Airbus SE EADSY secured a contract to provide logistics support and engineering services for the UH-72 Lakota helicopter. The award has been offered by the Army Contracting Command, Redstone Arsenal, AL.

Valued at $315 million, the contract is expected to be completed by Dec. 31, 2025. The majority of the work related to this deal will be carried out in Grand Prairie, TX.

EADSY’s Expertise in Military Helicopters
 

As nations are upgrading their defense capabilities, expenditures on cutting-edge defense equipment and ammunition have been rising quickly. Increasing expenditures on military helicopters, which are essential for air combat operations, contribute to the rising defense expenditures. As a leading manufacturer of combat helicopters, Airbus has received a steady stream of orders from all over the world.

More than 140 armed forces worldwide rely on Airbus for its expertise to produce high-quality multi-role helicopters. These copters are able to fulfill a wide range of operational military roles, such as armed reconnaissance, utility, attack, naval, maritime and special operations.

In particular, EADSY’s UH-72 Lakota is a highly adaptable and reconfigurable helicopter capable of carrying out a wide range of tasks under a variety of climates and environments. Its missions are as diverse as its operational locations, encompassing training, general utility, search and rescue, reconnaissance, medical evacuation, disaster response, homeland security, counterdrug, command and control, and VIP transportation.

Growth Prospects for Airbus
 

Amid rising military conflicts, terrorism and border disputes, these combat-proven helicopters play a critical role in a country's security system. This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 2.9% for the military helicopter market during the 2024-2030 period. Such growth opportunities offered by the aforementioned market should bode well for Airbus.

EADSY’s product portfolio consists of varied combat helicopters, such as the H125M, H160M, H175M, H215M, H225M, Tiger, NH90 and a few more. These enjoy solid demand in the global military helicopter market, with some 19,000 helicopters delivered across 150 nations.

Opportunities for Other Defense Companies
 

Other defense companies that are expected to enjoy the perks of the expanding military helicopter market have been discussed below:

Boeing BA: The company’s helicopters are renowned for their leading-edge, relevant solutions that provide capacity. Boeing’s product portfolio includes combat helicopters and rotorcraft like the H-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.

Boeing has a long-term (three to five years) earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates an improvement of 21.9% from the 2024 estimated figure.

Textron TXT: Its Bell business segment supplies advanced military helicopters and provides parts and support services to the U.S. Government and military customers outside the United States. Its portfolio of combat helicopters includes Bell 412M, Bell 429M, Bell 407M and Bell 505M.
 
TXT boasts a long-term earnings growth rate of 10.1%. The Zacks Consensus Estimate for TXT’s 2025 sales indicates year-over-year growth of 7.4% from the 2024 estimated figure.

Lockheed Martin LMT: Its Sikorsky business unit provides military and rotary-wing aircraft to all five branches of the U.S. armed forces, along with military services and commercial operators in 40 nations. Some of LMT’s renowned products are Armed Black Hawk, CH-53K, MH-60R SEAHAWK, Raider X, S-97 Raider, S-70 BLACK Hawk, etc.

Lockheed boasts a long-term earnings growth rate of 4.4%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates an improvement of 3.9% from the 2024 estimated figure.

EADSY Stock Price Movement
 

In the past six months, Airbus shares have risen 13.1% compared to the industry’s fall of 1.7%.

Image Source: Zacks Investment Research

EADSY’s Zacks Rank
 

Airbus currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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