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ENDICOTT, N.Y. – BAE Systems (LON:BA), a prominent player in the Aerospace & Defense industry with a market capitalization of $102 billion, has been selected to supply 42 electric drive systems for the San Francisco Municipal Transportation Agency's (SFMTA) new fleet of hybrid-electric buses, the company announced today. The stock has recently experienced significant pressure, trading near its 52-week low of $132.79. These Gen3 electric drive systems will be delivered to bus manufacturer New Flyer for integration, aiming to enhance the efficiency and reliability of San Francisco's public transit. According to InvestingPro data, BAE Systems generates annual revenue of $66.5 billion, demonstrating its significant scale in the transportation and defense sectors.
The Gen3 system, a continuation of BAE Systems' technology utilized by SFMTA buses since 2007, represents the latest advancements with improved materials such as silicon carbide to optimize electrical efficiency. The company's vice president and general manager of Power & Propulsion Solutions, Bob Lamanna, stated that the integration of the Gen3 system in hybrid buses will reduce emissions and improve air quality, aligning with San Francisco's goal of transitioning to a zero-emission transit system.
This technology includes a traction motor, energy storage, and power electronics, designed to provide a seamless electric propulsion experience. The system also features enhancements such as engine start-stop and geofencing capabilities, which enable the buses to operate on full electric mode within certain areas, contributing to the city's green initiatives without the immediate need for grid-connected infrastructure.
BAE Systems boasts nearly three decades of experience in developing electric propulsion systems, with over 19,000 systems currently in service globally across various types of vehicles, including hybrid-electric, battery-electric, and hydrogen fuel cell buses. The company's electric propulsion technology is developed and serviced at its facilities in Endicott, New York, and Rochester, UK. For investors seeking deeper insights, InvestingPro offers comprehensive analysis including 12 additional ProTips and detailed financial metrics in its Pro Research Report, available for over 1,400 US stocks.
The implementation of BAE Systems' electric drive technology in San Francisco's new hybrid buses is part of a broader effort to modernize public transportation and reduce the carbon footprint of urban transit. The information for this article is based on a press release statement.
In other recent news, Boeing has been awarded a $133.5 million contract by the U.S. Department of Defense for P-8A training systems for South Korea. This contract involves software development, integration, and installation of various training devices, with the work primarily conducted in St. Louis, Missouri. Boeing is also in discussions with the U.S. Department of Justice to revise a plea agreement related to a criminal fraud case concerning the 737 MAX. The company previously agreed to admit guilt and pay a penalty of up to $487.2 million, following two fatal crashes involving the aircraft. Meanwhile, the National Transportation Safety Board has urged the Federal Aviation Administration to mandate inspections of door latches on Boeing 757 airplanes, following an emergency evacuation incident. In another development, SpaceX and United Launch Alliance are expected to secure significant contracts from the U.S. Space Force for launching sensitive satellites. These contracts highlight the continued reliance on private companies for national security missions. Additionally, Howmet Aerospace has indicated it may suspend shipments due to tariffs introduced by President Trump, invoking a force majeure event to excuse itself from certain contractual obligations.
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