The Boeing Company BA recently clinched a contract for delivering 210 of its widebody aircraft from Qatar Airways. Per the terms of the contract, Boeing will deliver 130 787 Dreamliners and 30 777-9s aircraft, with the option for supplying an additional 50 787 and 777-9 jets.

BA’s 787 Dreamliner and 777-9s Aircraft

The Boeing 787 Dreamliner family has unparalleled fuel efficiency and range flexibility. The airplane’s lightweight and strong composite structure helps cut fuel use and emissions by 25%.
On the other hand, Boeing’s 777-9s is the world’s largest twin-engine airplane that is designed to set new standards in efficiency by reducing fuel use and emissions by 25% compared with its predecessors while elevating the passenger flight experience.

These features must have been driving strong demand for Boeing’s commercial aircraft. The latest contract win is yet another example of that.

Growth Prospects for BA Stock

Rising air passenger traffic and the increasing demand for fuel-efficient and modern aircraft are driving growth in the commercial aviation market. Airlines are, thus, increasingly prioritizing advanced aircraft models with improved fuel efficiency and range, further boosting market growth.

This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of more than 6.5% for the global commercial aviation market during the 2025-2030 time period.

Such solid market prospects offer strong growth opportunities for Boeing, which has more than 14,000 jetliners in service worldwide. The company’s commercial aircraft backlog of more than 5,600 airplane valued at $460 billion (as of March 31, 2025) further indicates the increasing demand for its new fuel-efficient aircraft. The latest contract win should further boost this aerospace giant’s commercial backlog count and enable it to further improve its revenue performance.

Opportunities for Other Defense Stocks

Other defense companies that are expected to enjoy the perks of the expanding global commercial aviation market have been discussed below.

Airbus SE EADSY: It has more than 12,000 commercial aircraft in service worldwide. Airbus provides modern, fuel-efficient aircraft that help airlines reduce their carbon footprint. The company’s portfolio includes the A220 Family, A320 Family and A380 aircraft.

The company has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for EADSY’s 2025 sales indicates year-over-year growth of 10.4%.

General Dynamics Corporation GD: It is a renowned producer of business jets and provider of aircraft repair, support and completion services. The company’s portfolio includes the G400, G800 and G650ER jets.

The company’s long-term earnings growth rate is 10%. The consensus estimate for GD’s 2025 sales indicates year-over-year growth of 5.7%.

Textron, Inc. TXT: Its unit, Cessna, offers a range of aircraft for the commercial market, including business jets, turboprops and piston-engine aircraft. Some of its products include the Garmin G3000 Prime, Citation Longitude and Citation CJ4 Gen3.

TXT boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT’s 2025 sales indicates year-over-year growth of 6.8%.

Story Continues

BA Stock’s Price Movement

Shares of BA have gained 11.9% in the past three months compared with the industry’s 10.3% growth.Zacks Investment Research

Image Source: Zacks Investment Research

BA’s Zacks Rank

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

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

The Boeing Company (BA):Free Stock Analysis Report

General Dynamics Corporation (GD):Free Stock Analysis Report

Textron Inc. (TXT):Free Stock Analysis Report

Airbus Group (EADSY):Free Stock Analysis Report

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

Zacks Investment Research

View Comments