifold. This also includes increased investments in military aircraft that play a critical role in air warfare missions.This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 4.7% for the global military aviation market during the 2025-2030 period.Such strong market prospects offer solid growth opportunities for Boeing, with it being a prominent player in the defense industry and manufacturing an extensive range of combat-proven aircraft programs. These programs enabled the Boeing Defense, Space & Security segment to score a solid backlog amount of $64.02 billion as of Dec. 31, 2024.Moreover, BA excels in providing supporting services like the repair and modification of these jets. Boeing’s renowned military aircraft programs include the F/A-18E/F Super Hornet, KC-46A Tanker, T-7A Red Hawk, in addition to the P-8 Poseidon aircraft. This ushers in solid orders for BA, like the latest contract win, and boosts its future revenue generation prospects.Opportunities for Other Defense StocksOther defense companies that are likely to benefit from the expanding global fighter aircraft 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 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.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 138.39% in the last four quarters. The Zacks Consensus Estimate for ERJ’s 2025 sales indicates year-over-year growth of 15.1%.Lockheed Martin Corporation LMT: It 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 10.6%. The Zacks Consensus Estimate for LMT’s 2025 sales implies year-over-year growth of 4.6%.BA Stock Price MovementBoeing shares have gained 3.8% in the past month compared with the industry’s 2.3% growth.Image Source: Zacks Investment ResearchBA’s Zacks RankBoeing 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 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks