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Lockheed Martin (LMT) Secures $21M Deal From U.S. Air Force
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Lockheed Martin Corp. (LMT - Free Report) has won a modification contract for the C-130J center wing box replacement program. This contract has been awarded by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Contract Details
Per the $21.3 million modification, Lockheed Martin will support the purchase of an additional quantity of five each C-130J center wing boxes, five each component kits and a project management review.
With this modification, the total cumulative face value of the contract reaches $72.7 million.
Work related to the deal will be carried out in Marietta and Atlanta, GA. The contract will use fiscal 2018 aircraft procurement funds to complete the deal by Sep 4, 2021.
A Brief Note on C-130J
C-130J Super Hercules is the latest model in Lockheed Martin’s Hercules family. It is a four-engine turboprop military transport aircraft. The C-130J's crew includes only two pilots and one loadmaster because no navigator or flight engineer is required on the aircraft. Among its missions, the C-130J counts capabilities as diverse as special ops, aerial refueling, close air support, search and rescue, and personal recovery.
The J-model is almost similar to the classic Hercules in terms of general appearance. However, it uses updated technology like the new Rolls-Royce AE 2100 D3 turboprops from Rolls-Royce Holdings plc that comes with the Dowty R391 composite scimitar propellers, digital avionics and reduced crew requirements. These improvements have boosted its performance over C-130E/H predecessors. In particular, this latest model comes with 40% greater range, 21% higher speed and 41% reduced take-off distance.
Our View
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs. Its Aeronautics business division is engaged in the production and upgradation of advanced military aircraft including combat and air mobility aircraft, unmanned air vehicles and related technologies. Notably, C-130J is one of the major Aeronautics programs of the company as well as of the U.S. Air Force.
In 2016, Lockheed Martin delivered 24 C-130J aircraft, five of which were offered to international customers. As of Dec 31, 2016, the company had 88 of these aircraft in its backlog, which is anticipated to increase in the coming days courtesy of the latest won deal.
Moreover, given the recently growing demands from overseas market for this tactical aircraft, (particularly from France and Israel) we can expect the company to secure similar contracts related to C-130J jets in the days ahead.
Interestingly, in its latest quarterly results, the company’s Aeronautics division witnessed revenue growth of 14%, with sales volume from C-130J program being one of the driving factors. Going ahead, given the strong demand for C-130J, more similar deals can be expected in coming days, which in turn will make the C-130J program as one of the primary growth drivers for the company.
Furthermore, the fiscal 2018 defense policy has authorized the United States to spend $700 billion on defense. This has enhanced the prospect of increased order flow from Pentagon for major defense contractors like Lockheed Martin, Raytheon Company , Northrop Grumman Corporation (NOC - Free Report) , The Boeing Company (BA - Free Report) and others.
Price Movement
Lockheed Martin’s stock was up about 20% in a year compared with the broader industry’s gain of 36.7%. This underperformance could have been caused by the intense competition that the company faces for its broad portfolio of products and services domestically as well as internationally.
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Lockheed Martin (LMT) Secures $21M Deal From U.S. Air Force
Lockheed Martin Corp. (LMT - Free Report) has won a modification contract for the C-130J center wing box replacement program. This contract has been awarded by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Contract Details
Per the $21.3 million modification, Lockheed Martin will support the purchase of an additional quantity of five each C-130J center wing boxes, five each component kits and a project management review.
With this modification, the total cumulative face value of the contract reaches $72.7 million.
Work related to the deal will be carried out in Marietta and Atlanta, GA. The contract will use fiscal 2018 aircraft procurement funds to complete the deal by Sep 4, 2021.
A Brief Note on C-130J
C-130J Super Hercules is the latest model in Lockheed Martin’s Hercules family. It is a four-engine turboprop military transport aircraft. The C-130J's crew includes only two pilots and one loadmaster because no navigator or flight engineer is required on the aircraft. Among its missions, the C-130J counts capabilities as diverse as special ops, aerial refueling, close air support, search and rescue, and personal recovery.
The J-model is almost similar to the classic Hercules in terms of general appearance. However, it uses updated technology like the new Rolls-Royce AE 2100 D3 turboprops from Rolls-Royce Holdings plc that comes with the Dowty R391 composite scimitar propellers, digital avionics and reduced crew requirements. These improvements have boosted its performance over C-130E/H predecessors. In particular, this latest model comes with 40% greater range, 21% higher speed and 41% reduced take-off distance.
Our View
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs. Its Aeronautics business division is engaged in the production and upgradation of advanced military aircraft including combat and air mobility aircraft, unmanned air vehicles and related technologies. Notably, C-130J is one of the major Aeronautics programs of the company as well as of the U.S. Air Force.
In 2016, Lockheed Martin delivered 24 C-130J aircraft, five of which were offered to international customers. As of Dec 31, 2016, the company had 88 of these aircraft in its backlog, which is anticipated to increase in the coming days courtesy of the latest won deal.
Moreover, given the recently growing demands from overseas market for this tactical aircraft, (particularly from France and Israel) we can expect the company to secure similar contracts related to C-130J jets in the days ahead.
Interestingly, in its latest quarterly results, the company’s Aeronautics division witnessed revenue growth of 14%, with sales volume from C-130J program being one of the driving factors. Going ahead, given the strong demand for C-130J, more similar deals can be expected in coming days, which in turn will make the C-130J program as one of the primary growth drivers for the company.
Furthermore, the fiscal 2018 defense policy has authorized the United States to spend $700 billion on defense. This has enhanced the prospect of increased order flow from Pentagon for major defense contractors like Lockheed Martin, Raytheon Company , Northrop Grumman Corporation (NOC - Free Report) , The Boeing Company (BA - Free Report) and others.
Price Movement
Lockheed Martin’s stock was up about 20% in a year compared with the broader industry’s gain of 36.7%. This underperformance could have been caused by the intense competition that the company faces for its broad portfolio of products and services domestically as well as internationally.
Zacks Rank
Lockheed Martin carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>