Air Industries Group’s AIRI business unit, Sterling Engineering Corporation, has sealed two contracts worth $3.2 million. The contracts entail supplying engine components for the F-135 jet engine powering the Lockheed Martin F-35 Lightning II. Deliveries are set to commence in early 2024.
Unveiling the Wings of Triumph
Lockheed Martin’s F-35 fleet flaunts cutting-edge features that make it an enticing choice for an array of nations. The company’s relentless pursuit of modernization to enhance the fighter jet with advanced technologies, keeping pace with contemporary warfare requisites, is propelling its demand.
The U.S. government has set its sight on owning 2,456 F-35 jets for the Air Force, Marine Corps, and Navy. The U.S. Department of Defense’s fiscal 2024 budget earmarks $842 billion for expenditure, with $61.1 billion slated for fighter jets, including the F-35.
With these factors at play, Air Industries is poised to witness a surge in orders for F-35 engine components, set to significantly bolster its top line.
Looking at the Defense Landscape
The escalating U.S. defense budget is anticipated to benefit other defense majors like BAE Systems BAESY, Northrop Grumman NOC, and Lockheed Martin LMT.
BAE Systems stands in alignment with U.S. National Defense Strategy priorities. In December 2023, the company secured a $211 million firm-fixed-price modification agreement from the U.S. Marine Corps for additional Amphibious Combat Vehicles.
Northrop Grumman’s funding for its franchise programs, GBSD and B-21, has been augmented by the U.S. Department of Defense. The company also earned a contract from the U.S. Navy to design 57mm guided high explosive ammunition.
Lockheed Martin, being a prime defense products supplier, clinched a contract from the U.S. Navy to manufacture eight Sikorsky MH-60R Seahawk helicopters for the Spanish Navy and bagged a contract to develop and deliver up to four 300 kW-class laser weapon systems to the U.S. Army’s Indirect Fire Protection Capability-High Energy Laser prototype program.
Performance Indicators
In the last month, AIRI shares have surged by 9.2%, outperforming the industry’s 5.3% rally.
Image Source: Zacks Investment Research
Tracking the Zacks Rank
Air Industries Group currently holds a Zacks Rank #3 (Hold). For a list of today’s Zacks #1 Rank (Strong Buy) stocks, check here.
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