Boeing Secures a $2.81B Contract to Upgrade South Korea's F-15 Fleet

The Boeing Company BA has secured a contract to support the modernization of F-15 fighter aircraft operated by South Korea, strengthening its position in the global military aviation market.

Valued at $2.81 billion, the contract is expected to be completed on Dec. 31, 2037. Per the contract, Boeing will design and develop an integrated suite of aircraft systems for upgrading the Republic of Korea Air Force’s F-15K fleet. The award has been provided by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH. The work related to the contract will be carried out in St. Louis, MO.

Benefits of the Deal

This contract strengthens BA’s position as a key provider of fighter aircraft upgrades for international defense customers. The long-term nature of the agreement provides better revenue visibility while supporting steady defense-related work over the life of the program. Additionally, the F-15K upgrade program reinforces Boeing’s defense partnership with South Korea and helps maintain its regional presence, which could support future modernization and follow-on defense opportunities.

Growth Prospects

According to a report from Mordor Intelligence, ongoing geopolitical tensions worldwide are prompting countries to increase defense spending to strengthen their military capabilities. This trend has driven higher demand for fighter jets, which remain a critical component of national defense systems. Mordor Intelligence also forecasts that the military aviation market will witness a compound annual growth rate of 4.59% during the 2026-2031 period.

Such projections indicate immense opportunities for Boeing to reap the benefits of military aviation market expansion, with the company being one of the largest jet makers in the United States and one of the biggest weapons exporters in the world.

The company’s major combat aircraft programs include the MQ-25 unmanned aircraft system, the AH-64 Apache helicopter, the CH-47F advanced multi-mission helicopter, the F/A-18 Super Hornet tactical aircraft and the MH-139A Grey Wolf multi-mission helicopter.

Opportunities for Other Defense Stocks

Some other defense players that can gain from the expanding military aviation market are discussed 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, E-2D Advanced Hawkeye, F-5 Tiger Fighter Jet and many more.

Northrop has a long-term (three to five years) earnings growth rate of 4.8%. The Zacks Consensus Estimate for NOC’s 2026 sales indicates year-over-year growth of 4.6%.

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 and F-16 Fighting Falcon.

Lockheed boasts a long-term earnings growth rate of 11.9%. The Zacks Consensus Estimate for LMT’s 2025 sales implies an improvement of 4%.

Embraer EMBJ: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.

Embraer boasts a long-term earnings growth rate of 14.3%. The Zacks Consensus Estimate for EMBJ’s 2026 sales indicates year-over-year growth of 12.2%.

BA Stock’s Price Movement

BA shares have risen 32.2% in the past year compared with the industry’s 29.3% growth.

BA’s Zacks Rank

BA currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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