The Boeing Company BA recently secured a modification contract to support the sustainment of C-17 Globemaster III jets. The award has been provided by the Air Force Lifecycle Management Center, Robins AFB, GA.

Details of BA’s Deal

Valued at $2.46 billion, the contract is expected to be completed by Oct. 31, 2027. The work related to this deal will be executed in multiple locations, including Long Beach, CA; San Antonio, TX; Robins Air Force Base, GA; Charleston, SC; McCord AFB, WA; and various locations around the globe.

This contract includes foreign military sales to Australia, Canada, India, Kuwait, NATO Airlift Management Program, Qatar, United Arab Emirates and the United Kingdom.

Significance of BA’s C-17 Globemaster III Jet

Boeing’s C-17 Globemaster III boasts the ability to carry large equipment, supplies and troops directly to small airfields in harsh terrain anywhere in the world. It serves as the primary strategic lift aircraft for the U.S. Air Force for global transport of troops and equipment.

There are 275 C-17 aircraft currently being operated worldwide, which is significant proof of its solid demand. The latest contract win is yet another example of it.

Growth Opportunities for BA Stock

Increasing warfare situations across the globe, resulting in growing troop deployment, have been boosting the usage of military transport aviation for airlifting troops, medical evacuation, firefighting and rescue missions in harsh environments. The use of such aircraft to transport refugees and immigrants as a result of regional military conflicts has also been boosting the need for high-capacity transport jets.

This must have prompted the IMARC group to project that the global military transport aircraft market will witness a CAGR of 2.4% during the 2025-2033 period.

Such growth opportunities offered by the military transport aircraft market are likely to benefit prominent jet manufacturers like Boeing. With the company being a prominent manufacturer of renowned, combat-proven aircraft across the globe, jets from its product portfolio enjoy solid demand when it comes to the transportation of military troops or other first responders in varied operations.

Apart from C-17, the company’s product portfolio includes the CH-47 Chinook helicopter, which is an advanced, multi-mission, tandem-rotor helicopter. The helicopter is mainly used for cargo and troop transport, search and rescue, casualty evacuation, special operations, and humanitarian and disaster relief.

Opportunities for Other Defense Stocks

Other defense companies that are likely to benefit from the expanding global military transport aircraft market are discussed below.

Lockheed Martin Corp. LMT: Its C-5 Galaxy is the U.S. Air Force’s largest and only strategic airlifter. It can carry more cargo to greater distances than any other aircraft. With a payload of six Mine Resistant Ambush Protected vehicles or up to five helicopters, the C-5 can haul twice as much cargo as any other airlifter.

The company has a long-term earnings growth rate of 10.6%.  The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.6%.

Embraer S.A. ERJ: Its C-390 Millennium is a new-generation military multi-mission transport aircraft with unrivaled mobility and operational flexibility in a single platform. This aircraft provides air forces with optimal fleet performance generated by a cost-effective combination of high availability and productivity.

The company boasts a trailing four-quarter average earnings surprise of 138.39%.  The Zacks Consensus Estimate for ERJ’s 2025 sales indicates year-over-year growth of 15.1%.

Airbus Group EADSY: Its C295 is a robust, reliable and highly versatile tactical transport aircraft that is tailored for missions that range from carrying troops and cargo, maritime patrol, airborne warning, surveillance and reconnaissance to signals intelligence, armed close air support, medical evacuation, VIP transport and airborne firefighting. Currently, more than 200 C295 jets are in operation globally.

The company has a long-term earnings growth rate of 7.5%.  The Zacks Consensus Estimate for EADSY’s 2025 sales indicates year-over-year growth of 9.1%.

BA Stock’s Price Movement

In the past six months, shares of Boeing have lost 3.2% against the industry’s 6.6% growth.

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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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This article originally published on Zacks Investment Research (zacks.com).

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