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Lockheed Martin (LMT) Wins $164.3M Contract for UH-60M Aircraft
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Lockheed Martin Corp.’s(LMT - Free Report) arm, Sikorsky, recently clinched a contract for UH-60M aircraft. The deal has been awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Valued at $164.3 million, the contract is expected to be complete by June 30, 2027. The work related to this deal will be carried out at Stratford, CT.
Importance of UH-60M Aircraft
The Multi-mission UH-60M is the latest in the Black Hawk helicopter product family which is more capable, more survivable, more maintainable, more powerful and more effective than its predecessors.
The UH-60M boasts design improvements that extend this platform well into the future as the premier combat utility helicopter of choice for the United States as well as 27 other nations. It ensures compatibility with the U.S. Army’s Future Force and allows for future growth while lowering operating and support costs.
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.
Due to its remarkable features, which are well-suited for any military mission, Lockheed Martin continues to witness a steady inflow of orders involving the helicopter. The latest contract win is a testament to that. This, in turn, shall bolster LMT’s revenues from the Sikorsky business unit.
Growth Prospects
Nations have been increasing their defense spending on military equipment and weaponry lately to modernize and upgrade defense systems amid rising geopolitical tensions. In this context, demand for efficient military aircraft is likely to gain momentum as it plays a very important role in military air missions.
Per Mordor Intelligence projections, the global military helicopter market is expected to witness a CAGR of more than 4% over the 2022-2031 period. Such projections further exemplify immense opportunities for Lockheed Martin to capitalize on the expanding market.
Such abounding growth projections will benefit LockheedMartinand other prominent defense majors, namely Textron(TXT - Free Report) , Boeing (BA - Free Report) and Airbus (EADSY - Free Report) , which are involved in helicopter manufacturing and offer associated support.
Textron’s Bell segment supplies advanced military helicopters and provides parts and support services to the U.S. Government and to military customers outside the United States.Bell’s primary U.S. Government programs are for producing and supporting V-22 tiltrotor aircraft, primarily for the U.S. Department of Defense, and H-1 helicopters for the U.S. Marine Corps.
Textron has a long-term earnings growth rate of 11.2%. Its investors have gained 8.2% in the six months.
Boeing s another prominent helicopter manufacturer. Its H-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey helicopters has redefined the limits of technology, capability and sustainability to ensure the production and delivery of reliable, maintainable and mission-ready aircraft.
Boeing’s long-term earnings growth rate is pegged at 4%. Shares of BA have returned 15.7% value to its investors in the past year.
Airbus Group’s military helicopters comprise the H125M, Military Training H135, H145M, AS565 MBe, H160M, H215M, H225M, Tiger and NH90 (TTH and NFH).
Airbus boasts a long-term earnings growth rate of 12.4%. EADSY stock has appreciated 12.2% in the past year.
Price Movement
In the past year, shares of LockheedMartin have increased 6.9% against the industry’s fall of 12.1%.
Image: Shutterstock
Lockheed Martin (LMT) Wins $164.3M Contract for UH-60M Aircraft
Lockheed Martin Corp.’s(LMT - Free Report) arm, Sikorsky, recently clinched a contract for UH-60M aircraft. The deal has been awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Valued at $164.3 million, the contract is expected to be complete by June 30, 2027. The work related to this deal will be carried out at Stratford, CT.
Importance of UH-60M Aircraft
The Multi-mission UH-60M is the latest in the Black Hawk helicopter product family which is more capable, more survivable, more maintainable, more powerful and more effective than its predecessors.
The UH-60M boasts design improvements that extend this platform well into the future as the premier combat utility helicopter of choice for the United States as well as 27 other nations. It ensures compatibility with the U.S. Army’s Future Force and allows for future growth while lowering operating and support costs.
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.
Due to its remarkable features, which are well-suited for any military mission, Lockheed Martin continues to witness a steady inflow of orders involving the helicopter. The latest contract win is a testament to that. This, in turn, shall bolster LMT’s revenues from the Sikorsky business unit.
Growth Prospects
Nations have been increasing their defense spending on military equipment and weaponry lately to modernize and upgrade defense systems amid rising geopolitical tensions. In this context, demand for efficient military aircraft is likely to gain momentum as it plays a very important role in military air missions.
Per Mordor Intelligence projections, the global military helicopter market is expected to witness a CAGR of more than 4% over the 2022-2031 period. Such projections further exemplify immense opportunities for Lockheed Martin to capitalize on the expanding market.
Such abounding growth projections will benefit LockheedMartinand other prominent defense majors, namely Textron(TXT - Free Report) , Boeing (BA - Free Report) and Airbus (EADSY - Free Report) , which are involved in helicopter manufacturing and offer associated support.
Textron’s Bell segment supplies advanced military helicopters and provides parts and support services to the U.S. Government and to military customers outside the United States.Bell’s primary U.S. Government programs are for producing and supporting V-22 tiltrotor aircraft, primarily for the U.S. Department of Defense, and H-1 helicopters for the U.S. Marine Corps.
Textron has a long-term earnings growth rate of 11.2%. Its investors have gained 8.2% in the six months.
Boeing s another prominent helicopter manufacturer. Its H-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey helicopters has redefined the limits of technology, capability and sustainability to ensure the production and delivery of reliable, maintainable and mission-ready aircraft.
Boeing’s long-term earnings growth rate is pegged at 4%. Shares of BA have returned 15.7% value to its investors in the past year.
Airbus Group’s military helicopters comprise the H125M, Military Training H135, H145M, AS565 MBe, H160M, H215M, H225M, Tiger and NH90 (TTH and NFH).
Airbus boasts a long-term earnings growth rate of 12.4%. EADSY stock has appreciated 12.2% in the past year.
Price Movement
In the past year, shares of LockheedMartin have increased 6.9% against the industry’s fall of 12.1%.
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.