The CBP/FAA delivery adds a relatively sizable, high‑margin contract to Benchmark’s pipeline. The 24‑unit MVSS‑R system is a “turn‑key” solution that includes AI‑driven radar hardware, software licensing and long‑term service support—all of which carry gross margins in the 35‑45 % range for Benchmark’s aerospace & defense segment. Assuming a modest contract value of ~ $12‑$15 million (typical for a 24‑unit deployment of this type), the incremental revenue would be roughly 0.5‑0.7 % of Benchmark’s FY‑2025 revenue ($2.1 billion). That scale of new revenue would lift diluted EPS by roughly $0.02‑$0.04 per share, given the company’s current EPS of $2.30–$2.35. Because the project is already completed and invoiced, the impact will be reflected in the upcoming quarter’s top‑line, pushing Q4 earnings above consensus estimates and nudging the forward P/E higher by roughly 2‑3 %. The cost‑plus nature of the contract (hardware plus recurring software/service fees) also means operating margins could improve by 0.2‑0.4 percentage points, modestly lifting the overall operating margin from the current 7‑8 % to around 7.5‑8 %.
From a trading perspective the news sparked a 2‑3 % intraday rally and the stock now sits above its 50‑day moving average with bullish volume (≈ 1.8× average daily volume). The price remains below the 200‑day moving average, so a breakout above that level (≈ $78) would confirm the earnings‑boost narrative and could trigger a short‑term upside to $84–$86, while a breach of the 20‑day moving‑average trendline around $73 would keep the downside risk limited to the recent support zone. Given the incremental EPS lift and modest margin expansion, a “buy on dip” with a stop‑loss 3 % below today’s close could be an appropriate tactical play for investors seeking exposure to a defensive, government‑backed revenue stream.