Lockheed Martin Corp. (LMT - Free Report) has won two contracts, with a combined value of $255.8 million, from the U.S. Special Operations Command and the Army.
Details of the Contracts
Lockheed’s Mission Systems and Training unit secured the contract worth $166 million,from the Special Operations Command, FL. Per the deal, the unit will design, develop, test and produce dry combat submersible system to support the latter’sactivities.The contract was awarded after an open competition and Lockheed’s unit was selected from the 34 applicants for the contract. The majority of the work will be performed in Riviera Beach, FL; and the UK and is expected to be complete by 2021.
The second contract, worth $89.8 million, was awarded to LONGBOW Limited Liability Company, a joint venture between Lockheed Martin and Northrop Grumman Corporation (NOC - Free Report) by the U.S. Army.The contract covers upgrades for the LONGBOW Fire Control Radar in the Apache attack helicopter.
The LONGBOW Fire Control Radar is known for its high processing power, light weight and low cost of maintenance. They also offer automated engagement or multiple targets, irrespective of weather, terrain and other factors in the field.
The order calls for the production of 84 Radar Electronics Units. Work will be performed in Baltimore and Florida, and will run through Jan 2019.
Lockheed Martin enjoys a steady inflow of follow-on orders from its leveraged presence in the U.S. Army, Air Force, Navy and IT programs. For 2016, it expects to deliver 53 more F-35 aircrafts. Production of the aircraft is expected to continue for many years given the U.S. government’s current inventory target of 2,443 units for the Air Force, Marine Corps and Navy.
Geopolitical tensions and the rise of ISIS have led to various nations stepping up their defense capabilities. The direct beneficiary of a volatile geo-economy is undoubtedly the aerospace and defense players. Lockheed Martin with its leading position is expected to get a boost from rising international weapons sales.
Zacks Rank & Key Picks in the Sector
Lockheed Martin currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the aerospace sector include Orbital ATK, Inc. and Raytheon Company (RTN - Free Report) , both carrying a Zacks Rank #2 (Buy).
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