Boeing Company (BA) shares pushed higher Wednesday after the aerospace giant landed a hefty pair of contracts from the U.S. Department of Defense totaling nearly $7 billion.
Boeing Secures Nearly $7 Billion in Military Contracts as Shares Climb
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Breaking Down the Deals
The meatier of the two contracts is a firm-fixed-price agreement valued at $4.685 billion. Under this deal, Boeing will deliver new-build Apache AH-64E attack helicopters along with Longbow crew trainers and an assortment of related components, spare parts, and accessories. The contract runs through May 30, 2032, giving Boeing a solid production runway for the next seven years.
The second contract is a $2.47 billion modification to an existing agreement (FA8625-11-C-6600, for those keeping track). This modification covers Lot 12 production aircraft plus G081 subscriptions and licenses, with work scheduled for completion by June 30, 2029.
Commercial Wins Pile Up Too
These military contracts cap off a strong month for Boeing on the order front. The company has been racking up significant deals with Gulf region carriers, which have been particularly bullish on Boeing's lineup lately.
Emirates placed its third order for the 777X aircraft family, committing to 65 of the 777-9 passenger jets. Meanwhile, Gulf Air finalized a deal for 15 Boeing 787 Dreamliners with options for three additional aircraft. Boeing also signed a Memorandum of Understanding with flydubai, the UAE-based low-cost carrier, for its fourth 737 MAX fleet.
The combination of military and commercial momentum provided a lift to Boeing shares, which were trading 1.59% higher at $185.34 on Wednesday.
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