Northrop (NOC) Receives $306M Global Hawk Contract - Analyst Blog

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Northrop Grumman Corporation ( NOC ) has won a $306 million contract from the U.S. Department of Defense (DoD) for support of RQ-4 Global Hawk drone. Per the contract, Northrop will continue to provide sustainment services on the RQ-4 Global Hawk.

Northrop already has a contract with the DoD to provide maintenance and inventory management services for the Global Hawk unmanned aircraft system, inclusive of the aircraft and the mission control elements. The new contract is an extension of the present contract.

Northrop's Global Hawk aircraft system has won multiple contracts since its inception. In Sep 2014, Northrop was awarded with a record $354 million contract by the U.S. DoD to increase its fleet of RQ-4 Global Hawk unmanned aircraft system and bring in additional multi-intelligence capabilities.

The Global Hawk is an unmanned aircraft intelligence, surveillance and reconnaissance (ISR) system capable of flying high altitudes and long hours.

The Global Hawk has gained popularity mainly on its ability to transform itself into an operational weapons system when required. It was not only used by the Air Force for maintaining overseas surveillance after the Sep 11, 2001 terrorist attacks, but has also been extensively used by National Aeronautics and Space Administration (NASA) for its scientific research missions.

Moreover, the system has already covered more than 1,25,000 flight hours till date, which speaks volumes about its indispensability and reliability factor.

Northrop is a leading U.S. defense contractor competing with other defense players like Lockheed Martin Corp. ( LMT ), The Boeing Co. ( BA ) and General Dynamics Corp. ( GD ). It provides a wide range of products like the unmanned systems, cyber and C4ISR to the U.S. government and other international customers.

Northrop continues to win a decent number of contracts from the U.S. DoD because of its innovative systems like the Global Hawk. Its focus on innovation will boost its revenues, going forward.

Northrop currently holds a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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