NASA Scraps Boeing's $2 Billion Moon Rocket Contract, Shifts to ULA for Hardware
BA sits 76% above its 52-week low of $128.88.
Summary
NASA is reportedly shifting its strategy for moon-rocket hardware, opting to tap United Launch Alliance (ULA) for critical components, specifically the Centaur V upper portion of ULA's Vulcan rocket. This move directly impacts Boeing, as it effectively cancels the company's roughly $2 billion contract to build a more powerful Space Launch System (SLS) upper stage, which NASA's inspector general had previously estimated would cost nearly $2.8 billion through 2028. While ULA is a joint venture between Boeing and Lockheed Martin, the immediate financial implication is a material contract loss for Boeing. This decision follows NASA's recent overhaul of its Artemis moon program, including a focus on boosting SLS production and flight rate rather than upgrades. Traders should watch for official confirmations from NASA or Boeing and any potential revisions to Boeing's financial outlook.
At the time of this announcement, BA was trading at $227.35 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $178.5B. The 52-week trading range was $128.88 to $254.35. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.