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Can Faster JATM Production Strengthen Lockheed Martin's Growth?
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Key Takeaways
Lockheed Martin signed a U.S. framework agreement to accelerate JATM production and deliveries.
JATM's compatibility with F-22 and F-35 aircraft could support broader adoption across U.S. and allied fleet.
Australia's nearly $736 million JATM investment adds to Lockheed Martin's international growth opportunities.
Lockheed Martin (LMT - Free Report) is strengthening its position in advanced air-to-air weapons as the U.S. military focuses on improving air dominance capabilities. The company recently signed a framework agreement with the U.S. Department of War to accelerate production and delivery of the AIM-260 Joint Advanced Tactical Missile (JATM).
JATM is designed to provide greater range and effectiveness than existing air-to-air weapons and can be integrated with multiple Air Force and Navy aircraft, including the F-22 Raptor and F-35 Lightning II. Its compatibility across several platforms could support broader adoption as the U.S. and allied nations modernize their air combat capabilities.
Under the agreement, Lockheed Martin will invest to increase production capacity and support faster delivery of JATM. The framework also provides the foundation for a potential multiyear procurement contract, subject to Congressional approval. Such an agreement could provide greater long-term demand visibility and support expansion of the program’s defense industrial base.
International demand is also emerging as Australia announced an investment of nearly $736 million in August 2026 to equip its Royal Australian Air Force with JATM. Additional international adoption could create further production and sustainment opportunities for Lockheed Martin.
With growing demand for advanced air combat capabilities, investments in production capacity and increasing international interest, Lockheed Martin is well-positioned to benefit from the continued modernization of air-to-air weapons and strengthen its position in the global defense market.
Defense Stocks to Keep on the Radar
Other defense companies developing advanced air-to-air and missile technologies are discussed below:
RTX Corporation (RTX - Free Report) : RTX develops advanced air-to-air missiles and propulsion systems, including the AIM-120 AMRAAM and AIM-9X. Continued demand for modern air combat weapons should support its missile business.
Northrop Grumman (NOC - Free Report) : Northrop Grumman provides advanced sensors, electronic warfare and mission systems for combat aircraft. Its technologies support aircraft survivability and situational awareness as air forces modernize their capabilities.
The Zacks Rundown for LMT
Shares of LMT have risen 13.8% in the past year against the industry’s 13.1% decline.
Image Source: Zacks Investment Research
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.70X compared with its industry’s average of 29.38X.
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
Can Faster JATM Production Strengthen Lockheed Martin's Growth?
Key Takeaways
Lockheed Martin (LMT - Free Report) is strengthening its position in advanced air-to-air weapons as the U.S. military focuses on improving air dominance capabilities. The company recently signed a framework agreement with the U.S. Department of War to accelerate production and delivery of the AIM-260 Joint Advanced Tactical Missile (JATM).
JATM is designed to provide greater range and effectiveness than existing air-to-air weapons and can be integrated with multiple Air Force and Navy aircraft, including the F-22 Raptor and F-35 Lightning II. Its compatibility across several platforms could support broader adoption as the U.S. and allied nations modernize their air combat capabilities.
Under the agreement, Lockheed Martin will invest to increase production capacity and support faster delivery of JATM. The framework also provides the foundation for a potential multiyear procurement contract, subject to Congressional approval. Such an agreement could provide greater long-term demand visibility and support expansion of the program’s defense industrial base.
International demand is also emerging as Australia announced an investment of nearly $736 million in August 2026 to equip its Royal Australian Air Force with JATM. Additional international adoption could create further production and sustainment opportunities for Lockheed Martin.
With growing demand for advanced air combat capabilities, investments in production capacity and increasing international interest, Lockheed Martin is well-positioned to benefit from the continued modernization of air-to-air weapons and strengthen its position in the global defense market.
Defense Stocks to Keep on the Radar
Other defense companies developing advanced air-to-air and missile technologies are discussed below:
RTX Corporation (RTX - Free Report) : RTX develops advanced air-to-air missiles and propulsion systems, including the AIM-120 AMRAAM and AIM-9X. Continued demand for modern air combat weapons should support its missile business.
Northrop Grumman (NOC - Free Report) : Northrop Grumman provides advanced sensors, electronic warfare and mission systems for combat aircraft. Its technologies support aircraft survivability and situational awareness as air forces modernize their capabilities.
The Zacks Rundown for LMT
Shares of LMT have risen 13.8% in the past year against the industry’s 13.1% decline.
Image Source: Zacks Investment Research
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.70X compared with its industry’s average of 29.38X.
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.