The US Army has awarded Northrop Grumman Corporation (NYSE:NOC) a $4.8 billion contract for the Common Infrared Countermeasure (CIRCM) system. The contract, which is scheduled to run through September 2035, expands Northrop's long-term opportunity pipeline, although the full $4.8 billion ceiling does not immediately enter backlog. The CIRCM award strengthens Northrop's position in the defense space. The company has already delivered more than 750 CIRCM shipsets. The system has accumulated over 75,000 operational flight hours on platforms such as AH-64 Apache and CH-47 Chinook. That operating history matters. In the defense sector, established production programs are increasingly valuable.
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