Zacks Equity Research June 28, 2018
The Boeing Company recently secured a contract for the production and delivery of 22 F/A-18E and six F/A-18F Super Hornets to support the government of Kuwait. Work related to the deal is scheduled to be over by January 2021.
Valued at $1.5 billion, the contract was awarded by the Naval Air Systems Command, Patuxent River, Maryland. Majority of the order will be carried out in El Segundo, CA and Hazelwood, MO.
The company will utilize foreign military sales fund to finance the task.
Growing Demand for F/A-18
Boeing’s F/A-18 Block III Super Hornet is a twin-engine, supersonic, all weather multirole fighter jet. Notably, it comes in two versions — the single-seat E model and the twin-seat F model.
The company is continuously upgrading the Super Hornet program to outpace future threats. Also, Super Hornet’s radar, mission computers and sensors continue to evolve in order to meet extensive mission profiles. Due to the ever-rising worldwide demand of military aircraft, Boeing has developed the Advanced Block III Super Hornet. This fighter jet will complement existing and future air-wing capabilities, which include battle-space situational awareness, counter stealth targeting, increased acceleration and improved survivability.
As a result, Boeing is witnessing strong demand for its fighter aircraft and major aerospace programs, including the F-18 aircraft. This is evident from the contract that it secured from Kuwait in the first quarter for delivering 28 F-18 Super Hornets.