Mississauga aerospace firm announces major contracts with Boeing, F-35 program

f-35-lockheed-martin-us-navy-magellan-aerospace-fae-systems-ediweekly

Magellan Aerospace, the Mississauga-based designer and manufacturer of components and assemblies for aerospace markets, announced today that its decade-long contract with BAE Systems to produce horizontal tail assemblies for the Lockheed-Martin F-35 Lightning II jet fighter aircraft will continue for another two years. The value of the two-year continuation of the existing contract is more than CDN $70 million.

A statement from Magellan says that the horizontal tail assemblies produced at Magellan will be used on the Conventional Takeoff and Landing (CTOL) version of the F-35. There are two other versions in the F-35 program, which has been described in Defence Industry Daily as the largest single global defence program in history, with a total cost of $382 billion. More than 1,000 of the assemblies are expected to be produced over the life of the F-35 program. However, “significant increases” in the annual program quantities for the US Department of Defence and other buyers could result in production of up to 4,000 F-35 fighters globally. Magellan could earn up to $2 billion, according to the director of the F-35 program, Scott McRady.

Magellan’s projected total revenues for the F-35 program could reach CDN $2.0 billion based on the current anticipated aircraft requirements. We are seeing significant increases in annual program quantities from both the US DoD and the international partners. The program could produce up to 4,000 F-35 fighters globally.

It was the second announcement in just over a week. On October 13, Magellan finalized agreements with Boeing Co. for work on the 777X program and on the 787 Dreamliner. The Boeing 777X is scheduled to begin flying in 2020 and has been called the world’s largest and most efficient twin-engine jet. Magellan will manufacture complex titanium components for the craft, at plants in New York State and Kitchener, Ontario.  The work on the Dreamliner is an extension of an existing agreement.

Magellan’s stock rating was raised to “Buy” earlier this week by three market analysts. Stock prices opened at $16.73 on Monday. The company has a market capitalization of $972.09 million. Targets for the stock range from $21.00 (Canaccord Genuity) to $23.75. Share prices have risen 13.21 per cent since March, 18, and the company has outperformed the S&P500 index by 8.26 per cent, according to Seekingalpha.com.

Did you miss this?

Other Popular Stories

  • Ford’s 347 kph GT: World's fastest supercar a testbed for new automotive technology
  • Siemens Canada, Manitoba Hydro sign $800 million contract
  • Bombardier to hit business jet targets: aiming for US$8.5 billion annually by 2020
  • Solar researchers closing in on 50 per cent PV efficiency
  • New Samsung-Pattern wind farm underway with Siemens-built turbines
  • If Keystone XL dies, will Energy East replace it?
  • Wholesale trade saw healthy gains in 2014: Statistics Canada
  • Transit groups call Ontario budget a step in the right direction
  • Long March 3B rocket launch destroys home as lower rocket booster crashes during launch
  • California to test grid-scale power-to-gas energy storage
  • MRO in space: Inside a routine Maintenance-Repair-and-Overhaul mission with NASA: sealing, lubricating and keeping cool
  • Oxygen from moondust? The European Space Agency is working on an "breathable air" plants for moon bases
  • Canada's economy grew in Q4, manufacturing up in December
  • Ontario Local Food Bill hailed by farm/food groups
  • World's largest twin engine Airbus A350-1000 passes extreme weather tests for hot weather above 40 degrees celsius
  • Organic, water-based battery a game-changer for renewable energy
  • Ontario's FIT program ruled illegal by World Trade Organization
  • Economy shows strength in third quarter
  • Canadian Mining Fueling the Alternative Power Boom
  • With a 500 km range and 408 horsepower, Volvo's new Polestar EV may rival Tesla
Scroll to Top