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Boeing Scores $8.6B Military Deal: What This Means for the Stock

Boeing just bagged an $8.6B military contract amidst industry headwinds. Here’s the breakdown and why it matters for their future cash flow.

Rendy Andriyanto

Rendy Andriyanto

— 1 min read
Boeing Scores $8.6B Military Deal: What This Means for the Stock

Jakarta, Gotrade News - The Boeing Company just secured a jumbo military deal that bolsters its long-term cash flow. This contract serves as a positive catalyst as the aerospace giant navigates its recovery efforts.

Key Takeaways

  • Boeing lands a contract worth up to $8.6 billion to produce F-15IA fighter jets.
  • This project secures production activity at the St. Louis facility through the end of 2035.
  • A separate maintenance service contract also saw its value bump up to $4.2 billion.

The Pentagon announced the awarding of a contract worth up to $8.6 billion to Boeing on Monday. The deal covers the design and production of 25 new F-15IA fighter jets specifically for the Israeli Air Force.

Market Watch noted that the contract includes an option for an additional 25 aircraft down the line. Work will be carried out at the St. Louis, Missouri facility, with a completion target set for late 2035.

Foreign military sales funds for Israel totaling $840 million will be obligated immediately at the time of the award. Separately, Boeing also received a modification to a maintenance service contract in Oklahoma City.

A Seeking Alpha report highlighted that the award value jumped significantly from $1.5 billion to $4.2 billion. This string of deals provides solid revenue certainty for Boeing's defense segment for the next decade.

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