Boeing's satellite business booms with $2.8 billion US Space Force contract.

Boeing (BA) has secured a $2.8 billion contract with the US Space Force for satellite communications as part of the Evolved Strategic SATCOM (ESS) program. The agreement has sparked interest in Boeing as a "space technology" stock, with analysts holding a Strong Buy consensus rating and a 4.95% upside potential based on the average price target of $226.42 per share.

Boeing (BA) has secured a significant $2.8 billion contract with the U.S. Space Force for the development and delivery of the first two satellites under the Evolved Strategic Satellite Communications (ESS) program. This contract marks a pivotal step in modernizing the nation's nuclear command, control, and communications (NC3) infrastructure.

The contract, announced on July 3, 2025, by the Space Systems Command (SSC), covers the development and production of four ESS space vehicles. The work will be performed in El Segundo, California, and is expected to be completed by December 31, 2033. The first satellite is anticipated to be delivered by 2031 [2].

The ESS program aims to replace the current Advanced Extremely High Frequency (AEHF) system, providing enhanced anti-jam, secure communications for NC3 users. The satellites will operate in geostationary orbit, offering continuous global coverage to support U.S. strategic forces across various military operations [1].

The contract was competitively awarded, with Boeing's selection following previous ESS prototyping efforts involving Northrop Grumman and Lockheed Martin. Boeing's ESS design incorporates technologies from its Wideband Global SATCOM (WGS)-11 and WGS-12 satellites, as well as the commercially operated O3b mPOWER constellation, ensuring resilience against signal jamming and interception [3].

The contract has sparked interest in Boeing as a "space technology" stock. Analysts have given Boeing a Strong Buy consensus rating, with a 4.95% upside potential based on the average price target of $226.42 per share [2].

The ESS program is part of the broader $12 billion ESS Space Segment acquisition, which includes cryptographic, ground, and user terminal segments. Future satellites may be procured under fixed-price contracts to support full operational capability and global coverage, including enhanced Arctic capabilities [1].

References:
[1] https://www.ssc.spaceforce.mil/Newsroom/Article-Display/Article/4235257/space-systems-command-awards-28b-contract-to-deliver-the-first-two-satellites-f
[2] https://www.defenceconnect.com.au/joint-capabilities/16369-boeing-tapped-for-us-2-8bn-us-space-force-strategic-satellite-comms-contract
[3] https://www.defensemirror.com/news/39808/Boeing_Secures__2_8B_U_S__Space_Force_Contract_for_Evolved_Strategic_Satellite_Program