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Lockheed's (LMT) Unit Wins $100M Deal for UH-60M Aircraft

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Lockheed Martin Corp.’s (LMT - Free Report) business unit, Sikorsky Aircraft recently secured a modification contract for supplying 25 UH-60M Black Hawk aircraft to the Saudi Arabian National Guard. The deal is scheduled to be completed by Oct 31, 2024 and will be executed in Stratford, CT.

Valued at $100 million, this contract deal has been awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.

UH-60M Aircraft’s Specifics

The multi-mission UH-60M is the latest in the Black Hawk helicopter family and is more capable, survivable, maintainable, powerful and effective than its predecessors. The UH-60M has additional payload and range, advanced digital avionics, better handling qualities and situational awareness, active vibration control, improved survivability and offers improved performance using high-speed machined parts.

The aircraft is the primary medium lift helicopter for the U.S. Army, performing a wide range of missions that encompass Air Assault, MEDEVAC, CSAR, Command and Control, and VIP transport. The centerpiece of the UH-60M Black hawk helicopter is an advanced digital avionics suite that provides improved situational awareness and interoperability with the Future Combat System.

What Favors Lockheed Martin?

In recent times, military helicopters in the U.S. aerospace-defense market 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 Martin, paving the way for securing valuable helicopter-related contracts in recent times.

Such contracts are indicative of solid revenue growth prospects of the company’s Rotary and Mission Systems (RMS) business segment, which comprises the Sikorsky helicopters. In fourth-quarter 2020, revenues at Lockheed Martin’s RMS unit increased a solid 8% year over year, with its Sikorsky helicopter programs being one of the primary growth contributors.

With the fiscal 2021 defense budget offering investment potential worth $57 billion in Aircraft, we expect Lockheed Martin’s RMS unit to receive consistent order flows from the Pentagon like the latest one. This, in turn, should lead to similar top-line growth for the unit in the coming days.

Helicopter Market Prospect

Looking ahead, the global attack helicopter market is estimated to witness CAGR of more than 4% during the 2020-2025 period, per the latest forecast made by market research firm, Mordor Intelligence. This indicates solid opportunities for renowned combat helicopter manufacturers like Lockheed Martin, Textron (TXT - Free Report) , Airbus (EADSY - Free Report) and Boeing (BA - Free Report) .

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