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Textron and Kodiak partner for autonomous military vehicle

EditorEmilio Ghigini
Published 05/20/2024, 10:02 PM
TXT
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HUNT VALLEY, Md. – Textron Systems, a subsidiary of Textron Inc . (NYSE: NYSE:TXT), and Kodiak Robotics, Inc., a self-driving technology company, have announced a partnership to develop an autonomous military ground vehicle.

This new vehicle is designed for advanced terrain environments and will not include space for a human driver, marking Kodiak's first venture into military applications without provisions for crew.

The collaboration combines Textron Systems' extensive history in creating military vehicles with Kodiak's expertise in autonomous driving technology. The vehicle will incorporate Kodiak's autonomous system, the Kodiak Driver, into a Textron Systems prototype designed for uncrewed operations. The system is based on technology tested in Kodiak's self-driving trucks, which have amassed nearly 3 million miles in real-world conditions.

Kodiak's DefensePods, a military adaptation of their SensorPods, will be a key feature of the autonomous vehicle. These pods can be swapped out by technicians without specialized training in under ten minutes, suggesting ease of maintenance and adaptability in field conditions.

David Phillips, Senior Vice President of Textron Systems, highlighted the significance of integrating advanced AI-powered autonomy software and modular DefensePods into their military vehicle systems. Don Burnette, founder and CEO of Kodiak, emphasized the potential of their technology to enhance military capabilities in off-road environments.

The companies plan to showcase the driverless operations of the Textron Systems uncrewed military vehicle later in 2024. They also aim to explore future opportunities with the U.S. Department of Defense (DoD) and allied nations' militaries, with the goal of advancing automation in military ground vehicles and enhancing national security by reducing the risk to service members in the field.

Kodiak's expansion into military vehicle applications follows the unveiling of their first autonomous test vehicle for the DoD in December 2023, a modified Ford (NYSE:F) F-150. This move builds on Kodiak's success in autonomous long-haul trucking and demonstrates their commitment to diversifying the applications of their technology.

The collaboration is based on a press release statement and represents a step forward in the integration of autonomous systems into military operations, potentially transforming the landscape of uncrewed ground vehicles for defense purposes.

InvestingPro Insights

As Textron Systems, a subsidiary of Textron Inc. (NYSE: TXT), forges a path into the future of autonomous military vehicles, investors and industry observers are closely monitoring the company's financial health and strategic moves. Textron's partnership with Kodiak Robotics underscores its commitment to innovation in defense technology, a factor that could influence its market performance. According to InvestingPro data, Textron boasts a robust market capitalization of $17.0 billion, reflecting investor confidence in its market position and future prospects.

One of the InvestingPro Tips highlights that management has been aggressively buying back shares, signaling a strong belief in the company's value and long-term strategy. This buyback activity, when paired with Textron's consistent dividend payments for 54 consecutive years, paints a picture of a company with a stable financial foundation and a commitment to returning value to shareholders. Moreover, the company's ability to maintain profitability over the last twelve months suggests operational efficiency and resilience in a competitive sector.

Key financial metrics from InvestingPro further inform our understanding of Textron's market position. The company's P/E ratio stands at 18.87, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at a slightly lower 16.18, indicating a potentially more favorable valuation in the eyes of investors. Additionally, a solid revenue growth of 7.0% over the last twelve months points to Textron's ability to expand its business amidst evolving market conditions. Investors can also note the company's fair value, as assessed by analysts, at $100, closely aligned with InvestingPro's fair value estimate of $99.77.

For those seeking to delve deeper into Textron's financials and strategic outlook, additional InvestingPro Tips are available on the InvestingPro platform. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of information that could inform investment decisions. With 7 more tips available for Textron, investors have a rich resource at their fingertips to evaluate the company's trajectory as it ventures into autonomous military technology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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