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Boeing secures $439.6M contract for Space Force satellite

EditorIsmeta Mujdragic
Published 03/05/2024, 09:30 AM
© Reuters.
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EL SEGUNDO, Calif. - Boeing (NYSE:BA) [NYSE: BA] has been awarded a $439.6 million contract by the U.S. Space Force's Space Systems Command to construct the 12th satellite for the Wideband Global SATCOM (WGS) system, which provides secure and resilient communications to the U.S. military and its allies.

The WGS constellation is known for its high-capacity, secure, and responsive communications capabilities. The WGS-12 satellite will incorporate Boeing's new Protected Tactical Satcom Prototype payload, enhancing the system's anti-jam communications. This includes the integration of the Protected Tactical Waveform with antenna nulling in the Ka-band, which is designed to withstand interference, ensuring reliable communications for U.S. warfighters even in contested environments.

Michelle Parker, Boeing's Vice President of Space Mission Systems, stated that the WGS-12 will feature over 1,500 steerable and shapeable beams in the Ka-band, akin to the capabilities of the WGS-11. The satellite's design aims to provide resilient communications to support tactical forces.

Boeing is employing advanced manufacturing and development techniques such as additive manufacturing and rapid prototyping to deliver increased performance with the WGS-12. The satellite is currently under construction at Boeing's facility in El Segundo, California.

As an industry leader in aerospace, Boeing is involved in the development, manufacturing, and servicing of commercial airplanes, defense products, and space systems. The company operates globally, serving customers in over 150 countries, and emphasizes innovation, sustainability, and community impact.

This contract signifies the ongoing collaboration between Boeing and the U.S. military to enhance communication capabilities for national defense.

The information for this article is based on a press release statement.

InvestingPro Insights

Boeing [NYSE: BA], a major player in the Aerospace & Defense industry, recently secured a substantial contract to expand the Wideband Global SATCOM system. According to InvestingPro data, Boeing has a market capitalization of $122.36 billion and has experienced a revenue growth of 16.79% over the last twelve months as of Q1 2023. Despite challenges, analysts are optimistic about the company's future, predicting a return to profitability this year.

InvestingPro Tips highlight that Boeing's stock price is known for its volatility, which investors should consider when evaluating the company's performance. The company's gross profit margins have been weak, standing at 11.89%, reflecting the competitive pressures and high costs associated with the Aerospace & Defense sector. Additionally, Boeing does not currently pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams.

For those considering investing in Boeing, it's worth noting that the company is trading at a high EBITDA valuation multiple, with an adjusted P/E ratio of -128.49 for the last twelve months as of Q1 2023. Investors looking for more in-depth analysis, including additional InvestingPro Tips, can find them on the InvestingPro platform. There are currently 9 additional tips available for Boeing, which can be accessed with a special offer using coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

As Boeing continues to innovate and secure key contracts, such as the recent Space Force agreement, these financial metrics and insights can help investors understand the company's current position and future potential within the industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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