Boeing (BA) Secures Major Navy Contract as Ratings Agencies Turn More Positive

The Boeing Company (NYSE:BA) is one of the best aerospace and defense stocks to buy, according to Wall Street analysts. On December 16, Boeing landed a $930.77 million U.S. Navy contract to extend the service life of up to 60 F/A‑18 E/F Super Hornets. The agreement covers upgrades that will push the aircraft’s lifespan from 6,000 to 10,000 flight hours and add Block III avionics capabilities.

Work will be split between San Diego and San Antonio, each handling 44%, with the remaining 12% completed in St. Louis. The program runs through November 2028. No funds were obligated at the time of award; instead, financing will be assigned as individual orders are issued. The Naval Air Systems Command in Patuxent River, Maryland, is overseeing the contract.

On December 12, Moody’s reaffirmed Boeing’s Baa3 senior unsecured rating and revised its outlook to stable after the company completed its acquisition of Spirit AeroSystems. The agency pointed to improvements in quality and safety, strong liquidity of about $29 billion, and Boeing’s solid position in both commercial and defense markets. Boeing’s backlog stood at $636 billion at the end of September, equal to roughly eight to nine years of production.

Moody’s said Boeing is likely to prioritize balance sheet repair, with significant debt coming due in 2026 and 2027. Free cash flow is expected to turn positive in 2026 and improve in the years that follow. The Spirit deal was considered ratings-neutral, aided by Boeing’s repayment of $3 billion of Spirit’s secured debt, while governance scores were raised to reflect better oversight and production discipline.

Separately, on December 12, Citi initiated coverage of Boeing with a Buy rating and a $265 price target, calling the company a compelling large‑cap turnaround play amid long‑term aerospace “megatrends.”

The Boeing Company (NYSE:BA) is a global aerospace leader that designs, manufactures, and supports commercial jetliners, military aircraft, satellites, missile defense systems, and space technologies. The company operates through three divisions: Commercial Airplanes; Defense, Space & Security; and Global Services, which provides maintenance, engineering, supply chain, training, and digital solutions to customers worldwide.

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Disclosure: None. This article is originally published at Insider Monkey.