Lockheed Martin Corp.’s (LMT - Free Report) business unit, Lockheed Martin Missiles and Fire Control, has won a contract from the U.S. Navy for the Long Range Anti-Ship Missile (“LRASM”). LRASM is an anti-ship missile being developed for the U.S. Navy.
The contract is valued at $321.8 million and the contracting activity is Naval Air Systems Command, Patuxent River, MA.
Per the contract, Lockheed will perform research and development to support the integration and test phase of LRASM. This phase includes the completion of detailed designing of all remaining hardware and software, methodically retiring any open risks, constructing and testing missile test objects to assure compliance with capacity requirements, and preparing for manufacture and/or deployment.
The integration and test phase also includes full system integration, incorporation of an inexpensive and executable LRASM manufacturing process into the current Joint Air-to-Surface Standoff Missile – Extended Range production process, inspecting and defining the logistics footprint, designing for easy manufacturing, ensuring affordability, protection of critical program information by applying suitable techniques like anti-tamper and cybersecurity, and demonstration of system integration, interoperability, safety and utility.
Work is scheduled to be complete by Aug 2019 and majority of the work will be performed in Orlando, FL and the rest in Troy, AL and Ocala, FL. The contract will use fiscal 2016 research, development, test and evaluation (Navy) funds.
We remind investors that Lockheed Martin is the largest U.S. defense contractor, with a platform-centric focus that guarantees a steady inflow of follow-on orders from its leveraged presence in the U.S. Army, Air Force, Navy and IT programs. The company’s diverse product offerings allow it to ensure a consistent stream of orders from the U.S. and allied partners.
Lockheed Martin currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other favorably placed stocks in the aerospace and defense space include Engility Holdings, Inc. , BAE Systems plc (BAESY - Free Report) and CAE Inc. (CAE - Free Report) , each carrying the same rank as Lockheed Martin.
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