Boeing wins $119.7m contract for Australian and US P-8A upgrades

Lockheed Martin, Boeing, and Curtiss-Wright secured U.S. Navy contracts. Leonardo DRS partnered with AeroVironment for anti-drone lasers. Democrats' midterm wins may impact Trump's $1.5T 2027 defense budget. Defense stocks like LMT, LHX, RTX, and NOC fell. L3Harris, Boeing, and HII reported strong Q3 earnings. Curtiss-Wright (CW) raised its 2026 EPS forecast after a 10% revenue increase and $1.1B in new orders. Leidos (LDOS) beat EPS estimates but missed revenue forecasts.

Russia extended a policy allowing airlines to retain Boeing and Airbus aircraft leased from foreign owners until 2028, according to government reports. The measure, initially set to expire in 2024, has been extended twice. As of now, 407 aircraft remain in Russia, with 202 settled with foreign lessors. The U.S. has permitted Boeing to resume cooperation with Belarusian airline Belavia, which received a Boeing aircraft despite sanctions.

The FAA ordered inspections on 60 Boeing 787s and 31 Boeing 747s due to potential sealant defects in fuel tanks, which could pose an ignition risk during lightning strikes. Airlines must inspect and repair affected areas, with the directive taking effect on 7 December 2026. The FAA estimates the checks will take 34 work-hours per aircraft and cost around $2,890 per jet.

Avolon, an Irish aircraft leasing company, has finalized an order for 140 Boeing 737 Max 10 aircraft, increasing its firm orders with Boeing to over 240. The deal, valued at approximately $16.6 billion at list prices, strengthens Avolon's narrow-body aircraft portfolio and market position. Boeing's 737 Max 10, designed for 230 passengers, is pending FAA certification, which has faced delays.

Boeing received a $119.65M contract to upgrade P-8A Poseidon aircraft for the U.S. Navy and Australia, adding advanced submarine-hunting capabilities. The deal includes nine retrofit kits, with seven for the U.S. and two for Australia. The P-8A, based on the 737 airframe, is the Pentagon's primary submarine hunter. Separately, the Navy is adopting Boeing's MQ-25A Stingray, an unmanned tanker, to replace F/A-18E/F Super Hornets in refueling roles.

Boeing secured $136.57M in U.S. military contracts, including $119.65M for P-8A Poseidon upgrades and $16.91M for Japan's E-767 support. The Navy modification covers retrofit kits for U.S. and Australian aircraft, with work set to finish by May 2030. The Air Force contract extends technical support for Japan's E-767 fleet until 2027.