SAN DIEGO - Northrop Grumman Corporation (NYSE: NYSE:NOC) has been awarded a follow-on contract by the U.S. Navy, valued at over $161 million, for the production and delivery of the next generation JCREW/DRAKE 2.0 systems, an electronic countermeasure technology aimed at enhancing protection for U.S. forces from improvised explosive devices (IEDs) and unmanned aircraft systems (UAS).
The JCREW/DRAKE 2.0 systems are designed to provide 360 degrees of protection and feature advancements in signal processing, frequency range, instantaneous bandwidth, and user interface. These systems are intended to operate independently or integrate with other Command and Control (C2) systems, such as Northrop Grumman’s FAAD C2 system, to offer a comprehensive defense.
Gordie Russell, vice president of communications solutions at Northrop Grumman, stated, "JCREW/DRAKE continues to prove itself as a critical component in protecting our warfighters while maintaining the strategic advantage needed to succeed across the modern battlefield."
The JCREW component of the system, which addresses counter-IED capabilities, has reached Full Rate Production as a Technology Readiness Level (TRL) 9 system and is a Program of Record with Naval Sea Systems Command. It achieved Full Operational Capability ahead of schedule in July 2023 and is currently in use by the U.S. Navy, U.S. Air Force, and the militaries of Australia and New Zealand.
The DRAKE component, targeting counter-UAS capabilities, was added to the Army’s Joint Counter-small Unmanned Aircraft Systems (C-sUAS) Office list of recommended systems in May 2023 and became its own Navy Program of Record under the Program Executive Office Unmanned and Small Combatants, Expeditionary Missions Program Office in April 2024.
Northrop Grumman is a global aerospace and defense technology company that provides solutions for global security. This contract signifies the Navy's continued investment in advanced technologies to protect service members in various operational environments. The information in this article is based on a press release statement.
In other recent news, Northrop Grumman Corporation has been awarded a contract by the U.S. Missile Defense Agency to advance the development of the Glide Phase Interceptor, a system designed to neutralize hypersonic missile threats. The company has also demonstrated a new hybrid satellite communications system, marking significant progress in resilient connectivity for U.S. defense operations. Furthermore, Northrop Grumman and the Lithuanian government have signed a Memorandum of Understanding to support the Baltic nation's defense industry, specifically in the production of medium-caliber ammunition for Infantry Fighting Vehicles.
Northrop Grumman has scheduled the release of its third-quarter 2024 financial results for late October, with a live webcast to accompany the announcement. As part of recent analyst interactions, TD Cowen has maintained a Hold rating on Northrop Grumman, while Deutsche Bank has upgraded the stock from Hold to Buy.
In terms of technological advancements, the company successfully tested the MQ-4C Triton's navigation capabilities in the Arctic region and made progress in the development and testing of the B-21 Raider. Additionally, Northrop Grumman stands to benefit from the U.S. preparing to deliver a substantial $375 million military aid package to Ukraine. These are all recent developments in Northrop Grumman's operations and financial status.
InvestingPro Insights
As Northrop Grumman (NYSE: NOC) secures a substantial contract with the U.S. Navy, the company's financial health and market performance become increasingly relevant to investors and stakeholders. According to real-time data from InvestingPro, Northrop Grumman boasts a robust market capitalization of $76.57 billion, reflecting its significant presence in the aerospace and defense sector. The company's dedication to shareholder returns is evident, with a dividend yield of 1.56% and a remarkable track record of raising its dividend for 20 consecutive years, signaling financial stability and confidence in its future earnings.
InvestingPro Tips highlight Northrop Grumman's position as a prominent player in the Aerospace & Defense industry, which is underscored by its ability to maintain dividend payments for 54 consecutive years. The company's stock has shown a strong return over the last three months, with a 22.88% price total return, aligning with the positive news of the latest Navy contract. With analysts predicting profitability this year and a profitable performance over the last twelve months, Northrop Grumman's financial outlook appears positive.
For investors seeking more in-depth analysis, additional InvestingPro Tips are available, offering a comprehensive view of the company's financial metrics and market position. Visit https://www.investing.com/pro/NOC for a full list of tips and insights tailored to Northrop Grumman.
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