US okays $5.75 billion munitions, engines sale to Saudi Arabia

The U.S. State Department approved potential weapons sales to Saudi Arabia, including Joint Direct Attack Munitions for $5B and AGT-1500 engines for $750M. Boeing (BA) is involved in the deal.

The U.S. State Department approved a potential $5B sale of Joint Direct Attack Munitions to Saudi Arabia, with Boeing as the principal contractor. Additionally, a $750M sale of AGT-1500 engines was approved, with Honeywell as the contractor.

Boeing won a $241.3M contract from the U.S. Navy for repairing flight control surfaces on F/A-18 E/F and EA-18G aircraft. Work will be done in Florida and Missouri, with completion expected by September 2032. The Navy will initially obligate $60.3M in fiscal 2026 funds.

Defense Secretary Jim Mattis increased munitions procurement in the Pentagon's FY18 budget request to maximum production rates. The $3.5B allocation includes Hellfire missiles, JDAMs, GMLRS, SDBs, Tomahawks, and APKWS, benefiting Lockheed Martin, Boeing, and Raytheon. The Pentagon aims to replenish stocks used in counter-ISIS operations, with total munitions spending at $16.4B.

The U.S. Air Force's MH-139 Grey Wolf helicopter has reached Initial Operational Capability (IOC), according to the Air Force Global Strike Command. The Grey Wolf, which replaces the UH-1N Huey, offers improved speed, range, and payload, supporting missile-field security and ICBM convoy operations. The IOC coincides with the transition to the new Sentinel ICBM, which requires upgraded supporting infrastructure. Boeing received a $173 million contract for additional helicopters in 2025.

Argus upgraded Boeing (BA) from Hold to Buy, citing strong backlog, revenue growth, and improved cash flow. Q2 2026 revenue was $24.6B, with $1.4B in operating cash flow. The company's backlog is $715B. Argus set a $265 price target, implying 26% upside. Concerns include profitability and high leverage.