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LMT Wins $73M Deal to Support MK 41 Vertical Launching System
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Lockheed Martin Corp. (LMT - Free Report) recently announced that its unit, Rotary and Mission Systems, clinched a contract worth $73.1 million to aid MK 41 Vertical Launching System (“VLS”) modules and ancillary equipment. The award has been provided by the Naval Sea Systems Command, WA, D.C.
The work related to this contract will be carried out in multiple locations across the United States and is projected to be completed by December 2026.
A Note on LMT’s MK 41 Vertical Launching System
Lockheed Martin’s MK-41 VLS is a multi-missile storage and firing system for surface ships. The system is designed to be installed below deck and supports missiles for every warfighting domain, such as anti-aircraft, anti-surface, anti-submarine, ballistic missile defense and land attack. Due to its efficiency, this MK 41 VLS has been deployed by 13 navies across 26 ship classes and 180 ships worldwide.
What’s Lies Ahead for Lockheed?
Rapidly increasing geopolitical tensions worldwide and heightened regional conflicts in different parts of the globe have prompted nations to bolster their defense capabilities. Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily in advanced missile systems for deterrence and defense. This has been boosting the demand for technologically advanced missile systems and associated devices like missile launchers.
This must have prompted Mordor Intelligence to predict that the missile and missile defense systems market will increase from $13.51 billion in 2024 to $17.22 billion by 2029 at a CAGR of 5%. Such growth opportunities offered by the aforementioned market should bode well for Lockheed Martin, with its product portfolio consisting of numerous combat-proven missiles and missile systems.
Its Missiles and Fire Control unit is a recognized developer of high-performance missiles. Some of its major programs are the Patriot Advanced Capability-3, Terminal High Altitude Area Defense air and missile defense program and the Multiple Launch Rocket System.
Prospects of LMT’s Peers
Other defense companies that are likely to enjoy the perks of the expanding missile and missile system market have been discussed below:
Northrop Grumman (NOC - Free Report) : The company provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and manufactures warheads, fuses, advanced high-speed propulsion systems and other missile components.
Northrop has a long-term earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales suggests growth of 5.3% from the prior-year reported figure.
RTX Corporation (RTX - Free Report) : It is known for its missile defense systems, such as the Patriot and SM-6, which are in high demand globally. The company also has a handful of combat-proven missiles in its product portfolio, such as the TOW missile, Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Tomahawk and Standard Missile 2.
The company’s long-term earnings growth rate is 10.2%. The Zacks Consensus Estimate for RTX’s 2024 sales indicates year-over-year growth of 7.2%.
The Boeing Company (BA - Free Report) : For almost 25 years, the company has been providing air and missile defense systems to the United States, its allies and international partners. Its offerings include the Avenger Air Defense System, Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
Boeing boasts a long-term (three to five years) earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales implies growth of 23.5% from the 2024 estimated figure.
LMT Stock Price Movement
In the past six months, Lockheed Martin shares have rallied 7.8% against the industry’s decline of 2.3%.
Image: Bigstock
LMT Wins $73M Deal to Support MK 41 Vertical Launching System
Lockheed Martin Corp. (LMT - Free Report) recently announced that its unit, Rotary and Mission Systems, clinched a contract worth $73.1 million to aid MK 41 Vertical Launching System (“VLS”) modules and ancillary equipment. The award has been provided by the Naval Sea Systems Command, WA, D.C.
The work related to this contract will be carried out in multiple locations across the United States and is projected to be completed by December 2026.
A Note on LMT’s MK 41 Vertical Launching System
Lockheed Martin’s MK-41 VLS is a multi-missile storage and firing system for surface ships. The system is designed to be installed below deck and supports missiles for every warfighting domain, such as anti-aircraft, anti-surface, anti-submarine, ballistic missile defense and land attack. Due to its efficiency, this MK 41 VLS has been deployed by 13 navies across 26 ship classes and 180 ships worldwide.
What’s Lies Ahead for Lockheed?
Rapidly increasing geopolitical tensions worldwide and heightened regional conflicts in different parts of the globe have prompted nations to bolster their defense capabilities. Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily in advanced missile systems for deterrence and defense. This has been boosting the demand for technologically advanced missile systems and associated devices like missile launchers.
This must have prompted Mordor Intelligence to predict that the missile and missile defense systems market will increase from $13.51 billion in 2024 to $17.22 billion by 2029 at a CAGR of 5%. Such growth opportunities offered by the aforementioned market should bode well for Lockheed Martin, with its product portfolio consisting of numerous combat-proven missiles and missile systems.
Its Missiles and Fire Control unit is a recognized developer of high-performance missiles. Some of its major programs are the Patriot Advanced Capability-3, Terminal High Altitude Area Defense air and missile defense program and the Multiple Launch Rocket System.
Prospects of LMT’s Peers
Other defense companies that are likely to enjoy the perks of the expanding missile and missile system market have been discussed below:
Northrop Grumman (NOC - Free Report) : The company provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and manufactures warheads, fuses, advanced high-speed propulsion systems and other missile components.
Northrop has a long-term earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales suggests growth of 5.3% from the prior-year reported figure.
RTX Corporation (RTX - Free Report) : It is known for its missile defense systems, such as the Patriot and SM-6, which are in high demand globally. The company also has a handful of combat-proven missiles in its product portfolio, such as the TOW missile, Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Tomahawk and Standard Missile 2.
The company’s long-term earnings growth rate is 10.2%. The Zacks Consensus Estimate for RTX’s 2024 sales indicates year-over-year growth of 7.2%.
The Boeing Company (BA - Free Report) : For almost 25 years, the company has been providing air and missile defense systems to the United States, its allies and international partners. Its offerings include the Avenger Air Defense System, Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
Boeing boasts a long-term (three to five years) earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales implies growth of 23.5% from the 2024 estimated figure.
LMT Stock Price Movement
In the past six months, Lockheed Martin shares have rallied 7.8% against the industry’s decline of 2.3%.
Image Source: Zacks Investment Research
LMT’s 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.