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Lockheed Martin (LMT) Wins $447M Deal to Build MH-60R Aircraft

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Lockheed Martin Corp. (LMT - Free Report) recently secured a modification contract for the production and delivery of 12 MH-60R aircraft, which will be supplied to the government of the Republic of Korea.  The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.

Valued at $447.2 million, the contract is scheduled to be completed by December 2024. Majority of the work related to this deal will be executed in Owego, NY.

A Brief Note on MH-60R Aircraft

The MH-60R Seahawk helicopter, also known as the Seahawk Multi-mission Naval Helicopter, is the world’s most advanced maritime helicopter designed to operate from frigates, destroyers, cruisers and aircraft carriers. The MH-60R is equipped for a range of missions, including anti-submarine warfare, anti-surface warfare, search-and-rescue, naval gunfire support, surveillance, logistics support, personnel transfer and vertical replenishment. Currently, it is operational and deployed with the U.S. Navy as the primary anti-submarine warfare and anti-surface weapon system for Open Ocean and littoral zones.

Our View

In recent times, the importance of military helicopters in the U.S. aerospace-defense market has increased due to advancements and integration of new tactical and logistical features along with the inclusion of improved radar systems and the availability of advanced system engineering services. Such crucial developments have been boosting the demand for combat helicopters and Lockheed Martin, being a prominent helicopter manufacturer, has been reaping the benefits.

Looking ahead, the global attack helicopter market is estimated to witness CAGR of more than 4% during the 2020-2025 period, with North America constituting the largest share of this market, per the latest forecast made by market research firm, Mordor Intelligence. This indicates solid opportunities for Lockheed Martin.

A few other prominent players in the aforementioned market like Boeing (BA - Free Report) and Textron (TXT - Free Report) are also expected to benefit.

Price Movement

Lockheed Martin’s stock has gained 4.8% in the past year compared with the industry’s rally of 24.6%.

Zacks Rank & Stock to Consider

Lockheed Martin currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the same sector is AAR Corp. (AIR - Free Report) , sporting a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

AAR Corp. pulled off an average earnings surprise of 129.07% in the trailing four quarters. The Zacks Consensus Estimate for fiscal 2021 earnings indicates an annual improvement of 14%.

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In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The Boeing Company (BA) - free report >>

AAR Corp. (AIR) - free report >>

Lockheed Martin Corporation (LMT) - free report >>

Textron Inc. (TXT) - free report >>