Textron (TXT) Wins $815M Deal To Repair Combat Helicopters
Zacks Investment Research | Dec 18, 2019 10:00PM ET
Textron Inc.’s (NYSE:TXT) Bell segment recently clinched a contract to repair and upgrade 35 items used on the UH-1Y and AH-1Z helicopters. Majority of the work related to the deal is scheduled to be completed by Fort Worth, TX.
Valued at $815 million, the contract was awarded by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA. Per the terms of the contract, Textron will also be responsible for inventory management, warehousing and establishing supply response time metrics. The contract is expected to be completed by December 2024.
About UH-1Y and AH-1Z Aircraft
Bell UH-1Y, also known as Super Huey, is a twin-engine combat-proven utility helicopter to support U.S. Marine Corps’ global missions. Initially, these helicopters were remanufactured from UH-1Ns. But in 2005, it received approvals to be built as separate units.
With virtually identical front and rear glass cockpits, fully integrated weapons, avionics and communications systems, Bell AH-1Z flies with the most advanced aircraft weapons and survivability equipment in the world. AH-1Z’s Target (NYSE:TGT) Sight System also provides the longest range and highest accuracy among all helicopters.
Our View
Textron's Bell segment is one of the leading suppliers of advanced military helicopters to the U.S. government and military customers outside the United States and secures pivotal contracts like the latest one. Apart from supplying helicopters, the segment also provides invaluable support to offshore petroleum exploration and development, emergency medical helicopter operators, and foreign governments.
With increasing geopolitical tensions worldwide, demand for weaponries is on the rise. To meet this demand, the fiscal 2019 U.S. defense budget provisioned $57.7 billion for military aircraft, which reflects a 4.9% increase from the prior budget. Such favorable budgetary provisions are leading to contract wins for defense contractors and Textron is no exception. This is evident from the latest contract win.
Looking Ahead
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