Is Airbus Strengthening Its Position in Military Helicopters?

Airbus SE EADSY is strengthening its position in the global military helicopter market through its Airbus Helicopters business. Rising defense spending, fleet modernization and demand for versatile rotorcraft are supporting growth in this market. The company’s UH-72 Lakota is an important platform for the U.S. military and supports missions such as training, search and rescue, reconnaissance, MEDEVAC, disaster response and homeland defense.

Derived from the Airbus H145 family, the UH-72 Lakota is a versatile helicopter that can be adapted for different missions and operating conditions. Airbus currently produces the UH-72A and UH-72B variants for U.S. military customers. More than 480 Lakota helicopters are in service, making it the U.S. Army’s third-largest rotorcraft fleet. The fleet has also surpassed 1.6 million flight hours across U.S. Army, Army National Guard and U.S. Navy operations.

Recent contract wins highlight continued demand for the Lakota. Airbus Helicopters Inc. received a $115.4 million U.S. Army contract for up to 12 UH-72B helicopters, related equipment and program management. The contract has a cumulative value of about $140.7 million, with work expected to continue through December 2030.

The Lakota’s established fleet, broad mission capabilities and strong operational record provide Airbus with good visibility into future demand. Continued U.S. defense spending and fleet modernization could further support the company’s military helicopter business.

Other Stocks to Keep on the Watchlist

Other aerospace and defense companies that are likely to benefit from the growing global demand for military helicopters are discussed below:

The Boeing Company BA: Boeing has a broad military rotorcraft portfolio serving U.S. and international defense customers. Its offerings include the H-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey, providing exposure to heavy-lift, attack, reconnaissance and multi-mission helicopter requirements.

Textron Inc. TXT: Through its Bell business, Textron supplies military helicopters to the U.S. government and international customers. Its portfolio includes the AH-1Z and UH-1Y, along with other military and utility rotorcraft, giving the company exposure to continued defense modernization and helicopter fleet demand.

The Zacks Rundown for EADSY

Shares of EADSY have surged 15.6% in the past year compared with the industry’s 13.7% growth.

Image Source: Zacks Investment Research

The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 26.71X compared with its industry’s average of 42.05X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EADSY’s 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

EADSY stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research