BAE Systems Inc. (BAESY) has secured a $204.2 million contract to maintain, modernize, and repair the USS Iwo Jima (LHD 7), with the majority of the work taking place in Norfolk, VA. The contract is expected to be completed by February 2028 and was awarded by the Naval Sea Systems Command in Washington, D.C.
This contract enhances BAE Systems’ role as a vital support provider for the U.S. Navy, providing consistent revenue and stable cash flows through service-related activities. It is part of a broader trend, as the global naval vessels market is projected to experience a compound annual growth rate (CAGR) of 6.46% between 2025 and 2030, reflecting rising defense spending from various nations.
In the past year, shares of BAE Systems have seen an impressive growth of 89.7%, outpacing the industry average of 51.3%.
