Pentagon Awards Boeing $13.4 Billion Air Force Contract Modification

Boeing and the engineering union reached a tentative contract agreement, according to union officials. The deal could impact labor relations and operational efficiency, which are key factors for investors.

Boeing (BA) increased a contract by $13.4B to $19.1B for Foreign Military Sales, primarily with Japan and Israel. The company's P/S ratio is 1.74, below its historical median, and its GF Value™ suggests it is 0.4% undervalued. BA's GF Score™ is 68, indicating moderate financial health with strengths in valuation and momentum but weaknesses in profitability and financial strength. Insiders have sold more shares than they have bought in the past year, and institutional investors have mixed sentime

The Department of War awarded Boeing (NYSE:BA) a $131.23 billion ceiling contract for the F-15 Eagle Crest program, with $343,740 initially obligated. The contract covers production, upgrades, and sustainment through 2037, including Foreign Military Sales to seven countries. While it provides long-term revenue visibility, the actual spending is uncertain and spread over time.

Boeing Co. received a $13.4 billion contract modification from the U.S. Department of War, raising the total contract value to $19.1 billion. The contract, originally awarded in 2019, includes Foreign Military Sales work for Japan, Israel, and future partners. Work will be completed in Seattle by April 28, 2035, with no funds allocated at the time of the award.

Boeing and Anduril were selected by the U.S. Army for the next phase of a midrange air-defense interceptor program. Boeing handles seeker tech and airframe, while Anduril develops the rocket motor. The interceptor aims to fill a gap in the Army's air-defense network, with a focus on affordability and modular design for easy upgrades. Anduril is expanding its rocket motor production capacity in Mississippi.

The US Army chose Boeing and Anduril for the next phase of the IFPC Increment 2 interceptor program, which aims to protect bases from aerial threats. The companies will now focus on design and development, combining Boeing's seeker tech with Anduril's solid rocket motor. Anduril has invested over $100M in its Mississippi facility, with additional government funding.