Boeing Stock Rises After Sealing $8.6 Billion F-15 Deal With Israel Air Force

This article first appeared on GuruFocus.

Boeing (NYSE:BA) secured a contract worth up to $8.6 billion from the U.S. Air Force to build F-15 fighter jets for the Israeli Air Force.

The agreement covers the design, integration, testing, production, and delivery of 25 new F-15IA aircraft, with an option to add another 25 jets. Work will take place in St. Louis, Missouri, and is expected to conclude by the end of 2035.

Separately, Boeing received a modification to a prior U.S. Air Force contract for depot maintenance and supply management services in Oklahoma City. The award was increased to $4.2 billion from $1.5 billion, extending the company’s existing support role.

With F-15IA, it is evident that Boeing is not out of the game as far as the U.S. defense export and foreign military collaboration is concerned. It is also an indication that people continue to desire advanced fighters due to the security events going on in the Middle East.

Shares of Boeing have shown modest gains following the announcement.