Core Insights - BAE Systems Inc. has secured a $204.2 million contract for the maintenance, modernization, and repair of the USS Iwo Jima, expected to be completed by February 2028 [1] - The contract enhances BAE Systems' role as a key support provider to the U.S. Navy, ensuring long-term revenue visibility and stable cash flows [2] Contract Details - The contract encompasses all necessary labor, equipment, testing, facilities, and quality assurance activities [1] - Most of the work will be conducted in Norfolk, VA [1] Industry Growth Prospects - Global defense spending is increasing, particularly on naval vessels, with a forecasted compound annual growth rate of 6.46% for the naval vessels market from 2025 to 2030 [3] - BAE Systems' Platforms & Services business is well-positioned to benefit from this trend, as it manufactures and upgrades combat vehicles and provides naval ship repair [4] Opportunities for Other Defense Stocks - Lockheed Martin's Rotary and Mission Systems unit supports various U.S. Navy programs, with a long-term earnings growth rate of 11.9% [5][6] - Huntington Ingalls Industries constructs various naval vessels and has a long-term earnings growth rate of 14.4% [7][8] - General Dynamics is a leading designer of nuclear-powered submarines, with a long-term earnings growth rate of 13.2% [9] Company Performance - BAE Systems' shares have increased by 89.7% over the past year, outperforming the industry growth of 51.3% [10] - The company currently holds a Zacks Rank of 3 (Hold) [11]

Key Takeaways BAE Systems won a $117.7M contract to maintain, modernize and repair USS Forrest Sherman.Contract covers labor, equipment, testing and QA for the ship's FY2026 depot modernization.The work will be done mainly in Norfolk, VA, with completion expected by August 2027.BAE Systems Inc. (BAESY) recently clinched a modification contract to support the maintenance, modernization and repair of the USS Forrest Sherman (DDG 98). The contract covers all required labor, equipment, testing, facilities and q ...