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Is Lockheed Martin Expanding Its Presence in the Submarine Market?
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Key Takeaways
Lockheed Martin won a nearly $49 million U.S. Navy contract for submarine electronic warfare systems.
Its AN/BLQ-10(V) system boosts threat detection, situational awareness and submarine survivability.
Naval modernization and geopolitical tensions are driving demand for advanced undersea technologies.
Lockheed Martin (LMT - Free Report) continues to strengthen its position in the global submarine market through its portfolio of advanced combat systems, electronic warfare solutions and undersea mission technologies. As navies worldwide modernize their submarine fleet to address evolving maritime threats, the company remains well-positioned to benefit from the rising demand for next-generation underwater defense capabilities.
This is reflected in the company's latest progress, with the U.S. Navy recently awarding LMT a contract valued at nearly $49 million to manufacture submarine electronic warfare systems for both new-construction and in-service submarines. The award highlights the Navy's continued reliance on the company's advanced undersea electronic warfare capabilities.
One of LMT's key offerings is the AN/BLQ-10(V) Submarine Electronic Warfare System, which enhances submarine survivability by providing advanced situational awareness and rapid threat detection. The system receives, analyzes and reports critical electronic signals, enabling submarine crews to identify and respond to potential threats while operating in highly contested environments. Its scalable architecture also supports technology upgrades as mission requirements evolve.
Beyond electronic warfare, LMT contributes to advanced undersea combat capabilities through integrated combat systems, sonar processing technologies and command-and-control solutions that improve the effectiveness of modern submarine operations. These technologies support intelligence gathering, surveillance, anti-submarine warfare and precision strike missions while maintaining a low observable profile.
Growing geopolitical tensions and naval modernization efforts are driving demand for advanced submarine technologies worldwide. LMT's broad portfolio of submarine mission systems and strong relationships with the U.S. Navy and allied customers position it well to capitalize on this trend.
Other Submarine Stocks to Keep on the Watchlist
Other aerospace and defense companies strengthening their presence in the submarine market are discussed below:
Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII builds and supports the Columbia-class and Virginia-class submarines for the U.S. Navy. The company also provides modernization, maintenance and lifecycle support services for nuclear-powered submarines.
BAE Systems (BAESY - Free Report) : BAE Systems plays a key role in the United Kingdom's submarine programs through the design and production of Astute-class nuclear-powered submarines. The company also supports submarine sustainment and next-generation undersea defense capabilities, strengthening its position in the global submarine market.
The Zacks Rundown for LMT
Shares of LMT have risen 9.2% in the past year against the industry’s 2% decline.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.49X compared with its industry’s average of 32.46X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved north over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Is Lockheed Martin Expanding Its Presence in the Submarine Market?
Key Takeaways
Lockheed Martin (LMT - Free Report) continues to strengthen its position in the global submarine market through its portfolio of advanced combat systems, electronic warfare solutions and undersea mission technologies. As navies worldwide modernize their submarine fleet to address evolving maritime threats, the company remains well-positioned to benefit from the rising demand for next-generation underwater defense capabilities.
This is reflected in the company's latest progress, with the U.S. Navy recently awarding LMT a contract valued at nearly $49 million to manufacture submarine electronic warfare systems for both new-construction and in-service submarines. The award highlights the Navy's continued reliance on the company's advanced undersea electronic warfare capabilities.
One of LMT's key offerings is the AN/BLQ-10(V) Submarine Electronic Warfare System, which enhances submarine survivability by providing advanced situational awareness and rapid threat detection. The system receives, analyzes and reports critical electronic signals, enabling submarine crews to identify and respond to potential threats while operating in highly contested environments. Its scalable architecture also supports technology upgrades as mission requirements evolve.
Beyond electronic warfare, LMT contributes to advanced undersea combat capabilities through integrated combat systems, sonar processing technologies and command-and-control solutions that improve the effectiveness of modern submarine operations. These technologies support intelligence gathering, surveillance, anti-submarine warfare and precision strike missions while maintaining a low observable profile.
Growing geopolitical tensions and naval modernization efforts are driving demand for advanced submarine technologies worldwide. LMT's broad portfolio of submarine mission systems and strong relationships with the U.S. Navy and allied customers position it well to capitalize on this trend.
Other Submarine Stocks to Keep on the Watchlist
Other aerospace and defense companies strengthening their presence in the submarine market are discussed below:
Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII builds and supports the Columbia-class and Virginia-class submarines for the U.S. Navy. The company also provides modernization, maintenance and lifecycle support services for nuclear-powered submarines.
BAE Systems (BAESY - Free Report) : BAE Systems plays a key role in the United Kingdom's submarine programs through the design and production of Astute-class nuclear-powered submarines. The company also supports submarine sustainment and next-generation undersea defense capabilities, strengthening its position in the global submarine market.
The Zacks Rundown for LMT
Shares of LMT have risen 9.2% in the past year against the industry’s 2% decline.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.49X compared with its industry’s average of 32.46X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
LMT stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.