The Boeing Company BA recently secured a modification contract to remanufacture Block I CH-47F Chinook helicopter into Block II. The award is expected to be completed by Dec. 31, 2026.

Valued at $113.1 million, the contract has been provided by the Army Contracting Command, Redstone Arsenal, AL.

What’s Favoring Boeing?

As nations across the globe continue to strengthen their defense structures, spending on military arms and ammunition that boast technologically advanced features continues to increase manifold. This also includes increased investments in military helicopters that play a critical role in air warfare missions. Consequently, aerospace manufacturers like Boeing enjoy a solid inflow of contracts for their combat-proven helicopters.

Notably, Boeing’s CH-47 Chinook is an advanced, multi-mission, tandem-rotor helicopter, proven in cargo and troop transport, search and rescue, casualty evacuation, special operations, humanitarian and disaster relief, and more. Its Block II variation is powered by cutting-edge technologies, including redesigned fuel tanks, a strengthened fuselage and an improved drivetrain, all of which enable soldiers to meet today’s heavy-lift mission requirements.

Such remarkable features of this aircraft must have been boosting its demand. The latest contract win bears a bright example of that.

Considering the fact that CH-47 is the heavy-lift helicopter of choice for the U.S. Army and 20 international operators, with more than 950 Chinooks deployed worldwide, we may expect Boeing to win more similar contracts involving sustainment parts supply in the near future.

BA Stock’s Growth Prospects

The demand for combat helicopters has been rising significantly in recent times, backed by increasing defense investments by nations worldwide amid escalating military conflicts, with these helicopters equipped with advanced weaponry and surveillance systems to ensure superior aerial security. The ability of combat helicopters to perform multiple roles, such as troop transport, reconnaissance and close air support, has amplified their demand over the past decade.

The Mordor Intelligence firm expects the military helicopters market to witness a CAGR of more than 2.9% during the 2024-2030 period.

Such expanding market prospects should boost Boeing’s growth, thanks to its established position in manufacturing combat helicopters like the AH-64 Apache, MH-139, and AH-6 light attack helicopters, as well as the Ch-47 Chinook.

Opportunities for Peers

Other defense primes that are expected to reap the benefits of the military helicopter market have been discussed below.