Back to top

Image: Bigstock

LMT Secures a Contract to Support the Sentinel A4 Radar Systems

Read MoreHide Full Article

Key Takeaways

  • LMT secures a $25M Army contract for engineering services on the Sentinel A4 Radar System.
  • The Sentinel A4 enhances detection of cruise missiles, drones, aircraft and RAM threats.
  • LMT's radar systems serve 45 nations and integrate with platforms like Aegis and NORAD.

Lockheed Martin Corporation's (LMT - Free Report) business segment, Rotary and Mission Systems, recently secured an order worth $25 million to provide engineering services for the Sentinel A4 Radar System. The award has been offered by the Army Contracting Command, Redstone Arsenal, AL.

The work related to this deal will be executed in Liverpool, NY. The contract is projected to be finished by June 3, 2026.

Importance of LMT’s Sentinel A4 Radar System

LMT’s Sentinel A4 is an advanced air and missile defense radar designed to enhance protection against a wide range of aerial threats, including cruise missiles, unmanned aerial systems and both rotary and fixed-wing aircraft.

It introduces the added capability to detect Rocket, Artillery and Mortar (RAM) threats, identifying both their point of origin and point of impact. The system also offers improved defense against electronic threats. It can be easily integrated with current defense systems such as IFPC, NCR-IADS, NASAMS, the Aegis Combat Management System and NORAD.

Such notable features must have been enabling LMT to secure contracts for these radar systems from the Pentagon and other U.S. allies, the latest contract being an example.

LMT’s Growth Opportunities

Rising geopolitical tensions, increased defense spending and the need for advanced threat detection are driving demand for military radars. This must have prompted the Mordor Intelligence firm to project a CAGR of 5.2% for the global military radar market in the 2025-2030 period. Such growth projections bode well for prominent radar manufacturers like LMT. The company’s radars are the choice of more than 45 nations across six continents.

LMT’s product portfolio consists of varied radars, such as TPY-4, AN/APY-9 Radar, AN/TPQ-53 Radar System, SPY-7, TPS-77 in addition to the Sentinel A4.

Opportunities for Other Defense Companies

Some other defense contractors that manufacture radars and are thus projected to gain from the expanding global military radar market have been discussed below:

Northrop Grumman Corp. (NOC - Free Report) : The company is a pioneer in manufacturing Active Electronically Scanned Array radars, with more than 60 years of experience. Its diverse product portfolio also includes a handful of radars like AN/ZPY-5 VADER, AN/TPS-80 G/ATOR, AN/SPQ-9B and HAMMR.

Northrop has a long-term earnings growth rate of 3.3%. The Zacks Consensus Estimate for the company’s 2025 sales indicates year-over-year growth of 2.8%.

L3Harris Technologies, Inc. (LHX - Free Report) : The company’s product portfolio includes the SPS-48 land-based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.

L3Harris has a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for LHX’s 2025 sales implies an improvement of 1%.

RTX Corporation (RTX - Free Report) : The company’s product portfolio consists of varied radars, such as AN/TPY-2, AN/APG-79, APG-82(V)1, GhostEye MR and a few more, which enjoy solid demand in the global military radar market.

RTX has a long-term earnings growth rate of 9.3%. The Zacks Consensus Estimate for RTX’s 2025 sales implies an improvement of 4.2%.

LMT Stock Price Movement

In the past month, shares of LMT have risen 1.4% compared with the industry’s growth of 15.7%.

Zacks Investment Research
Image Source: Zacks Investment Research

LMT’s Zacks Rank

LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in