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Lockheed Martin Wins $64M Deal to Support F-35 Program

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Lockheed Martin Corp. (LMT - Free Report) recently won a contract for supporting the F-35 aircraft program. Awarded by the Naval Air Systems Command, Patuxent River, MD, the deal will cater to the U.S. Air Force, Navy and non-Department of Defense (DoD) customers.

Valued at $63.9 million, the contract is expected to be completed by January 2027. Per the terms, Lockheed will offer non-recurring engineering support in relation to Tactical Navigation System Inertial Electronics Unit/Inertial Measurements Unit, Electronic Warfare/Counter Measures Aperture Electronics Module (EW/CM AEM), Aircraft Exterior Lighting, EW/CM Electronic Warfare Controllers and EW/CM Counter Measure Controller.

Work related to the deal will be performed in Fort Worth, TX.

F-35’s Dominance in Jet Market

Impressively, the F-35 program is supported by an international team of leading aerospace majors, which makes the program reliable and attractive. Notably, Northrop Grumman (NOC - Free Report) rendered its expertise in carrier aircraft and low-observable stealth technology to this program, while Raytheon Technologies’ (RTX - Free Report) Pratt & Whitney offered its world renowned jet engines. BAE Systems’ (BAESY - Free Report) short takeoff and vertical landing experience, and air systems sustainment supports the jet’s combat capabilities.

It is imperative to mention in this context that rising security threat from terrorist activities and adverse geopolitical situations have resulted in increased need for enhancing United States’ defense budget, of which combat aircraft constitutes a major portion. With its advanced stealth capabilities, combined with fighter aircraft speed and agility, as is discussed above, F-35 jet dominates the combat aircraft market.

Growth Prospects

With socio-political insecurity here to stay in the modern world, we expect demand for renowned combat proven jets like F-35 to increase over time.

Over the long run, production of F-35 jets is expected to continue steadily, given the U.S. government's current inventory target of 2,456 aircraft for the Air Force, Marine Corps and Navy. Consequently, we expect Lockheed to witness more order inflows for F-35, which in turn should bolster this defense contractor’s top line.

Price Performance & Zacks Rank

Lockheed Martin’s stock has slipped 0.8% in the past year compared with the industry’s decline of 36.3%.

The company currently hasa Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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