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Boeing Gets $922M Contract to Modify 117 Apache Helicopters

A major player in the aerospace and defense arena, The Boeing Company BA announced that it received a modification contract worth nearly $992.63 million from the Army Contracting Command, Redstone Arsenal, AL.

Per the contract, Boeing will do some modification work on 117 AH-64E remanufactured Apache helicopters. These advanced helicopters also require upgrades to serve the ever changing needs of the Army. The block upgrades of AH-64E helicopters will keep them ready for future missions. AH-64E Apaches are powered by General Electric Company’s GE T700-701D engine, providing an engine power of 1,994 shp (1,487 kW).

These helicopters, an integral part of the U.S. Army, were used extensively during defense missions in the Gulf War, and in operations in Afghanistan and Iraq. These advanced attack helicopters are also used by allied countries.  Boeing has already delivered more than 2,100 Apaches to satisfied customers around the world since the helicopters entered production.

Boeing is conceptualizing a higher version of the Apache helicopters, namely, AH-64F, having greater speed and advanced features than AH-64E.

Boeing has delivered 7 new and 11 remanufactured Apache helicopters to defense customers during the first quarter of 2016. On the fourth quarter 2015 earnings call, Boeing projected 2016 total revenues to be in the range of $93−$95 billion with defense earnings in the $28.5 billion to $29.5 billion range and operating margin of approximately 10%.

Boeing currently has a Zacks Rank #3 (Hold). HEICO Corporation HEI, in the same space, sports a Zacks Rank #1 (Strong Buy), while Huntington Ingalls Industries, Inc. HII carries a Zacks Rank #2 (Buy).

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BOEING CO (BA): Free Stock Analysis Report
 
HEICO CORP (HEI): Free Stock Analysis Report
 
GENL ELECTRIC (GE): Free Stock Analysis Report
 
HUNTINGTON INGL (HII): Free Stock Analysis Report
 
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