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Northrop Grumman Corp.’s NOC business unit, Northrop Grumman Systems, recently clinched a modification contract involving its E-2C and E-2D Hawkeye jets. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.
Details of NOC’s Deal
Valued at $24.1 million, the contract is expected to be completed by April 2026. Per the terms of the deal, Northrop will provide continued sustainment and technical support to aid E-2C and E-2D aircraft as well as common and unique requirements.
The contract includes foreign military sales to the governments of France, Japan, Taiwan and Egypt. The majority of the work related to this deal will be executed in Melbourne, FL, and Misawa, Japan.
Significance of NOC’s E-2C & E-2D Jets
Northrop’s E-2D Hawkeye aircraft boasts battle management, theater air, missile defense and multiple sensor fusion capabilities in an airborne system. These provide the warfighter with expanded battlespace awareness, especially in the area of information operations.
Through its effective radar sensor and robust network-enabled capability, the Advanced Hawkeye aircraft provides critical, actionable data to joint forces and first responders.
On the other hand, Northrop’s E-2C Hawkeye is a modern airborne early warning aircraft that helps the U.S. Navy stay prepared in changing combat situations. It supports missions like air and missile defense by improving how information is shared and used.
These features must have been driving strong demand for these fighter jets. The latest contract win reflects another example of the aforementioned jets enjoying significant demand in the military aviation space, which, in turn, should boost NOC’s top-line performance.
NOC Stock’s Growth Potential
Rising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their defense spending on combat-proven jets, which constitute an integral part of their defense structure.
This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 4.7% for the global military aviation market during the 2025-2030 period.
Such growth prospects should benefit Northrop as its product portfolio offers a wide range of manned and unmanned aircraft that already enjoys an established position in the military aviation market. In addition to the E-2C and E-2D Hawkeye jets, its aircraft portfolio features a wide range of jets such as the A-10 Thunderbolt II, F-5 Tiger, B-2 Spirit Stealth Bomber and several others.