Lockheed Martin Corp. ( LMT Quick Quote LMT - Free Report) recently secured a contract, under which it will provide logistics support for Space Based Infrared Surveillance. The contract was awarded by the Missile Systems Center, Peterson AFB, CO.
Valued at $1 billion, the contract is expected to get completed by Jul 1, 2026. The entire task will be executed in multiple locations across the state of Colorado.
Importance of SBIRS
Space Based Infrared Systems (SBIRS) uses infrared surveillance to provide enhanced missile warning capabilities for the U.S. military and is considered one of the nation’s highest priority space programs.
With evolving time, upgraded versions of SIBRS have been innovated. Notably, SBIRS Geosynchronous Earth Orbit (SBIRS GEO-5) satellite-built by Lockheed recently joined the Space Force's orbiting Overhead Persistent Infrared (OPIR) missile warning constellation equipped with powerful scanning and staring surveillance sensors.
Built in about five years, SBIRS GEO-5 is the first military space satellite built on an LM 2100 Combat Bus, a version of Lockheed Martin's modernized, modular LM 2100 space vehicle with greatly enhanced resiliency. Such innovations surely elevate Lockheed’s position in the missile defense market, with this defense major being the SBIRS prime contractor, while
Northrop Grumman ( NOC Quick Quote NOC - Free Report) is the payload integrator. Missile Defense & Lockheed
Increasing geopolitical tensions across the globe have prompted nations to strengthen their defense systems manifold, especially missile defense systems. Tom McCormick, vice president of Lockheed Martin Space's OPIR Mission Area, stated that more than 1,000 ballistic missile launches occur globally every year.
To save itself from such threats, the United States has been investing on enhancing the nation’s missile defense networks. In this missile defense program, Lockheed Martin, the nation’s largest defense contractor plays a major role. Notably, the company’s portfolio includes a wide range of air, sea and land-based missile systems like Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area Defense (THAAD), Joint Air-to-Surface Standoff Missile (JASSM), Javelin tactical missile, Trident II D5 Fleet Ballistic Missile (FBM) and many more.
While such missiles aid in counter-attacking incoming missile threats to a nation, significant missile warning capabilities like SBIRS form an integral portion of a nation’s defense strategy, helping in prevention of casualties.
Cross-border conflicts between nations along with spurring intra-state disputes have resulted in civil wars like the ones going on in the Middle East. Therefore, the boom in the missile defense market is expected to continue over the next few years. Anticipating this trend, missiles and missile defense systems market is estimated to register a CAGR of over 10% during 2020-2025 period, as predicted by Mordor Intelligence.
This should usher in frequent contract wins, like the latest one, for prominent U.S. missile makers like Lockheed,
Raytheon Technologies ( RTX Quick Quote RTX - Free Report) and Boeing ( BA Quick Quote BA - Free Report) , with North America generating the highest revenues. Price Performance & Zacks Rank
Shares of Lockheed Martin have lost 5.5% in a year against the
industry’s growth of 3.7%. Image Source: Zacks Investment Research
Lockheed currently carries a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022. Click here for the 4 trades >>