AAI Unmanned Aircraft Systems (‘UAS’), an operating unit of Textron Inc. (TXT), has entered into a five-year agreement with the U.S. Army Research, Development and Engineering Command, Communications-Electronic Research, Development and Engineering Center (‘CERDEC’).
Under the cooperative research and development agreement (CRADA), AAI UAS and CERDEC will work together on various payloads for three classes of UAS — tactical, small and miniature, also known as Groups 1, 2 and 3.
As per the agreement, CERDEC and AAI engineers will explore whether various CERDEC payload concepts can be integrated onto AAI-provided UAS. During phase 1 of the CRADA, AAI will provide CERDEC an Aerosonde Mark 4.7 aircraft for payload development meeting the aircraft’s specifications.
The Aerosonde Mark 4.7 Small Unmanned Aircraft System is a highly expeditionary system that can be used for shipboard or ground-based intelligence, surveillance and reconnaissance missions. The system has a large payload capacity, modular design and open architecture that is ideally suitable for CERDEC.
AAI’s experienced UAS operators will fly the aircraft for capabilities demonstration on completion of successful payload integration.
Other UAS platforms available to CERDEC include AAI’s renowned Shadow Tactical UAS and the electric Orbiter Miniature UAS. The three classes of UAS, together, can help the users to address the spectrum of mission requirements and tactical environments.
Textron’s geographically-diverse network of aircraft, defense & intelligence, industrial and finance businesses counters any specific business risk. We believe Textron should also do well in its commercial aerospace businesses with the gradual recovery in the economy.
However, Textron remains exposed to defense spending cuts. Moreover, a slower recovery in the business jet market could lead to deferrals of orders in its backlog. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. The company mainly competes with General Electric Company (GE) and United Technologies Corporation (UTX).
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