Yahoo Finance Northrop (NOC) Wins Deal to Support Hawkeye Jet Production
Northrop Grumman Corporation’s NOC business unit, Aeronautics Systems, recently clinched a modification contract to support E-2D Advanced Hawkeye aircraft production. Valued at $29.1 million, the contract is projected to be complete by November 2027.
Details of the Deal
The modification contract was awarded by the Naval Air Systems Command, Patuxent River, MD. The deal involves providing unique components and engineering support for three E-2D Advanced Hawkeye aircraft as part of Foreign Military Sales.
The contract will serve the government of France. The work related to the deal will be carried out at multiple locations across the United States.
What’s Favoring Northrop Grumman?
Northrop Advanced Hawkeye is the cornerstone of the U.S. Navy’s air and missile defense architecture in littoral, overland and open sea. It offers capabilities that assist the Navy and joint force in outpacing evolving threats. Such features make it attractive for the military, resulting in NOC winning multiple orders for the same, like the latest one.
Northrop Grumman offers a wide range of impressive manned and unmanned aircraft in the military aviation system that boasts strong demand in the market. Going forward, per the reports from Expert Market Research, the global military aircraft market is expected to witness a CAGR of 5.1% from 2023 to 2028.
Considering the wider growth prospects and Northrop’s expertise in military aviation, the company may witness significant demand for its aircraft, which will continue to boost its Aeronautics Systems revenue generation prospects. In the last reported quarter, the segment’s revenues increased 2.5% year over year.
Peer Prospects
As nations continue to strengthen their defense capabilities, the demand for advanced fighter jets may increase manifold, thus contributing to the following companies’ growth prospects.
Boeing BA: The company is a prominent jet maker and enjoys a dominant position in the combat aircraft market. Its expertise lies in a wide variety of defense aircraft and jet components, repair and modification-related programs. Its military aircraft include the C-17 Globemaster III, P-8A Poseidon, V-22 Osprey, etc.
Boeing has a long-term (three to five) earnings growth rate of 4%. Its investors have gained 35.1% in the past year.
Airbus Group EADSY: Its military aircraft consist of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
Airbus’ long-term earnings growth rate is pegged at 12.4%. Shares of EADSY have returned 40% value to its investors in the past year.
Lockheed Martin LMT: It designs and integrates systems and manufactures the most agile and effective aircraft. Its product portfolio includes the Black Hawk, C-130J Super Hercules, F-16 Fighting Falcon, F-35 Lightning II fighter aircraft, etc.
Lockheed boasts a long-term earnings growth rate of 6.5%. Its shares have returned 5% to its investors in the past year.
Price Movement
In the past three months, shares of Northrop Grumman have decreased 2% compared with the industry’s decline of 0.5%.
Image Source: Zacks Investment Research
Zacks Rank
Northrop Grumman 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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The Boeing Company (BA) : Free Stock Analysis Report
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