Latest news with #spaceTechnology
Yahoo
09-07-2025
- Business
- Yahoo
Boeing Delivers Next-Generation Satellite: What Awaits Investors?
The Boeing Company BA recently delivered the 9th and 10th O3b mPOWER satellites to SES, marking yet another step in bolstering its position in the expanding global space-based connectivity industry. These satellites, equipped with Boeing's fully software-defined payloads, dynamically allocate power to meet real-time user demands, offering high-speed and reliable service. As Boeing continues to work with SES on launch preparations for these satellites, scheduled this summer, and is also currently producing three additional satellites for SES' constellation, investors interested in space technology stocks might rush to add this jet giant to their portfolio. However, before making any move, let us dive deeper into Boeing's recent performance at the bourses, what growth opportunities it can offer and risks (if any) of investing in it. This will help an investor to make an informed decision. Shares of Boeing surged a solid 22% in the year-to-date period and outperformed the S&P 500's return of 6.3%. The stock, however, underperformed the Zacks aerospace-defense industry's growth of 22.2% and the broader Zacks Aerospace sector's growth of 23.1%, by a whisker, in the said time frame. Image Source: Zacks Investment Research Shares of other aerospace giants like Embraer ERJ and Airbus SE EADSY have also risen considerably year to date and outperformed Boeing. Notably, shares of Embraer and Airbus have gained 66.4% and 30.2%, respectively. Boeing stands to benefit significantly from rising global air travel and an aging aircraft fleet, both of which are fueling strong demand for new jets and aftermarket services. This trend directly supports growth in Boeing Global Services (BGS) business segment, which holds a robust $22.04 billion backlog as of March 31, 2025. To this end, Boeing forecasts a $4.4 trillion market opportunity in commercial aviation services between 2024 and 2043, positioning the BGS unit for sustained, long-term expansion. Industry-wide, peers like Embraer and Airbus are also benefiting from this growing aftermarket demand trend. In defense, Boeing is well-placed to capitalize on rising U.S. military spending and key program participation. To this end, the proposed 13% increase in U.S. defense spending for FY2026 by President Trump, raising the budget to $1.01 trillion, further strengthens its outlook. Reflecting this positive momentum, the Zacks Consensus Estimate pegs Boeing's long-term (three-to-five-years) earnings growth rate at 18.1%, outpacing the industry average of 11.8%. Now, let's take a sneak peek at the company's near-term estimates to understand whether the figures mirror similar growth prospects. Boeing's estimate for second-quarter 2025 sales suggests an improvement of 17.4% from the year-ago quarter's reported figure, while that for full-year 2025 sales indicates a rally of 25.6%. A similar improvement trend can be observed from its 2026 sales estimates. Its quarterly as well as yearly earnings estimates also reflect similar robust performance on a year-over-year basis. However, the majority of Boeing's near-term earnings estimates, except for 2025, reflect a downward revision over the past 60 days. This indicates that investors are losing confidence in the stock's earnings-generating capabilities. Image Source: Zacks Investment Research Image Source: Zacks Investment Research While Boeing presents strong growth potential, it also faces key challenges that investors should weigh carefully. In particular, its 737 product line has remained a major challenge that has persistently affected Boeing's commercial airplane business in the recent past. While delivery and subsequent revenue growth have been achieved involving the 737 model in recent quarters, the significant inventory this product line has built up over the course of time has been putting cost pressure on the company, and if it fails to deliver them timely, its commercial unit will suffer once again. Moreover, despite a recovery in air travel driving demand for commercial aircraft, persistent global supply-chain disruptions, especially shortages of critical parts, continue to hinder and are expected to affect the aviation industry in 2025. This remains a major risk for jet manufacturers like Boeing, Airbus and Embraer. The image below shows that BA stock's trailing 12-month return on invested capital (ROIC) not only lags the peer group's average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses. Image Source: Zacks Investment Research In terms of valuation, Boeing's forward 12-month price-to-sales (P/S) is 1.80X, a discount to its peer group's average of 1.83X. This suggests that investors will be paying a lower price than the company's expected sales growth compared to that of its peer group. The stock's forward 12-month P/S, however, seems stretched when compared to its five-year median value, 1.41. Image Source: Zacks Investment Research To conclude, investors interested in Boeing should wait for a better entry point, considering the stock's poor ROIC. Additionally, downward revisions in most of its short-term earnings estimates suggest caution is warranted. However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering robust backlog, solid defense positioning, positive share price performance and expected sales growth — combined with its discounted valuation relative to peers. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
CTV News
18-06-2025
- Automotive
- CTV News
Honda conducts surprise reusable rocket test, aims spaceflight by 2029
Signage displayed at the Honda Motor Co. headquarters in Tokyo, Japan, Photographer: Kiyoshi Ota/Bloomberg TOKYO — Honda succeeded in a launch and landing test of its prototype reusable rocket on Tuesday, the Japanese company said in a surprise announcement, marking a milestone towards its 2029 goal of achieving a suborbital spaceflight. Honda R&D, the research arm of Japan's second-biggest carmaker, successfully landed its 6.3-meter (20.6-foot) experimental reusable launch vehicle after reaching an altitude of 271 meters (889 feet) at its test facility in northern Japan's space town Taiki, according to the company. While 'no decisions have been made regarding commercialization of these rocket technologies, Honda will continue making progress in the fundamental research with a technology development goal of realizing technological capability to enable a suborbital launch by 2029,' it said in a statement. Honda in 2021 said it was studying space technologies such as reusable rockets, but it has not previously announced the details of the launch test. A suborbital launch may touch the verge of outer space but does not enter orbit. Studying launch vehicles 'has the potential to contribute more to people's daily lives by launching satellites with its own rockets, that could lead to various services that are also compatible with other Honda business,' the company added. Reusable launch vehicles have been the driver of emerging commercial space missions over the past decade, led by SpaceX's Falcon 9, while its U.S. rivals including Blue Origin and companies in China and Europe also have reusable rocket plans. Tokyo-based startup Innovative Space Carrier last month said it will test-launch a prototype reusable rocket in the United States in December using an American engine. Honda's rival Toyota, the world's biggest automaker by sales, earlier this year announced an investment by its research arm in Taiki-based rocket maker Interstellar Technologies to support mass production of launch vehicles. Japan's government has established a multibillion-dollar space venture fund to subsidize private rockets, satellites and other missions, targeting to double its space industry's size to 8 trillion yen (US$55.20 billion) by the early 2030s. (Reporting by Kantaro Komiya; editing by David Evans)
CBS News
18-06-2025
- Automotive
- CBS News
Honda hails successful test of reusable rocket as it looks to get into the space business
Tokyo — Japan's second-biggest carmaker, Honda, has successfully tested an experimental reusable rocket, the company says, as it seeks to expand into the space sector. Honda, which hopes to develop the tech prowess for a suborbital launch by 2029, conducted a test flight of its rocket on the northern Japanese island of Hokkaido. "The test was completed successfully, the first time Honda landed a rocket after reaching an altitude of nearly 300 meters (about 984 feet)," the company said in a statement on Tuesday. Honda's experimental reusable rocket is seen during what the company said was its successful test launch from the northern Japanese island of Hokkaido on on June 17, 2025. Honda R&D Co. Ltd. The prototype device, around six meters (20 feet) tall, landed only 37 centimeters (a little more than a foot) from its designated landing spot after the one-minute flight. Demand for satellite launch rockets is expected to increase in coming years as expectations grow for "a data system in outer space," the Honda statement said. "Honda has chosen to take on the technological challenge of developing reusable rockets by utilizing Honda technologies amassed in the development of various products and automated driving systems," it said. In the future, the rockets could be used to set up satellite-based communication tools and monitor environmental conditions such as global warming, Honda added. Elon Musk's SpaceX is known for its use of reusable rockets -- a fast-growing field with various companies worldwide racing to develop their own models. Japan's space agency, JAXA, is also on a mission to become a major player for satellite launches, including with its H3 rocket, which isn't reusable. Meanwhile, Japanese startups are vying to enter the busy field, including Space One, which in December suffered its second failed rocket launch.
Malay Mail
18-06-2025
- Automotive
- Malay Mail
Honda enters space race as reusable rocket lands within centimetres of target in milestone test, eyes suborbital launch by 2029
TOKYO, June 18 — Japan's second-biggest carmaker Honda has successfully tested an experimental reusable rocket, the company said, as it seeks to expand into the space sector. Honda, which hopes to develop the tech prowess for a suborbital launch by 2029, conducted a test flight of its rocket on the northern Japanese island of Hokkaido. 'The test was completed successfully, the first time Honda landed a rocket after reaching an altitude of nearly 300 metres,' the company said in a statement yesterday. The prototype device, around six metres tall, landed only 37 centimetres from its designated landing spot after the one-minute flight. Demand for satellite launch rockets is expected to increase in the coming years as expectations grow for 'a data system in outer space', the Honda statement said. 'Honda has chosen to take on the technological challenge of developing reusable rockets by utilising Honda technologies amassed in the development of various products and automated driving systems,' it said. In future, the rockets could be used to set up satellite-based communication tools and to monitor environmental conditions such as global warming, Honda added. Elon Musk's SpaceX is known for its use of reusable rockets — a fast-growing field with various companies worldwide racing to develop their own models. Japan's space agency JAXA is also on a mission to become a major player for satellite launches, including with its H3 rocket, which is not reusable. Meanwhile Japanese startups are vying to enter the busy field, including Space One, which in December suffered its second failed rocket launch. — AFP
Yahoo
18-06-2025
- Automotive
- Yahoo
Honda conducts surprise reusable rocket test, aims spaceflight by 2029
By Kantaro Komiya TOKYO (Reuters) -Honda succeeded in a launch and landing test of its prototype reusable rocket on Tuesday, the Japanese company said in a surprise announcement, marking a milestone towards its 2029 goal of achieving a suborbital spaceflight. Honda R&D, the research arm of Japan's second-biggest carmaker, successfully landed its 6.3-metre (20.6-foot) experimental reusable launch vehicle after reaching an altitude of 271 metres (889 feet) at its test facility in northern Japan's space town Taiki, according to the company. While "no decisions have been made regarding commercialization of these rocket technologies, Honda will continue making progress in the fundamental research with a technology development goal of realizing technological capability to enable a suborbital launch by 2029," it said in a statement. Honda in 2021 said it was studying space technologies such as reusable rockets, but it has not previously announced the details of the launch test. A suborbital launch may touch the verge of outer space but does not enter orbit. Studying launch vehicles "has the potential to contribute more to people's daily lives by launching satellites with its own rockets, that could lead to various services that are also compatible with other Honda business," the company added. Reusable launch vehicles have been the driver of emerging commercial space missions over the past decade, led by SpaceX's Falcon 9, while its U.S. rivals including Blue Origin and companies in China and Europe also have reusable rocket plans. Tokyo-based startup Innovative Space Carrier last month said it will test-launch a prototype reusable rocket in the United States in December using an American engine. Honda's rival Toyota, the world's biggest automaker by sales, earlier this year announced an investment by its research arm in Taiki-based rocket maker Interstellar Technologies to support mass production of launch vehicles. Japan's government has established a multibillion-dollar space venture fund to subsidise private rockets, satellites and other missions, targeting to double its space industry's size to 8 trillion yen ($55.20 billion) by the early 2030s. ($1 = 144.9200 yen)
