L-3 Communications Vertex Aerospace LLC, a unit of L-3 Communications Holdings Inc.LLL , has secured a $1.9 billion contract from the U.S. Air Force to supply airframes for the next generation of air refueling tankers.
Per the contract, Madison, MI-based Vertex will provide airframe contractor logistics support for KC/KDC-10 tanker aircraft, the Pentagon said on Wednesday. This includes logistics integration and support to include contractor operated and maintained base supply, aircraft maintenance to include depot and contractor field teams, and also modifications for service bulletins and time compliance technical orders.
Work will be performed at Travis Air Force Base, CA; McGuire Air Force Base, NJ; Greensboro, NC; and the Netherlands, and is expected to be completed by Jun 30, 2025.
Recently, Vertex Aerospace received a contract from the U.S. Navy for logistics services for the C-12 utility lift aircraft. The contract was valued at $302.2 million and will run through Jul 2021. Per the contract, the company will be responsible for post-production services, full aircraft maintenance, logistics support and the supply of materials for Marine Corps Reserve C-12 and US Navy TC-12B trainer aircraft.
L-3 Communications is one of the prime system contractors for aircraft modernization and maintenance; Intelligence, Surveillance & Reconnaissance ("ISR") collection platforms; simulation and training; and government systems support services.
With a market cap of around $10.59 billion, the company has seen its shares soar roughly 19.2% so far this year, outperforming the 4.3% growth of the S&P 500 over the same period.
The company currently has a Zacks Rank #3 (Hold).
Stocks to Consider
A few better-ranked stocks in the aerospace and defense space include BAE Systems plc BAESY , CAE Inc. CAE and Esterline Technologies Corp. ESL . While BAE Systems sports a Zacks Rank #1 (Strong Buy), CAE and Esterline Technologies carry a Zacks Rank #2 (Buy).