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]