[ad_1]
Boeing (BA) on Tuesday night lost a contract with the Pentagon to develop a new interceptor to protect the United States against threats from intercontinental ballistic missiles. But Boeing’s stock rose on Wednesday.
X
Instead, Lockheed Martin (LMT) and Northrop Grumman (NOC) won the Next Generation Interceptor contract for technology development and risk reduction.
Lockheed’s contract is worth $ 3.7 billion until August 2025, and Northrop’s is worth $ 3.9 billion until May 2026. The two defense giants will later compete for a future contract. supply.
“By planning to transport two suppliers as part of the technology development, MDA will maximize the competitive advantages to deliver the most efficient and reliable homeland defense missile as quickly as possible,” said Vice Admiral Jon Hill, director of the Missile Defense Agency, said in a statement. “Once commissioned, this new home defense interceptor will be able to defeat the threat advancements expected in the 2030s and beyond.”
Lockheed has also worked with Aerojet Rocketdyne (AJRD), which Lockheed buys. Northrop Grumman has teamed up with Raytheon Technologies (RTX).
IBD Live: a new tool for daily stock market analysis
Boeing Stock
The shares rose 2.3% to 246.70 on the stock market today. Boeing stock is back above a buy point of 244.18, according to MarketSmith chart analysis. Lockheed stock gained 2.2% and Northrop added 2.2%.
The next-generation interceptor will replace interceptors in the current ground-based mid-range defense system, located in Fort Greely, Alaska, and Vandenberg Air Force Base, California.
Boeing is the prime contractor for this system and won a $ 6.6 billion contract in 2018 to replace it. But the Pentagon canceled the Redesigned Kill Vehicle program last year due to technological issues.
“Boeing is disappointed that the US Missile Defense Agency has not advanced our team to the next phase of the competition in the development of the Next Generation Interceptor competition,” the company said in a statement.
“Our proposal to upgrade Midcourse’s current ground defense system leveraged the company’s more than 60 years of experience in missile and weapon systems to deliver an NGI solution that focused on on an innovative design with increased flexibility and modularity.
Follow Gillian Rich onot Twitter for aviation news and more.
YOU MAY ALSO LIKE:
Boeing Stock A Buy as 737 Max Orders Pick Up?
Looking for the next big stock market winners? Start with these 3 steps
The best defense actions for today – and for the future
[ad_2]
Source link