Evergreen Helicopters, Inc. - a wholly-owned subsidiary of
Erickson Air-Crane Inc.
) - has received two contract extensions with Special Operations
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Per the contract, Evergreen Helicopters will provide a fleet of
fixed and rotary wing aircraft for personnel and cargo transport
for the Department of Defense in Central Africa. The aggregate
value of the contract option is more than $8 million.
Founded by aviation pioneer Delford Smith, Evergreen Helicopters
is a diversified provider of air transport services worldwide for
cargo and personnel to government and commercial customers.
On May 2013, Erickson Air-Crane − the renowned operator and
manufacturer of the Erickson S-64 Aircrane heavy-lift helicopter
− acquired Evergreen Helicopters. Recently, Evergreen Helicopters
extended its contract with Fluor Corp. The value of the contract
is more than $100 million. Per the contract, the company will
provide multiple rotary wing aircraft for cargo as well as
transport mission requirements. These aircraft will be used by
Afghanistan forces. This contract extension would continue to
meet significant, urgent and ongoing needs of various aviation
services work in Afghanistan.
Erickson Air-Crane also extended its contract with the U.S.
Transportation Command to provide essential services to support
overseas operations in Afghanistan.
The company is of late generating substantial revenues from
contract renewals, which provide visibility to future growth.
Strategic acquisitions, going forward, would also continue to
strengthen Erickson's leading position in the heavy-lift market.
Erickson Air-Crane's stand-alone business combined with the
Evergreen acquisition is expected to provide the company with an
incremental fleet of 64 aircraft comprising helicopters and
fixed-wing airplanes. The diverse fleet serves a wide range of
customers and provides significant passenger transport and
airlift services for the U.S. military.
The company presently retains a short-term Zacks Rank #1 (Strong
Buy). Other stocks to consider are
The Boeing Company
Northrop Grumman Corporation
), all with a Zacks Rank #2 (Buy).