The Boeing Company BA recently clinched a contract involving CH-47F helicopter. The award has been offered by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Valued at $24.4 million, the contract is expected to be completed by Jan 30, 2026. Per the terms of the deal, Boeing will provide selected CH-47F components for the CH-47F Block II configuration. The jet giant will also provide remanufacturing components for CH-47F aircraft for Ordering Periods I and II to satisfy the congressional requirement.
Importance of CH-47 Chinook
Boeing’s CH-47 Chinook Block II helicopter boasts cutting-edge technologies that are most suitable for heavy-lift mission requirements. Additionally, Block II improves readiness for the U.S. Army and Special Operations warfighters, limits future sustainment costs and provides commonality across the fleet to ensure availability of the Chinook fleet for decades to come.
Owing to its unrivaled production, maintenance and sustainment cost efficiencies, the helicopter enjoys a steady demand. Notably, 950 Chinooks are being deployed in 20 countries, which stands a testament to this helicopter’s solid demand. In fact, Boeing may continue to witness a steady flow of contracts involving CH-47 Chinook like the latest contract.
The tiff between Russia and Ukraine has compelled nations across the globe to increase their defense spending for fortifying their defense structure against any sudden assault. In fact, an increased spending has been witnessed for defense arms and ammunitions procurement. In this context, military helicopter that plays an integral part in any defense landscape is likely to witness a surge in demand.
Per the GlobeNewswire report, the global rotorcraft market is likely to witness a CAGR of 4% over the 2022-2027 period. Boeing is poised to enjoy the perks of the expanding market owing to its established position in the military rotorcraft manufacturing marketplace.
Other defense primes that may reap the benefits of the potential increased demand for the rotorcraft are:
Airbus EADSY is one of the world's largest suppliers of advanced military helicopters. Airbus' helicopter division is present in around 150 countries through its 30 customer centers and affiliated sites, 19 training centers, 92 service centers, and four technical support hubs..
Some of EADSY’s military helicopters include H125M, H135, H145M, AS565MBe, H160M, H175M, H215M, H225M, etc.
Lockheed Martin’s LMT Sikorsky business unit provides military and rotary-wing aircraft to all five branches of the U.S. armed forces, along with military services and commercial operators in 40 nations.
Some of LMT’s products include Armed Black Hawk, CH-53K, MH-60R, Defiant X, Raider X, S-97 Raider, FireHawk,etc.
Textron’s TXT whole Bell business supplies advanced military helicopters and provides parts and support services to the U.S. government and military customers outside the United States.
TXT Bell’s primary U.S. government programs are for the production and support of the V-22 tiltrotor aircraft and the H-1 helicopters.
Shares of Boeing have gained 2.2% in the past year against the industry’s decline of 7.7%.
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Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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