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Lockheed (LMT) Wins Contract to Aid H-60 Helicopters
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Lockheed Martin Corp.’s (LMT - Free Report) Rotary and Mission Systems unit recently secured a contract involving the H-60 helicopters. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $49.5 million, the contract is projected to be completed by September 2028. Per the terms of the deal, Lockheed will provide technical, management and process support to maintain the software for all H-60 aircraft variants.
The contract will serve the U.S. Navy as well as the governments of Australia, Denmark, Saudi Arabia, South Korea, Greece and Norway.
Work related to this deal will be carried out in Owego, NY.
Importance of H-60 Helicopters
Lockheed’s H-60 fleet of Black Hawk multirole helicopters serves the U.S. military and the armed forces of 34 other countries worldwide as a tough, reliable utility helicopter. The modern variant of this utility aircraft has lately taken on a new mission set as an armed helicopter to provide fire suppression when supporting ground troops as well as armed escort.
With digital avionics, powerful GE engines, high strength airframe structures and composite wide chord rotor blades, today’s BLACK HAWK platform has better survivability and situational awareness, and can fly higher and carry more than its predecessors.
More than 4,000 BLACK HAWK aircraft of all types are in service worldwide today. The U.S. Army is the largest operator with 2,135 H-60 designated aircraft.
Growth Prospects
In recent times, U.S. military helicopters have gained prominence and significant traction due to advancements and integration of new tactical, logistical and other important features. Some of these developments can be attributed to Lockheed paving the way for securing valuable helicopter-related contracts of late. The recent contract win is a bright example of that.
Looking ahead, rising geopolitical and cross border conflicts prevalent across the globe have forced nations to increase their defense spending toward procuring new aircraft and helicopters to enhance their aerial capabilities. Per a report from Mordor Intelligence, the military rotorcraft market is likely to witness a CAGR of more than 4% during the 2023-2028 period.
This should significantly boost Lockheed as the company enjoys a dominant position in the military helicopter market with its portfolio containing programs like e Black Hawk, Seahawk and CH-53K King Stallion heavy-lift helicopters.
Opportunities for Peers
Other defense companies that may enjoy the perks of the expanding military rotorcraft market are as follows:
Boeing (BA - Free Report) : The company’s military rotorcraft is renowned worldwide for its leading-edge, ready and relevant solutions that deliver proven capabilities. Boeing’s product portfolio includes combat helicopter and rotorcraft like CH-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.
Boeing has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2023 sales indicates an improvement of 19.3% from the 2022 reported figure.
Airbus Group (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Its product portfolio includes the H135 combat helicopter, the H145M helicopter, AS565 MBe Panther, H160M, H175M, H215M, H225M and a few more.
Airbus’ long-term earnings growth rate is 12.4%. The consensus estimate for BA’s 2023 sales indicates an improvement of 19.3% from the 2022 reported figure.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of helicopters to the U.S. government. In association with Boeing, this unit is the only supplier of military tiltrotor aircraft. Some of TXT’s key programs include AH-1Z helicopter, V-22 tiltrotor, V-247 and V280 aircraft.
Textron boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for TXT’s 2023 sales indicates an improvement of 7.7% from the 2022 reported figure.
Price Movement
In the past year, shares of Lockheed have risen 2.7% against the industry’s decline of 6.1%.
Image: Bigstock
Lockheed (LMT) Wins Contract to Aid H-60 Helicopters
Lockheed Martin Corp.’s (LMT - Free Report) Rotary and Mission Systems unit recently secured a contract involving the H-60 helicopters. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $49.5 million, the contract is projected to be completed by September 2028. Per the terms of the deal, Lockheed will provide technical, management and process support to maintain the software for all H-60 aircraft variants.
The contract will serve the U.S. Navy as well as the governments of Australia, Denmark, Saudi Arabia, South Korea, Greece and Norway.
Work related to this deal will be carried out in Owego, NY.
Importance of H-60 Helicopters
Lockheed’s H-60 fleet of Black Hawk multirole helicopters serves the U.S. military and the armed forces of 34 other countries worldwide as a tough, reliable utility helicopter. The modern variant of this utility aircraft has lately taken on a new mission set as an armed helicopter to provide fire suppression when supporting ground troops as well as armed escort.
With digital avionics, powerful GE engines, high strength airframe structures and composite wide chord rotor blades, today’s BLACK HAWK platform has better survivability and situational awareness, and can fly higher and carry more than its predecessors.
More than 4,000 BLACK HAWK aircraft of all types are in service worldwide today. The U.S. Army is the largest operator with 2,135 H-60 designated aircraft.
Growth Prospects
In recent times, U.S. military helicopters have gained prominence and significant traction due to advancements and integration of new tactical, logistical and other important features. Some of these developments can be attributed to Lockheed paving the way for securing valuable helicopter-related contracts of late. The recent contract win is a bright example of that.
Looking ahead, rising geopolitical and cross border conflicts prevalent across the globe have forced nations to increase their defense spending toward procuring new aircraft and helicopters to enhance their aerial capabilities. Per a report from Mordor Intelligence, the military rotorcraft market is likely to witness a CAGR of more than 4% during the 2023-2028 period.
This should significantly boost Lockheed as the company enjoys a dominant position in the military helicopter market with its portfolio containing programs like e Black Hawk, Seahawk and CH-53K King Stallion heavy-lift helicopters.
Opportunities for Peers
Other defense companies that may enjoy the perks of the expanding military rotorcraft market are as follows:
Boeing (BA - Free Report) : The company’s military rotorcraft is renowned worldwide for its leading-edge, ready and relevant solutions that deliver proven capabilities. Boeing’s product portfolio includes combat helicopter and rotorcraft like CH-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.
Boeing has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2023 sales indicates an improvement of 19.3% from the 2022 reported figure.
Airbus Group (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Its product portfolio includes the H135 combat helicopter, the H145M helicopter, AS565 MBe Panther, H160M, H175M, H215M, H225M and a few more.
Airbus’ long-term earnings growth rate is 12.4%. The consensus estimate for BA’s 2023 sales indicates an improvement of 19.3% from the 2022 reported figure.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of helicopters to the U.S. government. In association with Boeing, this unit is the only supplier of military tiltrotor aircraft. Some of TXT’s key programs include AH-1Z helicopter, V-22 tiltrotor, V-247 and V280 aircraft.
Textron boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for TXT’s 2023 sales indicates an improvement of 7.7% from the 2022 reported figure.
Price Movement
In the past year, shares of Lockheed have risen 2.7% against the industry’s decline of 6.1%.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.