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Orbital ATK (OA) Wins 3-Year United Launch Alliance Deal

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Orbital ATK, Inc.OA , a leading aerospace and defense company, recently won a 3-year contract from United Launch Alliance ("ULA") to manufacture large-scale composite structures for Atlas V and Delta IV vehicles. This is part of the ongoing United States Air Force Evolved Expendable Launch Vehicles ("EELV") programs.

The fabrication work of the order including fairings, payload adapters and diaphragms will be conducted at Orbital ATK's Large Structures Center of Excellence (COE) in Iuka, MS.

This contract extends ULA's partnership with Orbital ATK having recently delivered an Atlas V 401 rocket for launching the latter's Cygnus spacecraft. ULA is a joint venture between Lockheed Martin Corporation LMT and Boeing BA .

The importance of composite structures in the development process of the entire spacecraft cannot be discounted. Orbital ATK has for a long time been a supplier of high-precision and expertly engineered composite parts, retro motors, solar arrays and other parts which are integral to this process.

The global ammunition market is estimated to have an aggregate value of $7.78 billion by 2020, at a CAGR of 1.93% from 2015 to 2020 primarily driven by the increase in transnational disputes and terrorism. The resultant rise in national security risk and the impact on the masses have led governments and military to source and maintain inventory of advanced warfare artillery.

Along with other major defense players, Orbital ATK is adopting strategies such as product developments, long-term contracts, and business expansion to strengthen its positions in the global ammunition market. The company is also focusing on considerable capital investment in R&D to introduce advanced ammunition with higher precision and lower weight.

Zacks Rank

Orbital ATK currently has a Zacks Rank #2 (Buy). A better-ranked aerospace and defense stock is TransDigm Group Incorporated TDG sporting a Zacks Rank #1 (Strong Buy).

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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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