PHILADELPHIA - The U.S. Air Force has expanded its fleet of helicopters with a new $178 million contract awarded to Boeing (NYSE:BA) for the production of seven additional MH-139A aircraft, alongside sustainment and training support. This latest agreement increases the total number of MH-139A helicopters ordered to 26, signaling progress toward full-rate production.
Azeem Khan, MH-139 program director at Boeing, emphasized the significance of the contract, stating that building the Grey Wolf fleet is a crucial step in supporting the Air Force's modernization efforts. He also highlighted the importance of delivering enhanced capabilities to the Air Force to protect national assets.
The MH-139A, also known as the Grey Wolf, is a multi-mission helicopter utilized for a variety of tasks including patrol, search and rescue, and transportation of troops and cargo. It is based on the Leonardo Helicopter AW139 and has been customized with military equipment by Boeing to meet specific defense requirements. The aircraft boasts advanced technology designed for efficient, quiet, and safe mission execution.
The first production MH-139A helicopter completed its initial flight in December 2023 and is currently undergoing further testing. Boeing is on schedule to deliver the first Low Rate Initial Production (LRIP) aircraft to the Air Force in the upcoming summer.
Boeing is recognized as a leading aerospace company globally, engaging in the development, manufacturing, and servicing of commercial airplanes, defense products, and space systems.
This news is based on a press release statement issued by Boeing.
InvestingPro Insights
Amid the announcement of Boeing's new contract with the U.S. Air Force, the aerospace giant's financial metrics and market sentiment provide a mixed picture. According to InvestingPro data, Boeing has a substantial market capitalization of $104.02 billion, underscoring its prominence in the Aerospace & Defense industry. However, the company's financial performance has faced challenges, as reflected in its negative P/E ratio of -47.28, which further deteriorated in the last twelve months as of Q1 2024 to -82.77. This suggests that investors are cautious about Boeing's earnings potential in the near term.
Despite securing military contracts, Boeing's stock has been under pressure, trading near its 52-week low and experiencing a significant price drop of over 18% in the last three months. These movements hint at the stock's volatility, an InvestingPro Tip that potential investors should consider. Moreover, the company's gross profit margin stands at 11.48%, which is relatively weak and could be a cause for concern for stakeholders looking at the company's profitability.
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