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Lockheed (LMT) Wins Deal to Deliver Ground-Based Radar Systems
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Lockheed Martin Corp. (LMT - Free Report) recently clinched a contract for supplying Ground-Based Radar Systems to Kuwait. The Air Force Life Cycle Management Center, Hanscom Air Force Base, MA provided the award.
Valued at $84.5 million, the contract is expected to get completed by Nov 11, 2027. Per the terms of the contract, Lockheed will provide four standalone radar systems, ancillary equipment, spares, training, warranty and contractor logistics support.
The work related to this deal will be carried out in Liverpool, NY.
Lockheed & Radars
With the rapid escalation of geopolitical tensions globally in recent times, developed and developing nations have been boosting their defense arsenal significantly. Radars constitute a vital part of this arsenal.
The demand for military radar systems has expanded manifold in recent times, driven by factors like the rise in the defense spending of emerging economies, an increase in regional tensions and intercountry conflicts that have boosted the threat of missiles and aircraft. These have been benefiting radar manufacturing companies like Lockheed in the form of contract wins, like the latest one.
LMT’s radar systems offer advanced precision targeting, navigation, threat detection and next-generation intelligence, surveillance and reconnaissance (ISR) capabilities. Its product portfolio consists of varied radars like airborne ground surveillance radar systems, AN/APY-9 Radar, sniper advanced targeting pod, Sentinel A4, long-range discrimination radars and many more.
With a variety of radars in its portfolio, Lockheed Martin thus enjoys solid demand in the global military radar market.
Growth Prospects
Per Mordor Intelligence projections, the global military radar market is expected to witness a CAGR of more than 4.5% over the 2022-2031 period. Such projections exemplify immense opportunities for Lockheed Martin to capitalize on the expanding market.
Moreover, such growth prospects will not only benefit Lockheed Martin but also prominent defense majors, namely Northrop Grumman (NOC - Free Report) , Raytheon Technologies (RTX - Free Report) and BAE Systems (BAESY - Free Report) , which are involved in radar manufacturing and offer associated support.
Northrop Grumman has been at the forefront of AESA radar innovations for more than 60 years. AESA radars provide unparalleled battlespace situational awareness and air-to-air and air-to-ground superiority. A few of NOC’s renowned radars are the AN/AAQ-24(V) Directional Infrared Countermeasure system, the AN/APG-77 AESA radar and the AN/APG-81 AESA fire control radar.
Northrop Grumman has a long-term earnings growth rate of 2.9%. The Zacks Consensus Estimate for NOC’s 2022 sales implies a 1.9% improvement over 2021’s reported figure.
Raytheon’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. Radars like AN-SPY 6, AN-TPY-2, APG-79 and APG-82 are some of its combat-proven products that enjoy solid demand in the global military radar market.
Raytheon’s long-term earnings growth rate is pegged at 9.5%. The Zacks Consensus Estimate for RTX’s 2022 sales implies a 4.3% improvement from 2021’s reported figure.
BAE Systems is at the forefront of radar tracking technology, delivering systems that provide precision tracking data to range commanders with superior situational awareness and various target-tracking solutions. It has delivered numerous state-of-the-art land-based fixed, transportable, mobile and shipborne precision Time Space and Position Information tracking radar systems to domestic and international customers.
BAE Systems boasts a long-term earnings growth rate of 13.7%. The Zacks Consensus Estimate for BAESY’s 2022 sales implies a 17% improvement over 2021’s reported figure.
Price Movement
In the past year, shares of Lockheed Martin have rallied 38.3% against the industry’s fall of 6.5%.
Image: Bigstock
Lockheed (LMT) Wins Deal to Deliver Ground-Based Radar Systems
Lockheed Martin Corp. (LMT - Free Report) recently clinched a contract for supplying Ground-Based Radar Systems to Kuwait. The Air Force Life Cycle Management Center, Hanscom Air Force Base, MA provided the award.
Valued at $84.5 million, the contract is expected to get completed by Nov 11, 2027. Per the terms of the contract, Lockheed will provide four standalone radar systems, ancillary equipment, spares, training, warranty and contractor logistics support.
The work related to this deal will be carried out in Liverpool, NY.
Lockheed & Radars
With the rapid escalation of geopolitical tensions globally in recent times, developed and developing nations have been boosting their defense arsenal significantly. Radars constitute a vital part of this arsenal.
The demand for military radar systems has expanded manifold in recent times, driven by factors like the rise in the defense spending of emerging economies, an increase in regional tensions and intercountry conflicts that have boosted the threat of missiles and aircraft. These have been benefiting radar manufacturing companies like Lockheed in the form of contract wins, like the latest one.
LMT’s radar systems offer advanced precision targeting, navigation, threat detection and next-generation intelligence, surveillance and reconnaissance (ISR) capabilities. Its product portfolio consists of varied radars like airborne ground surveillance radar systems, AN/APY-9 Radar, sniper advanced targeting pod, Sentinel A4, long-range discrimination radars and many more.
With a variety of radars in its portfolio, Lockheed Martin thus enjoys solid demand in the global military radar market.
Growth Prospects
Per Mordor Intelligence projections, the global military radar market is expected to witness a CAGR of more than 4.5% over the 2022-2031 period. Such projections exemplify immense opportunities for Lockheed Martin to capitalize on the expanding market.
Moreover, such growth prospects will not only benefit Lockheed Martin but also prominent defense majors, namely Northrop Grumman (NOC - Free Report) , Raytheon Technologies (RTX - Free Report) and BAE Systems (BAESY - Free Report) , which are involved in radar manufacturing and offer associated support.
Northrop Grumman has been at the forefront of AESA radar innovations for more than 60 years. AESA radars provide unparalleled battlespace situational awareness and air-to-air and air-to-ground superiority. A few of NOC’s renowned radars are the AN/AAQ-24(V) Directional Infrared Countermeasure system, the AN/APG-77 AESA radar and the AN/APG-81 AESA fire control radar.
Northrop Grumman has a long-term earnings growth rate of 2.9%. The Zacks Consensus Estimate for NOC’s 2022 sales implies a 1.9% improvement over 2021’s reported figure.
Raytheon’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. Radars like AN-SPY 6, AN-TPY-2, APG-79 and APG-82 are some of its combat-proven products that enjoy solid demand in the global military radar market.
Raytheon’s long-term earnings growth rate is pegged at 9.5%. The Zacks Consensus Estimate for RTX’s 2022 sales implies a 4.3% improvement from 2021’s reported figure.
BAE Systems is at the forefront of radar tracking technology, delivering systems that provide precision tracking data to range commanders with superior situational awareness and various target-tracking solutions. It has delivered numerous state-of-the-art land-based fixed, transportable, mobile and shipborne precision Time Space and Position Information tracking radar systems to domestic and international customers.
BAE Systems boasts a long-term earnings growth rate of 13.7%. The Zacks Consensus Estimate for BAESY’s 2022 sales implies a 17% improvement over 2021’s reported figure.
Price Movement
In the past year, shares of Lockheed Martin have rallied 38.3% against the industry’s fall of 6.5%.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed Martin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.