Northrop Grumman Corporation, through its Aeronautics Systems business unit, has been awarded a modification contract to provide support for the production of E-2D Advanced Hawkeye aircraft. The contract, valued at $29.1 million, is expected to be completed by November 2027.
The Naval Air Systems Command in Patuxent River, MD, granted the modification contract. Under this deal, Northrop Grumman will supply unique components and engineering support for three E-2D Advanced Hawkeye aircraft, as part of a Foreign Military Sales agreement with the government of France. The work will be conducted at various locations throughout the United States.
Why Northrop Grumman Stands Out
The Northrop Grumman E-2D Advanced Hawkeye plays a critical role in the U.S. Navy’s air and missile defense strategy. It provides advanced capabilities that enable the Navy and joint forces to stay ahead of evolving threats. These features make it highly sought after by the military, resulting in multiple orders for Northrop Grumman. The company’s Aeronautics Systems division has seen a 2.5% year-over-year increase in revenue. Moreover, as per Expert Market Research, the global military aircraft market is projected to have a compound annual growth rate (CAGR) of 5.1% from 2023 to 2028, indicating significant growth potential for Northrop Grumman’s aviation expertise.
Other companies are also expected to benefit from the increasing demand for advanced fighter jets driven by nations enhancing their defense capabilities:
Boeing (BA): Known for its expertise in combat aircraft, Boeing offers a wide range of defense aircraft and jet components with programs related to repair and modification. Its military aircraft portfolio includes the C-17 Globemaster III, P-8A Poseidon, and V-22 Osprey. Boeing has a long-term earnings growth rate of 4% and has provided investors with a 35.1% return over the past year.
Airbus Group (EADSY): Airbus’ military aircraft lineup consists of the A400M, C295 tactical transporter, A330 Multi Role Tanker Transport, and Eurofighter. The company has a long-term earnings growth rate of 12.4% and has delivered a 40% return to its investors in the past year.
Lockheed Martin (LMT): Known for designing and integrating systems and manufacturing agile and effective aircraft, Lockheed Martin’s product portfolio includes the Black Hawk, C-130J Super Hercules, F-16 Fighting Falcon, and F-35 Lightning II fighter aircraft. Lockheed Martin has a long-term earnings growth rate of 6.5% and has provided a 5% return to its investors in the past year.
Price Movement and Zacks Rank
Over the past three months, Northrop Grumman’s stock has declined by 2%, slightly underperforming the aerospace and defense industry’s 0.5% decline. Furthermore, Northrop Grumman currently holds a Zacks Rank #3 (Hold).
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Source : Nasdaq.com