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Lockheed (LMT) Wins $379.6 Contract to Supply MH-60R Helicopters
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Lockheed Martin Corp. (LMT - Free Report) recently clinched a contract involving MH-60R helicopters. Valued at $379.6 million, the deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Per the deal, LMT will manufacture and deliver eight MH-60R helicopters for the government of Spain. The contract is expected to be completed by March 2027. The majority of the work related to this deal will be carried out in Owego, NY, and Stratford, CT.
What’s Favoring Lockheed?
Nations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment. In this context, military helicopters that play a critical role in military missions have also witnessed a significant rise in demand.
Such augmented demand tends to benefit LMT as the company boasts an impressive portfolio of military helicopters like MH-60R, Black Hawk, Seahawk and CH-53K King Stallion heavy-lift helicopters and a few more.
The company enjoys strong demand for its fleet of combat-proven helicopters, which continues to attract customers and results in a significant order inflow for the company, like the latest one. This tends to boost Lockheed’s revenue generation prospects.
Growth Prospects
Per a report from the Mordor Intelligence firm, the military rotorcraft market is likely to witness a CAGR of more than 4% during the 2022-2027 period. Such a forecast suggests significant prospects for Lockheed to capitalize on growth in the military helicopter market, given its established position in this segment.
Other defense companies that stand to benefit from 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 helicopters 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 44.5% 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 37.5% value to its investors in the past year.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of combat 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 26.8% in the past year.
Price Movement
In the past year, shares of Lockheed Martin have increased 7% against the industry’s 0.5% fall.
Image: Bigstock
Lockheed (LMT) Wins $379.6 Contract to Supply MH-60R Helicopters
Lockheed Martin Corp. (LMT - Free Report) recently clinched a contract involving MH-60R helicopters. Valued at $379.6 million, the deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Per the deal, LMT will manufacture and deliver eight MH-60R helicopters for the government of Spain. The contract is expected to be completed by March 2027. The majority of the work related to this deal will be carried out in Owego, NY, and Stratford, CT.
What’s Favoring Lockheed?
Nations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment. In this context, military helicopters that play a critical role in military missions have also witnessed a significant rise in demand.
Such augmented demand tends to benefit LMT as the company boasts an impressive portfolio of military helicopters like MH-60R, Black Hawk, Seahawk and CH-53K King Stallion heavy-lift helicopters and a few more.
The company enjoys strong demand for its fleet of combat-proven helicopters, which continues to attract customers and results in a significant order inflow for the company, like the latest one. This tends to boost Lockheed’s revenue generation prospects.
Growth Prospects
Per a report from the Mordor Intelligence firm, the military rotorcraft market is likely to witness a CAGR of more than 4% during the 2022-2027 period. Such a forecast suggests significant prospects for Lockheed to capitalize on growth in the military helicopter market, given its established position in this segment.
Other defense companies that stand to benefit from 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 helicopters 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 44.5% 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 37.5% value to its investors in the past year.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of combat 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 26.8% in the past year.
Price Movement
In the past year, shares of Lockheed Martin have increased 7% against the industry’s 0.5% 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.