Earlier this month, South Korea’s President Lee Jae Myung said that the country will raise defense spending by 8.2% to 66.3 trillion won.
L3Harris Technologies (LHX) said that it has received a contract to deliver modified Bombardier Global 6500 airborne early warning and control (AEW&C) aircraft to the Republic of Korea Air Force, in a contract valued at $2.26 billion.
The company said alongside Bombardier, L3Harris is tying up with Israel Aerospace Industries’ ELTA Systems and Korean Air to provide this advanced capability. “These aircraft will fly faster and operate longer to improve the nation’s mission readiness. They will also cruise at higher altitudes for improved safety and provide combat-proven radar coverage to more quickly detect and track threats,” the aerospace firm said.
Retail sentiment on Stocktwits about L3Harris was in the ‘neutral’ territory at the time of writing.
South Korea’s Defense Push
Earlier this month, South Korea’s President Lee Jae Myung said that the country will raise defense spending by 8.2% to 66.3 trillion won ($47 billion), marking the most significant rise since 2008. U.S. President Donald Trump has been pressuring Asian allies to increase their defense spending to 5% of their gross domestic product, similar to the pledges made by European NATO members.
Bombardier has previously partnered with Europe’s Saab to build AEW&Cs for defense customers. “Amid rising geopolitical tensions, this aircraft is the go-to choice for governments seeking to modernize their capabilities, with the reliability and performance to support the most demanding missions,” said Bombardier CEO Éric Martel.
L3Harris stock has gained 35% this year. The aerospace and defense firm is scheduled to report its earnings on Oct. 30, where analysts expect the company to post earnings of $2.58 per share.
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