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Textron Unit Gets $84 M U.S. Navy Contract for SSC Program - Analyst Blog

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Textron Inc.TXT recently announced that its unit Textron Systems Marine & Land Systems has received a contract worth nearly $84.1 million from the U.S. Navy Naval Sea Systems Command for two next-generation Landing Craft, Air Cushion ("LCAC") vehicles and associated technical manuals as part of the Ship-to-Shore Connector ("SSC") program.

Per the contract, the Textron unit will assemble crafts 102 and 103 at its New Orleans Shipyard with deliveries expected in the fourth quarter of 2019. The new SSC crafts will gradually replace the existing LCAC vehicles of the Navy, which are approaching the end of service life.

The new advanced and technically sound crafts will not only enable U.S. Navy personnel in hostile situations but also allow them to carry humanitarian and disaster relief missions. The new vehicles are expected to serve for 30 years.

The new SSC crafts will have an advanced skirt, a pilot/co-pilot arrangement, a cargo deck to accommodate a 74 short ton payload (up to M1A1 Tank), and more powerful, fuel efficient Rolls-Royce engines. The SSC program requirement is for a total of 73 crafts. Textron Systems is fabricating and assembling the craft in such a manner so as to lower ownership cost for the Navy.

The diverse product offering of Textron enables it to win contracts from defense as well as non-defense customers. Last month, Textron received a contract to supply 200 upgraded Bell 407 GXPs from Air Methods Corporation (AIRM) (read: Textron (TXT) to Supply 200 Upgraded Bell 407 to Air Method ).

Textron Inc. currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the space are Huntington Ingalls Industries, Inc. HII , Air Industries Group AIRI and General Dynamics Corporation GD . Huntington Ingalls sports a Zacks Rank #1 (Strong Buy), while Air Industries Group and General Dynamics have a Zacks Rank #2 (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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