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Lockheed's (LMT) Arm Wins Contract for CH-53K Helicopter
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Lockheed Martin Corp.’s (LMT - Free Report) arm, Sikorsky, recently clinched a contract to provide support services for CH-53K helicopters. Valued at $65.7 million, the deal has been awarded by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.
Per the deal, LMT is going to procure six AI gearbox assemblies and six input module gearboxes for CH-53K helicopters. The contract is expected to be complete by March 2027. The work related to this deal will be carried out at Stratford, CT.
Significance of CH-53K Helicopter
CH-53K aircraft is designed to be intelligent, reliable, low maintenance and survivable in the most austere and remote forward operating bases. The helicopter has been designed and built to the exact standards of the U.S. Marine Corps and serves as its critical land and sea-based logistics connector.
With its unrivaled speed, lift capacity and maneuverability, the CH-53K can complete the most demanding mission requirements in less time with fewer sorties than other helicopters in its class.
Such remarkable features have led to an increased demand for this helicopter, thus resulting in a steady inflow of orders for LMT, like the latest one. This tends to boost its revenue generation prospects.
Growth Prospects
Nations across the globe are increasingly focusing on enhancing their national security and investing heftily to keep their armed forces technologically advanced in order to make them capable of responding to evolving threats.
In this context, it is imperative to mention that military helicopters are witnessing significant demand lately owing to their adaptability, which makes them valuable in a wide range of military operations. Modern military helicopters are equipped with advanced sensors and communication system, which provide military missions an added advantage.
Per a report from the Mordor Intelligence firm, the military rotorcraft market is likely to witness a CAGR of more than 4% during the 2023-2028 period. This should contribute to LMT’s growth prospects as the company enjoys a dominant position in the military rotorcraft market with its portfolio containing programs like Black Hawk, Seahawk and CH-53K King Stallion heavy-lift helicopters.
Other defense companies which may enjoy the perks of the expanding military rotorcraft market are as follows:
Boeing (BA - Free Report) : The company’s military rotorcraft is renowned worldwide for its leading-edge, ready and relevant solutions, which deliver proven capabilities. Boeing’s product portfolio includes combat helicopter and rotorcraft like CH-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.
Boeing has a long-term earnings growth rate of 4%. Its investors have gained 43.7% in the past year.
Airbus Group (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Its product portfolio includes the H135 combat helicopter, the H145M helicopter, AS565 MBe, H160M, H175M, H215M, H225M and a few more.
Airbus’ long-term earnings growth rate is pegged at 12.4%. Shares of EADSY have returned 48.5% value to its investors in the past year.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of helicopters to the U.S. government. In association with Boeing, this unit is the only supplier of military tiltrotor aircraft. Some of TXT’s key programs include the AH-1Z helicopter, V-22 tiltrotor, V-247, etc.
Textron boasts a long-term earnings growth rate of 11.7%. TXT stock has appreciated 18.9% in the past year.
Price Movement
In the past year, shares of Lockheed Martin have risen 1.8% against the industry’s 7.3% fall.
Image: Bigstock
Lockheed's (LMT) Arm Wins Contract for CH-53K Helicopter
Lockheed Martin Corp.’s (LMT - Free Report) arm, Sikorsky, recently clinched a contract to provide support services for CH-53K helicopters. Valued at $65.7 million, the deal has been awarded by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.
Per the deal, LMT is going to procure six AI gearbox assemblies and six input module gearboxes for CH-53K helicopters. The contract is expected to be complete by March 2027. The work related to this deal will be carried out at Stratford, CT.
Significance of CH-53K Helicopter
CH-53K aircraft is designed to be intelligent, reliable, low maintenance and survivable in the most austere and remote forward operating bases. The helicopter has been designed and built to the exact standards of the U.S. Marine Corps and serves as its critical land and sea-based logistics connector.
With its unrivaled speed, lift capacity and maneuverability, the CH-53K can complete the most demanding mission requirements in less time with fewer sorties than other helicopters in its class.
Such remarkable features have led to an increased demand for this helicopter, thus resulting in a steady inflow of orders for LMT, like the latest one. This tends to boost its revenue generation prospects.
Growth Prospects
Nations across the globe are increasingly focusing on enhancing their national security and investing heftily to keep their armed forces technologically advanced in order to make them capable of responding to evolving threats.
In this context, it is imperative to mention that military helicopters are witnessing significant demand lately owing to their adaptability, which makes them valuable in a wide range of military operations. Modern military helicopters are equipped with advanced sensors and communication system, which provide military missions an added advantage.
Per a report from the Mordor Intelligence firm, the military rotorcraft market is likely to witness a CAGR of more than 4% during the 2023-2028 period. This should contribute to LMT’s growth prospects as the company enjoys a dominant position in the military rotorcraft market with its portfolio containing programs like Black Hawk, Seahawk and CH-53K King Stallion heavy-lift helicopters.
Other defense companies which may enjoy the perks of the expanding military rotorcraft market are as follows:
Boeing (BA - Free Report) : The company’s military rotorcraft is renowned worldwide for its leading-edge, ready and relevant solutions, which deliver proven capabilities. Boeing’s product portfolio includes combat helicopter and rotorcraft like CH-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.
Boeing has a long-term earnings growth rate of 4%. Its investors have gained 43.7% in the past year.
Airbus Group (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Its product portfolio includes the H135 combat helicopter, the H145M helicopter, AS565 MBe, H160M, H175M, H215M, H225M and a few more.
Airbus’ long-term earnings growth rate is pegged at 12.4%. Shares of EADSY have returned 48.5% value to its investors in the past year.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of helicopters to the U.S. government. In association with Boeing, this unit is the only supplier of military tiltrotor aircraft. Some of TXT’s key programs include the AH-1Z helicopter, V-22 tiltrotor, V-247, etc.
Textron boasts a long-term earnings growth rate of 11.7%. TXT stock has appreciated 18.9% in the past year.
Price Movement
In the past year, shares of Lockheed Martin have risen 1.8% against the industry’s 7.3% fall.
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.