Can Rising Fighter Jet Demand Sustain Boeing's Defense Growth?

The Boeing Company BA is seeing encouraging opportunities in its fighter jet business, supported by rising defense spending and growing demand for advanced military aircraft. Governments worldwide are strengthening their air capabilities and replacing aging fighter fleet, creating a favorable environment for defense aircraft manufacturers. Boeing’s portfolio of fighter and trainer aircraft positions it to benefit from this trend.

Boeing’s fighter jet business is supported by programs such as the F/A-18 Super Hornet, F-15EX Eagle II and T-7A Red Hawk. The company also benefits from demand for upgrades and sustainment of existing aircraft, providing additional revenue opportunities.

Looking ahead, Boeing should benefit from fleet modernization and higher defense budgets. The company recently secured a $109 million delivery order from the U.S. Navy for 76 outer wing panels for F/A-18 aircraft. The work is expected to be completed by October 2031, providing long-term visibility and underscoring continued demand to maintain the Navy’s F/A-18 fleet.

Boeing is also seeing opportunities from its F-15EX program, while the T-7A Red Hawk progresses toward production. Management has highlighted F-15EX, T-7, E-7 Wedgetail and MQ-25A as programs that could benefit from higher defense spending.

Overall, strong military aircraft demand, fleet modernization and Boeing’s broad fighter portfolio should support its defense growth prospects.

Industry Peers Benefiting From Fighter Jet Demand

Other industry peers benefiting from rising fighter jet demand and higher defense spending are discussed below:

Lockheed Martin Corporation LMT: It is the producer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.

Northrop Grumman Corporation NOC: It is a leading provider of proven manned and unmanned air systems. It builds some of the world’s most advanced aircraft like the B-2 Spirit Stealth Bomber, A-10 Thunderbolt II and B-21 Raider.

The Zacks Rundown for BA

Shares of Boeing have risen 6.5% in the past month compared with the Zacks aerospace-defense industry’s growth of 8%.

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From a valuation standpoint, BA is currently trading at a forward 12-month sales multiple of 1.71X, a discount when stacked up with the industry average of 2.66X.

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The Zacks Consensus Estimate for BA’s 2026 and 2027 earnings has moved south over the past 60 days.

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BA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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