Meggitt plc (LON: MGGT) have won a big contract with the Defense Logistics Agency in Philadeplphia, as it was reported on Tuesday.
Shares in Meggitt rallied 2.73% after the impressive announcement, and currrently trade at 647p. 19/11/19 10:45BST.
Meggitt are a British based engineering firm, who specialize in aerospace and defense equipment, and have their headquarters in Bournemouth.
Megitt will supply fuel bladders to the F/A-18 Super Hornet, V-22 Osprey and the CH/MH-53 Super Stallion to the Defense Logistics Agency in Philadelphia.
The fact that Meggitt have won this contract will impress shareholders, considering the size and reputation of the client.
The Defense Logistics Agency is part of the US Department of Defense, and they manage the global supply chain of equipment for the army, navy and air force.
Specifically, Meggitt will supply fuel bladders for the F/A-18 Super Hornet, V-22 Osprey and CH/MH-53 Super Stallion aircraft.
The terms of the contract are yet to be fully released, however it was reported that the contract extension has a potential value of $130 million, which will tease stakeholder appetite.
The deal will last six years and deliveries are set to commence in early 2020.
Last year, the FTSE100 (INDEXFTSE: UKX) listed firm landed an impressive deal for Black Hawk helicopters, with the same client and this deal will only continue to impress both the market and traders.
In a market where competitors have made significant strides, this deal will certain please both seniority and shareholders, with shares surging after the positive announcement was made on Tuesday.
Competitors have made gains in the industry, where QinetiQ Group plc (LON: QQ) reported strong gains in their most recent update.
Additionally, Ultra Electronics (LON: ULE) met market expectations in their most recent update, however it seems that the domination of firms such as Lockheed Martin (NYSE: LMT) and Boeing (NYSE: BA) is still very evident.
