We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lockheed (LMT) Wins Navy Deal to Support AEGIS Combat System
Read MoreHide Full Article
Lockheed Martin Corp.’s (LMT - Free Report) business segment, Rotary and Mission Systems, recently clinched a modification contract involving AEGIS system. The contract has been awarded by the Naval Sea Systems Command, Washington, DC.
Details of the Deal
Valued at $48.5 million, the contract is expected to be completed by December 2023. Per the terms of the agreement, Lockheed will provide AEGIS with sustainment engineering, software development, in-service maintenance, integration, and logistics and fielding support.
These support services are meant for AEGIS’ combat system configurations that are already delivered or will be delivered shortly to the Navy fleet. Majority of the work related to this contract will be executed in Moorestown, NJ.
Importance of AEGIS
The Aegis Combat System is the U.S. Navy’s most modern surface combat system and has been designed as a complete set-up, most suitable for military missions. It includes the missile launching element, the computer programs, the radar and the displays that are fully integrated to work together.
Due to the system’s remarkable features that are well-suited for any military mission, Lockheed Martin continues to witness a steady inflow of orders involving the AEGIS combat system. The latest contract win is a testament to the same. Such contract wins should bolster LMT’s revenues from the combat system.
Growth Prospects
The Russia-Ukraine warfare has led many nations to increase their defense spending for strengthening their security. With arsenals and ammunitions forming an integral part of an efficient combat system, defense products have been witnessing a surge in demand lately. In this context, the demand for an efficient security system that can strengthen naval sea warfare capabilities may also increase in the future.
Per Mordor Intelligence projections, the global naval combat system market is expected to witness a CAGR of 2.5% over the 2022-2027 period. Such projections further exemplify Lockheed Martin’s immense opportunities to capitalize on the expanding market with its state-of-the-art combat system. Such abounding growth projections will also benefit prominent defense majors like Raytheon Technologies (RTX - Free Report) , BAE Systems (BAESY - Free Report) and Elbit Systems (ESLT - Free Report) , as these stocks have strong presence in the naval combat space.
Raytheon Technologies’ Missiles & Defense unit provides an integrated range of solutions in naval warfare, ranging from sensors to command and control systems to precision weapons. It serves as the prime mission systems equipment integrator for all electronic and combat systems for the DDG 1000 program, America’s next-generation combat ship.
The company provides the warship with a computing environment, electronic modular enclosures, an integrated undersea warfare set-up, an MK57 vertical launching structure, an advanced gun system and an integrated power set-up. BAE Systems designs and manufactures naval ships, submarines, and state-of-the-art combat systems and equipment. Its INTeACT combat management system provides mission-critical capabilities and a vital defense advantage.
The system also provides warship crew with all the information it needs to track, analyze and respond to threats in combat. It also allows the troop to co-ordinate resources in other operations such as intelligence gathering and humanitarian assistance, both independently as well as part of multinational coalitions.
Elbit Systems has more than three decades of experience in designing and development of high-performance naval combat systems, including shipboard combat management systems. This assures information dominance over potential enemies, supporting a Common Tactical Picture, shortening decision cycles and executing rapid, accurate weapon engagement.
The company’s submarine, ELINT systems, can detect and recognize threats under dense electromagnetic conditions. These systems are currently installed on the Israel Navy Dolphin class submarines and are also used by several other navies worldwide.
Price Movement
Shares of Lockheed have gained 6.7% in the past 12 months against the industry’s decline of 13.2%.
Image: Bigstock
Lockheed (LMT) Wins Navy Deal to Support AEGIS Combat System
Lockheed Martin Corp.’s (LMT - Free Report) business segment, Rotary and Mission Systems, recently clinched a modification contract involving AEGIS system. The contract has been awarded by the Naval Sea Systems Command, Washington, DC.
Details of the Deal
Valued at $48.5 million, the contract is expected to be completed by December 2023. Per the terms of the agreement, Lockheed will provide AEGIS with sustainment engineering, software development, in-service maintenance, integration, and logistics and fielding support.
These support services are meant for AEGIS’ combat system configurations that are already delivered or will be delivered shortly to the Navy fleet.
Majority of the work related to this contract will be executed in Moorestown, NJ.
Importance of AEGIS
The Aegis Combat System is the U.S. Navy’s most modern surface combat system and has been designed as a complete set-up, most suitable for military missions. It includes the missile launching element, the computer programs, the radar and the displays that are fully integrated to work together.
Due to the system’s remarkable features that are well-suited for any military mission, Lockheed Martin continues to witness a steady inflow of orders involving the AEGIS combat system. The latest contract win is a testament to the same. Such contract wins should bolster LMT’s revenues from the combat system.
Growth Prospects
The Russia-Ukraine warfare has led many nations to increase their defense spending for strengthening their security. With arsenals and ammunitions forming an integral part of an efficient combat system, defense products have been witnessing a surge in demand lately. In this context, the demand for an efficient security system that can strengthen naval sea warfare capabilities may also increase in the future.
Per Mordor Intelligence projections, the global naval combat system market is expected to witness a CAGR of 2.5% over the 2022-2027 period. Such projections further exemplify Lockheed Martin’s immense opportunities to capitalize on the expanding market with its state-of-the-art combat system.
Such abounding growth projections will also benefit prominent defense majors like Raytheon Technologies (RTX - Free Report) , BAE Systems (BAESY - Free Report) and Elbit Systems (ESLT - Free Report) , as these stocks have strong presence in the naval combat space.
Raytheon Technologies’ Missiles & Defense unit provides an integrated range of solutions in naval warfare, ranging from sensors to command and control systems to precision weapons. It serves as the prime mission systems equipment integrator for all electronic and combat systems for the DDG 1000 program, America’s next-generation combat ship.
The company provides the warship with a computing environment, electronic modular enclosures, an integrated undersea warfare set-up, an MK57 vertical launching structure, an advanced gun system and an integrated power set-up.
BAE Systems designs and manufactures naval ships, submarines, and state-of-the-art combat systems and equipment. Its INTeACT combat management system provides mission-critical capabilities and a vital defense advantage.
The system also provides warship crew with all the information it needs to track, analyze and respond to threats in combat. It also allows the troop to co-ordinate resources in other operations such as intelligence gathering and humanitarian assistance, both independently as well as part of multinational coalitions.
Elbit Systems has more than three decades of experience in designing and development of high-performance naval combat systems, including shipboard combat management systems. This assures information dominance over potential enemies, supporting a Common Tactical Picture, shortening decision cycles and executing rapid, accurate weapon engagement.
The company’s submarine, ELINT systems, can detect and recognize threats under dense electromagnetic conditions. These systems are currently installed on the Israel Navy Dolphin class submarines and are also used by several other navies worldwide.
Price Movement
Shares of Lockheed have gained 6.7% in the past 12 months against the industry’s decline of 13.2%.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.