• The maritime deal comes amid growing U.S.-Iran tensions over the Strait of Hormuz.
• The Canadian company is poised to benefit from defense deals amid the geopolitical crisis.
• Stock was down marginally in premarket trade on Wednesday. 

BlackBerry (BB) said early Wednesday it signed a pact with German naval defense solutions company TKMS to support Canada’s submarine program and fortify the North American country’s maritime capabilities. 

The once-famous mobile manufacturer, which has become a crucial software supplier to the automotive and robotics industries, said it will deploy the software solutions developed by its QNX unit across TKMS’ platforms.

The financial value of the deal was not disclosed.

The U.S.-listed shares of the company were down 0.5% in premarket trading on Wednesday. However, if BB rises during the day, the stock will be on track for six consecutive sessions of gains.

Timing Matters

The maritime deal comes amid growing geopolitical tensions between the United States and Iran over the blockade at the Strait of Hormuz, a critical trade passage for oil tankers and cargo ships sailing from all parts of the world. 

In March, Canada launched its “Defence Industrial Strategy” at BlackBerry’s headquarters in Ontario, as the top U.S. partner aims to solidify its position as a key software provider to protect its allies and also protect its national interests, which in turn could boost revenue at the company.

"Defence platforms today are increasingly defined by the software that underpins their safety, security, and operational effectiveness," said John Wall, President of QNX. "By combining QNX's proven software with TKMS's naval expertise, we show how trusted, safety‑certified software built in Canada can scale globally and support the evolving needs of allied naval defence programs."

How Did Retail Traders React?

On Stocktwits, retail sentiment turned ‘extremely bullish’ from ‘bullish in the last 24 hours, amid ‘extremely high’ messaging volumes.

One bullish user on the platform calls the BB stock “a steal” at current levels.

BB stock has risen 4.75% so far this year and more than 22% over the past 12 months.

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