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Boeing Gets $127 Million Contract for B-1 Weapon System

Zacks Equity Research
Updated

Aerospace and defense operator The Boeing Co. BA received a contract worth nearly $127.1 million for B-1 integrated battle station for the B-1 weapon system from the U.S. Department of Defense.

Per the contract, Boeing will be in charge of completion of the various kit installations, completion of the system level physical configuration audit, modifications to existing support equipment, and the delivery of technical order changes to support the various aircraft modifications. The work on the contract is expected to be completed by Mar 31, 2017.

The B-1 bomber is one the most trusted fighter jets in any fleet. The capability to fly long distance and carry a heavy payload makes it a perfect choice for all hostile situations. This fighter jet has been adapting to global security challenges for the last three decades and requires to be regularly upgraded with changing threat perceptions.

The integrated battle station will help in lowering the downtime of the bombers and also assist in new pilot training. This bomber has successfully completed missions in Syria, Libya, Iraq and Afghanistan among other places of conflict.

Boeing’s Defense, Space & Security segment contributes in excess of 30% of total revenues. For 2015, the company expects defense contracts to contribute nearly 31% of total revenues. Boeing expects its defense business to generate revenues in the range of $29.5 billion to $30.5 billion in 2015. The division exited the second quarter of 2015 with a backlog of $58 billion.

Boeing’s diverse product offering helps it to receive consistent orders from both domestic as well international clients. Recently, the company’s joint venture with Lockheed Martin Corporation LMT – United Launch Alliance – received a contract worth $$882.1 million from the U.S. Air Force for Evolved Expendable Launch Vehicle (EELV) capability for the Delta IV and Atlas V family of launch vehicles (read: Boeing-Lockheed JV Wins $882M U.S. Modification Contract).

Boeing currently has a Zacks Rank #2 (Buy). Investors interested in the aerospace and defense sector may also consider Leidos Holdings, Inc.  LDOS and Northrop Grumman Corporation NOC. While Leidos sports a Zacks Rank #1 (Strong Buy), Northrop carries a Zacks Rank #2.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
 
BOEING CO (BA): Free Stock Analysis Report
 
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
 
LEIDOS HOLDINGS (LDOS): Free Stock Analysis Report
 
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