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Lockheed Martin Corp. (LMT - Free Report) , through its Mission Systems and Training unit, won a firm-fixed-price contract from the Department of Defense (DoD) for six B-2 line replaceable units, data, material lay-in, and overhaul management.

The contract has a total value of $53.6 million with the primary three-year period expected to wind up by Jul 2016. Lockheed Martin also has an additional two-year option period till 2018 to perform the work.

Lockheed has received numerous contracts in the last few months thanks to its diversified operations focusing on ISR, unmanned systems, force protection, cyber security, and missile defense.

Bethesda, Md.-based Lockheed Martin is a global security and aerospace company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

Earlier this month, a Lockheed Martin business wing, Mission Systems and Training, won a $295 million DoD contract for work on the Aegis missile defense. This is a sole-source, cost-plus-incentive-fee/cost-plus-award-fee/cost-plus-technical-schedule incentive fee contract modification, under which Lockheed Martin will provide system engineering and program management services. This is mainly intended for the development of Aegis Ballistic Missile Defense Baseline, which would support the 5.1 variant through the Critical Design Review and Increment-2 through the Preliminary Design Review. The company’s work on the contract will continue through Mar 30, 2015.    

Lockheed Martin’s Mission Systems and Training division also won a $6.9 million cost-plus-incentive-fee, cost-plus-fixed-fee contract to perform additional Aegis development work for the U.S. Navy. The deal though minor has an option, which can boost the total value to $304.4 million, if exercised.

Despite the lurking fears of sequestration and its adverse impact on U.S. defense budgets, we expect Lockheed Martin to register a stable performance in the long run due to a leveraged presence in the Army, Air Force, Navy and IT programs.

Lockheed Martin is a Zacks Rank #3 (Hold) stock. Other stocks from the sector that are presently performing well include Embraer SA (ERJ - Free Report) , The Boeing Company (BA - Free Report) and Northrop Grumman Corp. (NOC - Free Report) , all with a Zacks Rank #2 (Buy).

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