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Lockheed (LMT) Wins $22.3M Deal to Manufacture Missile System
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Lockheed Martin Corp. (LMT - Free Report) recently clinched a contract to manufacture and deliver an air-to-ground missile system. Valued at $22.3 million, the deal has been awarded by the Army Contracting Command, Redstone Arsenal, AL.
The contract is expected to be complete by Sep 30, 2026. The work related to this deal will be carried out in Orlando, FL.
What’s Favoring Lockheed?
Rising geopolitical tensions have led nations to bolster their missile capabilities to ensure strategic interests and effectively respond to potential threats. On a positive note, technological advancements in missiles have made them more versatile and efficient for nuclear warheads, leading nations to increasingly spend on modernizing their missile arsenals.
Such an increased expenditure tends to be advantageous for LMT as its Missiles and Fire Control business unit excels in manufacturing and supporting advanced missile systems for military customers that include the U.S. Army, Navy, Air Force, Marine Corps and a handful of U.S. allies.
Lockheed’s product portfolio includes notable missiles like GMLRS Munitions, Enhanced Laser Guided Training Round, JASSM and a few more, which have a significant presence in the military weaponry space and continue to witness solid demand. This leads to increased order inflows for LMT to manufacture such missiles for the military, like the latest one. This tends to boost its revenue generation prospects.
Growth Prospects
Per a report from the Mordor Intelligence firm, the missile and missile defense systems market is likely to witness a CAGR of more than 4.8% during the 2023-2028 period. This unfolds immense opportunities for LMT as the company is a pioneer of high-performance missiles and missile defense successfully delivering these capabilities to military forces globally.
Other prominent players in the defense landscape poised to gain from the growing missile market are as follows:
RTX Corporation (RTX - Free Report) : Raytheon offers a variety of combat-proven missile defense systems, including the Patriot missile, Standard Missile-6 (SM-6), AIM-9X missiles, Standard Missile-3 (SM-3), the Advanced Medium-Range Air-to-Air Missile, the Evolved Seasparrow Missile, the Tomahawk cruise missile and a few more.
In September 2023, RTX secured a modification contract to boost capacity for the production of AIM-9X missiles, the most advanced infrared-tracking, short-range, air-to-air and surface-to-air missile in the world.
Northrop Grumman Corporation (NOC - Free Report) : Northrop manufactures a variety of air, sea and land-based missile systems’ propulsion control systems that support the U.S. Missile Defense Agency. It also produces airborne missile warning systems and medium-class solid rocket motors for the U.S. Navy's Trident II Fleet Ballistic Missile program.
In September 2023, NOC announced that the U.S. Air Force has awarded the company an approximately $705 million contract to deliver the Stand-in Attack Weapon, an air-to-ground weapon that accelerates the pivot to a new generation of air power.
Boeing (BA - Free Report) : Boeing’s missile defense capabilities provide defensive and strategic systems that protect the homeland and deployed forces. The company’s systems within the Integrated Air & Missile Defense portfolio include Arrow 3, which offers regional missile defense capabilities for an effective response to short and medium-range ballistic missiles.
Some other missiles in Boeing’s product portfolio include the supersonic Harpoon missiles, Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile. In September 2023, BA clinched a contract involving its Harpoon missile, which is the world’s most successful anti-ship missile and is in service with the armed forces of more than 30 countries.
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Lockheed (LMT) Wins $22.3M Deal to Manufacture Missile System
Lockheed Martin Corp. (LMT - Free Report) recently clinched a contract to manufacture and deliver an air-to-ground missile system. Valued at $22.3 million, the deal has been awarded by the Army Contracting Command, Redstone Arsenal, AL.
The contract is expected to be complete by Sep 30, 2026. The work related to this deal will be carried out in Orlando, FL.
What’s Favoring Lockheed?
Rising geopolitical tensions have led nations to bolster their missile capabilities to ensure strategic interests and effectively respond to potential threats. On a positive note, technological advancements in missiles have made them more versatile and efficient for nuclear warheads, leading nations to increasingly spend on modernizing their missile arsenals.
Such an increased expenditure tends to be advantageous for LMT as its Missiles and Fire Control business unit excels in manufacturing and supporting advanced missile systems for military customers that include the U.S. Army, Navy, Air Force, Marine Corps and a handful of U.S. allies.
Lockheed’s product portfolio includes notable missiles like GMLRS Munitions, Enhanced Laser Guided Training Round, JASSM and a few more, which have a significant presence in the military weaponry space and continue to witness solid demand. This leads to increased order inflows for LMT to manufacture such missiles for the military, like the latest one. This tends to boost its revenue generation prospects.
Growth Prospects
Per a report from the Mordor Intelligence firm, the missile and missile defense systems market is likely to witness a CAGR of more than 4.8% during the 2023-2028 period. This unfolds immense opportunities for LMT as the company is a pioneer of high-performance missiles and missile defense successfully delivering these capabilities to military forces globally.
Other prominent players in the defense landscape poised to gain from the growing missile market are as follows:
RTX Corporation (RTX - Free Report) : Raytheon offers a variety of combat-proven missile defense systems, including the Patriot missile, Standard Missile-6 (SM-6), AIM-9X missiles, Standard Missile-3 (SM-3), the Advanced Medium-Range Air-to-Air Missile, the Evolved Seasparrow Missile, the Tomahawk cruise missile and a few more.
In September 2023, RTX secured a modification contract to boost capacity for the production of AIM-9X missiles, the most advanced infrared-tracking, short-range, air-to-air and surface-to-air missile in the world.
Northrop Grumman Corporation (NOC - Free Report) : Northrop manufactures a variety of air, sea and land-based missile systems’ propulsion control systems that support the U.S. Missile Defense Agency. It also produces airborne missile warning systems and medium-class solid rocket motors for the U.S. Navy's Trident II Fleet Ballistic Missile program.
In September 2023, NOC announced that the U.S. Air Force has awarded the company an approximately $705 million contract to deliver the Stand-in Attack Weapon, an air-to-ground weapon that accelerates the pivot to a new generation of air power.
Boeing (BA - Free Report) : Boeing’s missile defense capabilities provide defensive and strategic systems that protect the homeland and deployed forces. The company’s systems within the Integrated Air & Missile Defense portfolio include Arrow 3, which offers regional missile defense capabilities for an effective response to short and medium-range ballistic missiles.
Some other missiles in Boeing’s product portfolio include the supersonic Harpoon missiles, Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile. In September 2023, BA clinched a contract involving its Harpoon missile, which is the world’s most successful anti-ship missile and is in service with the armed forces of more than 30 countries.