The Boeing Company BA recently clinched a modification contract to provide service life extension of F/A-18 Block II Super Hornet aircraft from 6,000 flight hours to 10,000 flight hours. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.
Valued at $198 million, the contract also provides for integration of Block III avionics capabilities for the Navy and is slated to be completed by February 2027. The work related to this deal will be carried out in San Diego, CA; San Antonio, TX; and St. Louis, MO.
What’s Favoring BA Stock?
Rising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their spending on combat-proven jets, which constitute an integral part of their defense structure.
This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 4.7% for the military aviation market during the 2025-2030 period. These projections indicate significant growth opportunities for leading combat jet manufacturers like Boeing.
Boeing’s F/A-18 Super Hornet is the most advanced, cost-effective and readily accessible combat aircraft in the U.S. Navy fleet. The battle-tested Super Hornet outperforms present and future threats with its state-of-the-art, next-generation multi-role strike fighter capability. It can also perform almost any tactical mission, such as air superiority, day and night strikes with precision-guided weapons, fighter escort and close air support.
The company’s military jet portfolio also includes other combat-proven aircraft, such as the F-15EX, P-8, T-7A Red Hawk, EA-18G Growler, and a few more.
Opportunities for Other Aerospace Defense Stocks
Other aerospace defense companies that are likely to reap the benefits of the military aviation market are listed below:
Northrop Grumman Corp. NOC: It is a leading provider of manned and unmanned air systems. It builds some of the world’s most advanced aircraft like the E-2C Hawkeye 2000, A-10 Thunderbolt II, F-5 Tiger Fighter Jet and many more.
In September 2025, NOC and Wojskowe Zak??ady Lotnicze signed a Memorandum of Understanding to strengthen allied industrial cooperation and advance Poland’s national defense capabilities through the E-2D Advanced Hawkeye, promoting NATO interoperability and joint operational readiness.
Lockheed Martin Corp. LMT: The company is among the leaders in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft, such as the F-35 Lightning II, F-21, F-22 Raptor, F-16 Fighting Falcon and a few more.
In September 2025, LMT’s unit Skunk Works introduced Vectis, a Group 5 survivable and lethal collaborative combat aircraft to advance unparalleled air dominance for American and allied militaries.
Embraer S.A. ERJ: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano, P600 AEW&C and the C-390 Millennium military multi-mission aircraft.
In September 2025, ERJ and Panama finalized a contract for the acquisition of four A-29 Super Tucano aircraft. The fleet will be operated by the Panamanian National Air and Naval Service as a new platform for surveillance and national protection.
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The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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