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Lockheed Martin Wins $509M Contract for GPS III Satellite Project

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Lockheed Martin Corporation (LMT - Free Report) recently won a contract worth nearly $509.8 million from the U.S. Air Force to develop Global Positioning System (GPS) III Follow-On Space Vehicles 21 and 22. 

The work related to this deal will be executed in Littleton, CO, and is projected to be finished by November 2031.

GPS III Contract: A Strategic Win for LMT

The project includes superior anti-jamming and anti-spoofing M-code technology aimed at improving safe access to military GPS signals for the United States and its allied forces.

The deal strengthens Lockheed's position as a leader in space and defense, and recognizes its technological capabilities. It also sets the path for future domestic and international contracts, bolstering Lockheed's strategic position in the U.S. national security and global satellite navigation industry.

LMT’s Role in Next-Gen GPS Market

Rising geopolitical tensions, with threats continuing to evolve and advance, have created a desire for better GPS solutions for air, land and maritime operations. The usage of cutting-edge technology in navigation systems has significantly grown over the last decade as a result of technological advancements, and ongoing research and development in this field.

Lockheed Martin is developing next-generation GPS III/IIIF satellites as part of the U.S. Space Force's efforts to upgrade the GPS network with new technology having increased capabilities.

Opportunities for Other Defense Companies

Other defense companies that are likely to reap the benefits of the military GPS market are listed below:

L3Harris Technologies (LHX - Free Report) : The company has more than 25 years of experience in providing navigation systems to military aircraft and helicopters. Its navigation solutions portfolio, which includes TruTrak and TruNav, offers low-risk, cost-effective, modernized GPS and improved anti-spoof/anti-jam solutions at a variety of SWaP-C points.

L3Harris has a long-term (three to five years) earnings growth rate of 12%. The Zacks Consensus Estimate for LHX’s 2025 sales suggests growth of 1%.

RTX Corporation (RTX - Free Report) : The company's ArtemisPro-M (M-Code GPS) military underwater navigation system is a handheld diver navigation system that is specifically intended to fulfill the needs of military divers and function in harsh combat scenarios.

RTX boasts a long-term earnings growth rate of 9.3%. The Zacks Consensus Estimate for its 2025 sales suggests an improvement of 4.2%.

Northrop Grumman (NOC - Free Report) : The company’s LN-270 is a closely integrated digital INS/GPS that provides unparalleled pointing and navigation performance in GPS-challenged areas. It works with both static and rotational radar systems, sensors and platforms, resulting in the most precise target location performance.

NOC boasts a solid long-term earnings growth rate of 3.3%. The Zacks Consensus Estimate for its 2025 sales indicates year-over-year growth of 2.8%.

LMT Stock Price Movement

In the past three months, Lockheed shares have risen 4.8% compared with the industry’s growth of 11.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

LMT’s 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.

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