The Boeing Company BA recently secured a contract involving its F/A-18 jets. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.

Details of BA’s Deal

Valued at $33.2 million, the contract is projected to be completed by April 2026. Per the deal, Boeing will produce and deliver 41 Distributed Targeting Processor-Networked (DTP-N) B Kits, five DTP-N B Kit Lab Assets and nine Processor eXpress Mezzanine Cards. It will also provide associated cybersecurity, travel and obsolescence for the DTP-N program in support of F/A-18 service life modifications for the Navy.

The work related to this deal will be carried out in Melbourne, FL and St. Louis, MO.

Significance of BA’s F/A-18 Jets

Boeing engages in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility, including fighter and trainer aircraft, rotorcraft and tilt-rotor aircraft, and commercial derivative aircraft, including anti-submarine and tanker aircraft.

Boeing's F/A-18 Super Hornet is particularly noteworthy as it can perform nearly every mission within the tactical spectrum. These missions include air superiority, day/night precision strikes, fighter escorts, close air support, suppression of enemy air defenses, maritime strikes, reconnaissance, forward air control and tanker missions.

The latest model of this jet, Block III, currently being used by the U.S. military, is the most networked and survivable F/A-18 built.

BA’s Growth Prospects

Amid the volatile global landscape, the demand for military aircraft has been surging significantly. With more nations focusing on increasing their aerial supremacy, coupled with the emergence of modern-day jets that come with more sophisticated technologies like enhanced stealth, precision targeting and electronic warfare capabilities, the global fighter aircraft market’s growth opportunities remain immense.

This must have led the Mordor Intelligence firm to predict that the global fighter aircraft market will witness a CAGR of 3.7% during the 2025-2030 period.

These projections indicate significant growth opportunities for leading combat jet manufacturers like Boeing. The company’s military jet portfolio includes combat-proven aircraft, such as the F-15, P-8, T-7A Red Hawk, E/A-18G and C-17 Globemaster III, in addition to the F/A-18 jets.

Opportunities for Other Defense Stocks

Lockheed Martin Corporation LMT: It is the producer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.

Lockheed has a long-term (three to five years) earnings growth rate of 7.8%. The Zacks Consensus Estimate for 2025 sales indicates year-over-year growth of 4.6%.

Northrop Grumman Corporation NOC: It is a leading provider of proven manned and unmanned air systems. It builds some of the world’s most advanced aircraft like the B-2 Spirit Stealth Bomber, A-10 Thunderbolt II and B-21 Raider.

Northrop Grumman has a long-term earnings growth rate of 4.2%. The consensus estimate for 2025 sales indicates year-over-year growth of 3%.

Embraer ERJ: It is a prominent combat aircraft manufacturer. The company’s product portfolio includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.

ERJ delivered an average earnings surprise of 138.39% in the last four quarters. The Zacks Consensus Estimate for ERJ’s 2025 sales indicates year-over-year growth of 13.9%.

BA Stock’s Price Performance

In the past three months, shares of Boeing have gained 0.9% against the industry’s 0.5% decline.

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BA’s Zacks Rank

Boeing 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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The Boeing Company (BA) : Free Stock Analysis Report

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