Textron Inc.’s TXT business segment, Bell, recently secured a $37.7 million contract to supply Bell 412 EPX helicopter. The work related to this contract will be carried out in Fort Worth, TX.

The deal is projected to be completed by Dec. 31, 2025. The contract has been offered by the Army Contracting Command, Redstone Arsenal, AL.

What’s Favoring TXT?

With global defense spending rising amid growing hostilities across the world, the investment in advanced defense products, including multi-mission helicopters, has also been increasing. These aircraft serve a nation in military operations, as well as other crucial missions such as troop transportation and search and rescue, which are conducted by different law enforcement agencies, apart from the army. With Bell being a renowned manufacturer of such multi-role helicopters, the company thus enjoys a solid inflow of contracts from the Pentagon and other U.S. allies frequently, like the latest one.

Notably, Bell Textron’s Bell 412 EPX offers seating for up to 14 passengers and has the widest cabin opening in its class. This ensures ample space for both personnel and cargo, making it highly versatile for various missions such as emergency services, transport or utility roles. It is also equipped with a modern flight deck that enhances pilot awareness and safety.
 
Its four high-resolution displays provide access to critical information, including maps, terrain data and touch controls for easy navigation and smooth operation. The aircraft’s standard BLR Strake and Fast Fin system optimize airflow around the tail boom, improving handling and stability even in challenging conditions like high-speed crosswinds or high-altitude environments.

Such notable features of the aforementioned helicopter of TXT are likely to have been boosting their demand, which is further evident from the latest contract win.

TXT Stock’s Growth Prospects

With rising geopolitical tensions and evolving security concerns, nations are increasingly focusing on strengthening their helicopter fleet to support both civilian and defense-related operations. The demand for multi-role helicopters is surging, driven by their adaptability across sectors such as law enforcement, medical emergencies, firefighting and offshore transport. Additionally, these rotorcraft are playing an expanding role in disaster relief, humanitarian missions and infrastructure maintenance, providing rapid response capabilities in difficult-to-access areas.

This is likely to have prompted Market Research Future to forecast a compound annual growth rate of 3.5% for the global military multirole helicopter market during the 2024-2032 time period.

This is likely to benefit TXT, a prominent manufacturer of military and multi-role helicopters that are used in public safety missions. TXT’s helicopters used in safety missions include the Bell 429, Bell 505, Bell 407 and Bell 525, in addition to the Bell 412 EPX. These aircraft are widely used across sectors like law enforcement, medical evacuation and search-and-rescue missions.

Prospects of TXT’s Peers

Other defense companies that are likely to enjoy the perks of the expanding global commercial helicopter market have been discussed below.

Lockheed Martin Corporation LMT: Through its subsidiary, Sikorsky, LMT produces a range of helicopters for both military and civilian use. The Sikorsky S-76 and S-92 are well-known models used in operations such as offshore transport and search and rescue.

The company’s long-term (three to five years) earnings growth rate is 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales indicates year-over-year growth of 5.2%.

The Boeing Company BA: While Boeing is primarily recognized for its defense and commercial aircraft, it also produces helicopters through its defense division. Its CH-47 Chinook is a heavy-lift helicopter that has been used in multiple missions like cargo and troop transport, search and rescue, casualty evacuation, special operations and humanitarian and disaster relief.
 
The company’s long-term earnings growth rate is 21.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 22.2%.

Airbus Group EADSY: Airbus Helicopters, a division of Airbus, produces several multi-role helicopters, including the H145M and H225M, which are used for a variety of military and civilian purposes. These helicopters are widely utilized for search and rescue, emergency medical services, offshore transport and defense operations.

The company’s long-term earnings growth rate is 12%. The Zacks Consensus Estimate for EADSY’s 2024 sales indicates year-over-year growth of 5.4%.

TXT Stock’s Price Movement

Shares of TXT have gained 9.4% in the year-to-date period against the industry’s 6.7% decline.

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TXT’s Zacks Rank

TXT 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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