Boeing Company ( BA ) shares are trading higher on Thursday following the announcement of a significant contract award.

The U.S. Army Special Operations Aviation Command (USASOAC) awarded Boeing ( BA ) a $240 million contract on Thursday to remanufacture five MH-47G Block II Chinook helicopters.

Deliveries for the aircraft are scheduled to begin in 2027. This contract underscores Boeing’s continued support for U.S. military operations, particularly for special operations forces with unique mission requirements.

Heather McBryan, vice president of Cargo Programs at Boeing Defense, emphasized the importance of providing the enhanced capabilities of the MH-47G Block II to meet these needs.

This contract follows USASOAC’s 2024 acquisition of four MH-47G Block II helicopters, bringing the Army’s total to 51 under contract. Boeing ( BA ) expects to complete the entire USASOAC Chinook fleet by early 2030.

The MH-47G Block II aircraft is designed for long-term use with its reinforced airframe, advanced avionics, and fuel tanks, positioning it for future upgrades.

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In other news, Boeing ( BA ) is preparing for a criminal fraud trial set for June 23, related to the two fatal 737 MAX crashes.

U.S. District Judge Reed O’Connor rejected a previous plea deal, setting the stage for a major legal battle following the tragic incidents that killed 346 people.

According to Benzinga Pro, BA stock has lost over 5% in the past year. Investors can gain exposure to the stock via iShares U.S. Aerospace & Defense ETF ( ITA ) .

Price Action: BA shares are trading higher by 1.49% to $181.21 at last check Thursday.

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