Boeing Supplied Four Grey Wolf Helicopters to the US Air Force

Grey Wolf Helicopters

Boeing Company (NYSE: BA)

The US Air Force requires new helicopters to replace its aging fleet of UH-1Ns, and the Boeing Company (NYSE:BA) recently revealed that it had delivered four MH-139A Grey Wolf test helicopters to the Air Force.

The Grey Wolf shipment is Boeing Company’s (NYSE:BA) follow-up to a $2.4 billion deal won in September 2018 that called for the delivery of 80 helicopters and training systems and related support equipment. On the way to Milestone C, the rotorcraft will be put through Military Utility Testing by the United States Air Force.

Grey Wolf’s Importance

Grey Wolf is a multi-role aircraft designed to match the performance of the reliable commercial AW139 helicopter. In addition, Grey Wolf has the capabilities of a modern, flexible aircraft, surpassing the UH-1N Huey in range, speed, and endurance.

Grey Wolf helicopter was also developed to transport high-ranking US government officials and security troops and to guard intercontinental ballistic missiles.

The Reason Boeing is Doing So Well.

Boeing Company (NYSE:BA) has been receiving continuous orders because of the company’s cutting-edge products and extensive experience building military helicopters. The company has an extensive lineup of helicopters in high demand across the military sector.

Its helicopter lineup includes the AH-6 Little Bird, AH-64 Apache, V-22 Osprey, and H-47 Chinook, with the MH-139A Grey Wolf and the DEFIANT X in development. Boeing’s capacity to sustainably expand in the military sector is reflected in the breadth and depth of its product catalog.

Given this context, it’s reasonable to assume that Boeing Company (NYSE:BA) will continue to receive helicopter orders from the United States Air Force thanks to the quality of the services and products it provides to the armed forces. As a result, this bodes well for the company’s ability to generate income from the rotorcraft market.

Prospects for Expansion

Due to the increased defense spending of several countries in response to the conflict between Russia and Ukraine, the demand for military hardware has recently skyrocketed. It’s possible that this factored into a rise in defense spending for rotorcraft.

Mordor Intelligence predicts that the market for military rotorcraft will grow at a CAGR of over 4% between 2022 and 2027. Boeing and other defense primes like Lockheed Martin (LMT), Textron (TXT), and Northrop Grumman (NOC) will undoubtedly benefit from this, as they are already well-established in the market for military helicopters.

The Sikorsky division of Lockheed Martin supplies rotary-wing aircraft to the United States military and armed forces of 40 other countries and to military services and commercial operators in those countries. The CH-53K, S-92, UH-60 Black Hawk, etc., are just a few of its product lines. The projected long-term increase in Lockheed Martin’s bottom line is 5.5%. In the past year, LMT stock has increased by 19.9 percent.

Lockheed’s long-term earnings growth rate is predicted to be 5.5%. LMT stock has gained 21.2% in the previous 12 months.

Bell, a division of Textron, is a global leader in designing, manufacturing, and selling helicopters, tiltrotor aircraft, and associated spare parts and services for the military and commercial aviation industries. Bell 360, Bell V-280, Bell AH-1Z, Bell UH-1Y, Bell Huey II, and Bell V-22 are some of the military helicopters it offers.

Long-term profits growth for TXT stock is expected to be 12.5%. In the last quarter, Textron’s stock has risen 1.4%.

Without the need for piloted aircraft or satellite support, Northrop Grumman’s Fire Scout can provide tactical users with real-time ISR, target acquisition, laser designator, and battle management. You can choose between the MQ-8B Fire Scout and the MQ-8C Fire Scout.

Long-term profit growth at Northrop Grumman is 2.2%. In the past year, NOC shareholders have gained 25.6%.

Stock Price

Boeing Company’s (NYSE:BA) stock price has increased by 32.4% over the past three months, far above the industry’s 5.3% gain.

Featured Image:  Megapixl @Alexeynovikov

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.