BAE Systems Supplies CV90 MkIV Combat Vehicle to Czech Army

BAE Systems plc BAESY has unveiled its latest combat vehicle, CV90 MkIV, for the Czech Army, with production plans calling for 39 units to be built at the company’s Swedish facilities and 207 in the Czech Republic. Final deliveries are slated to be completed by 2030.

The staged rollout is designed to provide the Czech Army with a seamless transition, enabling crew training, integration into mechanized brigades and substantially enhancing the army’s overall capabilities.

BAE Systems’ CV90 MkIV Overview

The CV90 MkIV represents the latest evolution of the battle-tested CV90 family of combat vehicles, engineered to provide troops with a decisive edge on today’s complex battlefields. With its blend of exceptional mobility, powerful firepower and advanced protection systems, the vehicle is built to function seamlessly across a wide range of scenarios, from high-intensity combat to peacekeeping missions.

Equipped with a new engine delivering up to 1,000 horsepower and an upgraded X300 heavy-duty transmission, the CV90 MkIV raises its Gross Vehicle Weight Rating from 35-38 tons, providing an additional three tons of payload while maintaining agility.

Growth Potential for BAESY & Other Defense Stocks

Rising security challenges are driving nations to strengthen their military capabilities. As a result, defense budgets are increasingly being directed toward modernizing equipment with advanced technologies to ensure a capable and competitive force. In particular, armored combat vehicles have attracted substantial investment, given their versatility and critical role in ground operations.

Per the reports from the Mordor Intelligence firm, the global armored vehicle market is likely to register a CAGR of 5.7% during the 2025-2030 period. Such abounding growth trends indicate ample growth opportunities for BAE Systems as it enjoys a lucrative position in the armored vehicle market.

Other defense majors that are likely to reap the benefits of the expanding armored fighting vehicle market are Textron Inc. TXT, RTX Corporation RTX and General Dynamics Corp. GD.  

Textron's COMMANDO armored vehicle series offers the best combination of combat-proven lethality, survivability, mobility and sustainability. This vehicle can also be used as an ambulance, armored personnel carrier or support utility vehicle in a variety of configurations.

Textron boasts a long-term (three to five years) earnings growth rate of 10%. The Zacks Consensus Estimate for 2025 sales indicates an improvement of 8.1%.

RTX’s XM30 Combat Vehicle is a next-generation tracked and armored fighting vehicle designed to meet the crucial problems of the future battlefield. It offers unrivaled troop protection and incorporates technology to keep men and women in armor ahead of the enemy.

RTX boasts a long-term earnings growth rate of 9.1%. The Zacks Consensus Estimate for 2025 sales implies an increase of 6.1%.

General Dynamics’ Land Systems unit is a global leader in designing, engineering, producing, supporting and sustaining tracked and wheeled military equipment. Its product portfolio, which includes the M1 Abrams Main Battle Tank, the Stryker and LAV family of wheeled vehicles, the M10 Booker combat vehicle and the AJAX armored brigade of fighting vehicles, enjoys strong demand in the military landscape.

GD’s long-term earnings growth rate is 10.7%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 7.2%.

BAESY Stock Price Movement

In the past year, BAE Systems shares have risen 31.8% compared with the industry’s growth of 34.3%.

BAESY’s Zacks Rank

BAE Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research