Boeing Wins a Contract to Aid C-40A Aircraft for the U.S. Navy & Marine

The Boeing Company BA recently secured a $86.2 million contract to support the C-40A aircraft program for the U.S. Navy and Marine Corps. The contract was awarded by the Naval Air Systems Command, Patuxent River, MD.Details of BA’s DealPer the terms of the deal, Boeing will provide sustainment engineering support for the C-40A aircraft. This includes rapid engineering support, technical services, engineering data, technical publications, technical data, engineering change proposals and material, accident investigations, training and field services.The work related to this deal will be carried out in Tukwila, WA. The contract is expected to be completed by November 2031.What’s Favoring BA?With global defense spending rising amid growing hostilities across the world, investment in advanced defense products, including military transport aircraft, has also been increasing. These aircraft serve a nation in military operations as well as other crucial missions such as troop transportation as well as in humanitarian missions and disaster relief operations.With Boeing being a prominent manufacturer of renowned, combat-proven aircraft across the globe, jets from its product portfolio enjoy solid demand when it comes to the transportation of military troops or other first responders in varied operations. The latest contract win is an example of that.Notably, Boeing's C-40A is a flexible FAA-certified 737-700 convertible aircraft designed for both passenger and cargo transport worldwide. It can be configured to carry passengers, cargo or a mix of both, making it highly adaptable for different missions. It is part of Boeing's C-40 series, which includes the C-40B and C-40C.Growth Opportunities for BAIncreasing warfare situations across the globe have been boosting the usage of military transport aviation for airlifting troops, medical evacuation, firefighting and rescue missions in harsh environments. The use of such aircraft to transport refugees and immigrants as a result of regional military conflicts has also been boosting the need for high-capacity transport jets. This must have prompted IMARC to project that the global military transport aircraft market will witness a CAGR of 2.5% during the 2024-2032 period. Such growth opportunities offered by the military transport aircraft market are likely to benefit America’s largest jet maker. Apart from C-40A, the company’s product portfolio includes the C-17 Globemaster III, which boasts the ability to carry large equipment, supplies and troops directly to small airfields in harsh terrain anywhere in the world. It serves as the primary strategic lift aircraft for the U.S. Air Force for global transport of troops and equipment.BA’s Peer ProspectsOther defense companies that are likely to benefit from the expanding global military transport aircraft market are discussed below.Lockheed Martin Corp. LMT: Its C-5 Galaxy is the U.S. Air Force’s largest and only strategic airlifter. It can carry more cargo to greater distances than any other aircraft. With a payload of six Mine Resistant Ambush Protected vehicles or up to five helicopters, the C-5 can haul twice as much cargo as any other airlifter.The company has a long-term (three to five years) earnings growth rate of 4.5%.  The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.5%.Embraer S.A. ERJ: Its C-390 Millenium is a new-generation military multi-mission transport aircraft with unrivaled mobility and operational flexibility in a single platform. This aircraft provides air forces with optimal fleet performance generated by a cost-effective combination of high availability and productivity.The company boasts a trailing four-quarter average earnings surprise of 127.28%.  The consensus estimate for ERJ’s 2024 sales indicates year-over-year growth of 18.6%.Airbus Group EADSY: Its C295 is a robust, reliable and highly versatile tactical transport aircraft that is tailored for missions that range from carrying troops and cargo, maritime patrol, airborne warning, surveillance and reconnaissance to signals intelligence, armed close air support, medical evacuation, VIP transport and airborne firefighting. Currently, more than 200 C295 jets are in operation globally.The company has a long-term earnings growth rate of 9.2%. The Zacks Consensus Estimate for EADSY’s 2024 sales indicates year-over-year growth of 5.1%.BA Stock’s Price MovementShares of BA have gained 0.5% in the past month against the industry’s 5.7% decline.Image Source: Zacks Investment ResearchBA’s Zacks RankBoeing currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report Airbus Group (EADSY): 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