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Lockheed Arm Wins $498M Deal to Produce Trident II Missiles
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Lockheed Martin Corp.’s (LMT - Free Report) business unit, Space Systems, recently clinched a modification contract for Trident II (D5) missile production, along with offering deployed systems support. Work related to the deal is scheduled to be completed by Sep 30, 2026.
Valued at $498.4 million, the contract was awarded by Strategic Systems Programs, located in Washington DC. Majority of the task will be completed in Cape Canaveral, FL; Kings Bay, GA; Bangor, WA and Sunnyvale, CA.
The contract will cater to the U.S. Navy and the U.K. government.
Trident II Specifics
Trident II (D5) is the latest generation of submarine-launched fleet ballistic missiles (SLBMs), equipped with multiple independently targetable re-entry vehicles (MIRV) and thermonuclear warheads. Since its design completion in 1989, Trident II (D5) has made 167 successful test launches — a record unmatched by any other large ballistic missile or space launch vehicle.
Our View
Of late, increasing geopolitical conflicts, war and terrorism across the globe have forced developing nations, the United States and other developed countries to significantly boost their missile strength. As a result, the United States — the largest provider of missile defense systems — is witnessing increased number of contracts from its government as well as allies for supplying combat proven missiles.
SLBM is an integral part of the United States’ strategic nuclear deterrent Triad, while Trident II (D5) is one of the major SLBM programs in the nation. This positions Lockheed Martin, which is Trident’s primary contractor, in a comparatively advantageous spot when it comes to the U.S. Navy’s preferred missile programs. These factors might have helped Lockheed Martin to win the latest contract.
Looking Ahead
The global rocket and missile market, which also includes fleet ballistic missiles, is projected to witness CAGR of 4.74% during the 2017-2022 period to reach a value of $70 billion by 2022 (per a report by Markets and Markets research firm).
With the United States being one of the key players in the global missile market, such projections indicate a golden era for the nation’s premier missile defense providers like Lockheed, Raytheon Technologies (RTX - Free Report) , Northrop Grumman (NOC - Free Report) and Boeing (BA - Free Report) .
As far as these stocks’ prospects within the nation are concerned, it is imperative to mention that the U.S. government’s fiscal 2021 defense budget includes a significant spending plan of $13.6 billion on missile defense, 126.6% higher than the previous budget plan. Such an increased spending provision should usher in more contracts for the nation’s varied range of missile programs, like the latest one.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Lockheed Arm Wins $498M Deal to Produce Trident II Missiles
Lockheed Martin Corp.’s (LMT - Free Report) business unit, Space Systems, recently clinched a modification contract for Trident II (D5) missile production, along with offering deployed systems support. Work related to the deal is scheduled to be completed by Sep 30, 2026.
Valued at $498.4 million, the contract was awarded by Strategic Systems Programs, located in Washington DC. Majority of the task will be completed in Cape Canaveral, FL; Kings Bay, GA; Bangor, WA and Sunnyvale, CA.
The contract will cater to the U.S. Navy and the U.K. government.
Trident II Specifics
Trident II (D5) is the latest generation of submarine-launched fleet ballistic missiles (SLBMs), equipped with multiple independently targetable re-entry vehicles (MIRV) and thermonuclear warheads. Since its design completion in 1989, Trident II (D5) has made 167 successful test launches — a record unmatched by any other large ballistic missile or space launch vehicle.
Our View
Of late, increasing geopolitical conflicts, war and terrorism across the globe have forced developing nations, the United States and other developed countries to significantly boost their missile strength. As a result, the United States — the largest provider of missile defense systems — is witnessing increased number of contracts from its government as well as allies for supplying combat proven missiles.
SLBM is an integral part of the United States’ strategic nuclear deterrent Triad, while Trident II (D5) is one of the major SLBM programs in the nation. This positions Lockheed Martin, which is Trident’s primary contractor, in a comparatively advantageous spot when it comes to the U.S. Navy’s preferred missile programs. These factors might have helped Lockheed Martin to win the latest contract.
Looking Ahead
The global rocket and missile market, which also includes fleet ballistic missiles, is projected to witness CAGR of 4.74% during the 2017-2022 period to reach a value of $70 billion by 2022 (per a report by Markets and Markets research firm).
With the United States being one of the key players in the global missile market, such projections indicate a golden era for the nation’s premier missile defense providers like Lockheed, Raytheon Technologies (RTX - Free Report) , Northrop Grumman (NOC - Free Report) and Boeing (BA - Free Report) .
As far as these stocks’ prospects within the nation are concerned, it is imperative to mention that the U.S. government’s fiscal 2021 defense budget includes a significant spending plan of $13.6 billion on missile defense, 126.6% higher than the previous budget plan. Such an increased spending provision should usher in more contracts for the nation’s varied range of missile programs, like the latest one.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>