The US Department of Defense issued an urgent invitation to missile makers in America: significantly increasing production to meet the growing global threats. This guidance is a shift in defensive spending that can make huge gains for BING (BA), which carries some of the most important missile contracts in the army.
Modern reports indicate that the Pentagon aims to secure the ability to approximately 2000 PAC-3 missiles from 2024 to 2026 with a new contract worth $ 9.8 billion to Lockheed Martin.
This increase in production comes with high geopolitical tensions and the US military consumes munitions at an unprecedented rate, creating what the defense analysts call the “Golden Age” of missile contractors.
Boeing can become one of the largest beneficiaries.
Boeing holds many high -value contracts that you put ideally to increase production. The joint company program for direct attack (JDAM) received a huge contract worth $ 7.5 billion last year to convert “stupid” bombs into accuracy -guided ammunition.
These groups, produced by Boeing at the St. Louis facility, converts standard bombs into GPS weapons capable of hitting targets with specific accuracy. With the Pentagon pushing to increase the production of JDAM, this contract may witness a great expansion.
The most persuasive is the role of Boeing as a single product of GBU-57 Operator (MP), which is a super giant of 30,000 pounds designed to destroy the buried targets deeply.
After the first combat use of weapons against Iranian nuclear establishments, the Air Force prepares a $ 123 million contract to renew the exhausted shares. Budget documents show that the Pentagon intends at least the power of the MP production at least, with Boeing as a major contractor. The company is also involved in developing the following generation (NGP) with Applied Research Associats.
Boeing’s defense, space and security sector has become quietly profitable. In Q2 2025, BDS recorded 1.7 % running margin. Analysts expect negative margins throughout the year. He received $ 110 million of Q2 operating profit (a loss of $ 913 million in the previous quarter) at 6.6 billion dollars in revenue, with accumulation to $ 74 billion. International requests make up 22 % of this accumulation with the allies rush to renew their ammunition stocks.
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