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Lockheed (LMT) Wins Deal to Support Unmanned Undersea Vehicle
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Lockheed Martin Corp.’s (LMT - Free Report) business segment, Rotary and Mission Systems, recently clinched a modification contract to provide engineering support for Extra Large Unmanned Undersea Vehicle (UUV). The award has been offered by the Naval Sea Systems Command, Washington, D.C.
Valued at $11 million, the contract is expected to be completed by September 2024. Work related to this deal will be performed in Riviera Beach, FL.
What’s Supporting Lockheed?
The company has more than four decades of experience in developing unmanned and robotic systems for sea.
Notably, LMT’s Marlin autonomous underwater vehicle system offers a range of civilian and military customers and a quick and safe way to conduct subsea surveys and inspections. The 10-feet-long submersible is highly maneuverable and can operate in tight spaces, sprint up to four knots and cruise for up to 18 hours. Marlin can perform up to four times faster inspections, delivering higher fidelity information in hours versus days.
Moreover, in 2017, Lockheed was been selected to support the growth of the U.S. Navy’s family of unmanned undersea systems, under a design phase contract valued at $43.2 million for Orca, the U.S. Navy’s Extra Large Unmanned Undersea Vehicle (XLUUV).
The proven expertise of LMT in the UUV space is likely to have led to a steady inflow of contracts for the company, like the latest one. This, in turn, should bolster its revenue generation prospects from the UUV product line.
Growth Prospectus
The recent tiff between Ukraine and Russia has led other nations to strengthen their defense landscape to deter any war-like situation. In this context, it is imperative to mention that UUVs are noted for their ability to carry out dangerous maritime operations, such as mine countermeasure missions and harbor patrol. Therefore, as investments in undersea warfare capabilities have increased manifold in recent times, so has the demand for state-of-the-art UUVs.
Looking ahead, with technological advancement, nations are more rapidly adopting artificial intelligence and machine learning technologies to increase the autonomy of UUVs. As a result, hefty investments in the development and acquisition of autonomous marine systems can be expected in coming days, thereby boosting the UUV market. To this end, the Fortune Business Insights firm projects the global unmanned underwater vehicles market to witness a CAGR of 13.5% during 2023-2030.
Such growth trends should boost Lockheed along with other defense primes like Boeing (BA - Free Report) , General Dynamics (GD - Free Report) and Leidos Holdings (LDOS - Free Report) that have a strong presence in the unmanned underwater vehicle market.
Boeing’s Echo Voyager is a fully autonomous XLUUV class UUV that can be used for a variety of missions, which were previously impossible due to traditional UUV limitations.
Boeing’s long-term earnings growth rate is 4%. BA’s shares appreciated 42.9% in the past year.
General Dynamics’ Bluefin SandShark is a one-person-portable, low-cost autonomous unmanned underwater vehicle designed to leverage today’s miniaturized sensors and emerge as the development platform for the next generation.
General Dynamics boasts a long-term earnings growth rate of 9.2%. GD’s shares rallied 5.8% in the past year.
Leidos is a leading provider of maritime autonomy and sensor integration, with an extensive experience in naval architecture, hydrodynamics, survivability and modularity that assists the company in designing and developing the future generation of unmanned autonomous vessels. Its unmanned autonomous vessels are being designed to support numerous alternate naval missions, in addition to the as-designed anti-submarine warfare mission.
Leidos’ long-term earnings growth rate is 7.9%. LDOS’ shares rose 2.7% in the past year.
Price Movement
Shares of LMT rallied 6.2% in the past year against the industry’s decline of 1.7%.
Image: Bigstock
Lockheed (LMT) Wins Deal to Support Unmanned Undersea Vehicle
Lockheed Martin Corp.’s (LMT - Free Report) business segment, Rotary and Mission Systems, recently clinched a modification contract to provide engineering support for Extra Large Unmanned Undersea Vehicle (UUV). The award has been offered by the Naval Sea Systems Command, Washington, D.C.
Valued at $11 million, the contract is expected to be completed by September 2024. Work related to this deal will be performed in Riviera Beach, FL.
What’s Supporting Lockheed?
The company has more than four decades of experience in developing unmanned and robotic systems for sea.
Notably, LMT’s Marlin autonomous underwater vehicle system offers a range of civilian and military customers and a quick and safe way to conduct subsea surveys and inspections. The 10-feet-long submersible is highly maneuverable and can operate in tight spaces, sprint up to four knots and cruise for up to 18 hours. Marlin can perform up to four times faster inspections, delivering higher fidelity information in hours versus days.
Moreover, in 2017, Lockheed was been selected to support the growth of the U.S. Navy’s family of unmanned undersea systems, under a design phase contract valued at $43.2 million for Orca, the U.S. Navy’s Extra Large Unmanned Undersea Vehicle (XLUUV).
The proven expertise of LMT in the UUV space is likely to have led to a steady inflow of contracts for the company, like the latest one. This, in turn, should bolster its revenue generation prospects from the UUV product line.
Growth Prospectus
The recent tiff between Ukraine and Russia has led other nations to strengthen their defense landscape to deter any war-like situation. In this context, it is imperative to mention that UUVs are noted for their ability to carry out dangerous maritime operations, such as mine countermeasure missions and harbor patrol. Therefore, as investments in undersea warfare capabilities have increased manifold in recent times, so has the demand for state-of-the-art UUVs.
Looking ahead, with technological advancement, nations are more rapidly adopting artificial intelligence and machine learning technologies to increase the autonomy of UUVs. As a result, hefty investments in the development and acquisition of autonomous marine systems can be expected in coming days, thereby boosting the UUV market. To this end, the Fortune Business Insights firm projects the global unmanned underwater vehicles market to witness a CAGR of 13.5% during 2023-2030.
Such growth trends should boost Lockheed along with other defense primes like Boeing (BA - Free Report) , General Dynamics (GD - Free Report) and Leidos Holdings (LDOS - Free Report) that have a strong presence in the unmanned underwater vehicle market.
Boeing’s Echo Voyager is a fully autonomous XLUUV class UUV that can be used for a variety of missions, which were previously impossible due to traditional UUV limitations.
Boeing’s long-term earnings growth rate is 4%. BA’s shares appreciated 42.9% in the past year.
General Dynamics’ Bluefin SandShark is a one-person-portable, low-cost autonomous unmanned underwater vehicle designed to leverage today’s miniaturized sensors and emerge as the development platform for the next generation.
General Dynamics boasts a long-term earnings growth rate of 9.2%. GD’s shares rallied 5.8% in the past year.
Leidos is a leading provider of maritime autonomy and sensor integration, with an extensive experience in naval architecture, hydrodynamics, survivability and modularity that assists the company in designing and developing the future generation of unmanned autonomous vessels. Its unmanned autonomous vessels are being designed to support numerous alternate naval missions, in addition to the as-designed anti-submarine warfare mission.
Leidos’ long-term earnings growth rate is 7.9%. LDOS’ shares rose 2.7% in the past year.
Price Movement
Shares of LMT rallied 6.2% in the past year against the industry’s decline of 1.7%.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.