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Lockheed Martin Expands Mars Ambitions With Next-Gen Mission Design

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Key Takeaways

  • LMT proposes a streamlined Mars Sample Return mission with a price tag under $3 billion.
  • The plan includes a smaller lander, ascent vehicle and Earth Return Orbiter for faster, cheaper delivery.
  • LMT has been involved in every NASA Mars mission and built NASA's first Mars lander.

Lockheed Martin Corporation ((LMT - Free Report) ), widely recognized for its advanced defense systems, also holds a strong position in the space industry. Its space business segment, which plays a key role in areas such as satellite technology, missile warning systems and deep space exploration, has already been involved deeply in Earth-to-Mars missions of NASA.

Impressively, Lockheed Martin built NASA’s first Mars lander and has been a part of every NASA Mars mission since.

Now, Lockheed Martin is aiming even higher with a new streamlined approach to NASA’s Mars Sample Return (MSR) mission, which could set a new standard for future planetary missions. This revolutionary mission aims to collect soil samples from Mars and bring them back to Earth in a single mission.

LMT’s updated plan for the MSR mission introduces a faster and more affordable approach by using a smaller Mars lander with a smaller Mars Ascent Vehicle and a smaller Earth Return Orbiter.

To this end, in a recent development, Lockheed Martin has proposed a commercially-led approach to NASA for executing the MRS mission at a firm-fixed price of under $3 billion. This is a bold alternative to the agency’s current MSR cost projections, which are nearing $7 billion.

As global interest in space continues to rise, such initiatives should bolster the long-term prospects of Lockheed Martin’s space business.

Prospects for Other Space Stocks

The global space economy’s growth prospects also offer significant opportunities for other space stocks like The Boeing Company ((BA - Free Report) ) and Rocket Lab USA Corporation ((RKLB - Free Report) ), which have a significant presence in this arena.

Boeing has decades of experience supporting major U.S. space missions while actively contributing to both government and commercial projects. The company is the prime contractor for the core stage, upper stage and avionics systems of America’s Space Launch System program. BA is also helping return human launch capabilities to U.S. soil through the CST-100 Starliner spacecraft.

On the other hand, Rocket Lab, with its advanced Electron rocket and expanding capabilities in small satellite launches, has already established itself as a prominent launcher in the launch services market. The company recently launched its 68th Electron rocket, with 100% mission success so far this year. It is currently developing the Neutron rocket, aimed at supporting larger payloads and satellite constellation deployments, thereby boosting its competitiveness in the medium-lift launch segment.

The Zacks Rundown for LMT

Shares of LMT have gained 0.1% in the past year compared with the industry’s 19% growth.

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The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.21X compared with its industry’s average of 26.70X.

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The Zacks Consensus Estimate for LMT’s 2025 and 2026 earnings has moved south over the past 60 days.

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Image Source: Zacks Investment Research

LMT stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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