We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lockheed (LMT) Wins $1.8B Contract to Support F-35 Program
Read MoreHide Full Article
Lockheed Martin Corp.’s (LMT - Free Report) business segment, Aeronautics, recently secured a contract to procure recurring logistics services for delivered F-35 jets. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $1.8 billion, the contract is expected to be completed by December 2021. Per the terms of the deal, Aeronautics will provide ground maintenance activities, action request resolution, depot activation activities and automatic logistics information system operations. It will also offer maintenance, reliability, maintainability and health management implementation and support, supply chain management and activities to provide and support pilot and maintainer initial training.
Majority of the work related to this deal will be performed in Fort Worth, TX.
Rise in Demand Aids F-35 Program
The rise in global terrorism and adverse geopolitical situations have increased the need for enhancing the nation's defense budget, a major portion of which is allocated to combat aircraft. The F-35 program is supported by an international team of leading aerospace majors, such as Northrop Grumman (NOC - Free Report) , BAE Systems (BAESY - Free Report) and Pratt & Whitney, a unit of Raytheon Technologies (RTX - Free Report) . Notably, Northrop Grumman rendered its expertise in carrier aircraft and low-observable stealth technology to this program. Also, BAE Systems’ short takeoff and vertical landing experience, and air systems sustainment supported the jet’s combat capabilities. Pratt & Whitney offered its combat-proven engine to this jet.
Such features have enabled the F-35 jet to dominate the combat aircraft market, buoyed by solid demand as is evident from the frequent contract wins involving F-35 program and its associated upgrades, both from Pentagon and other U.S. allies. The latest contract win is a bright example of that.
Growth Prospects
As of Mar 28, 2021, Lockheed Martin delivered 628 F-35 airplanes since the program's inception with 339 jets still in backlog. This surely boosts sales expectation for the Aeronautics business segment in the coming days.
Moreover, the production of F-35 jets is expected to continue for many years, given the U.S. government's current inventory target of 2,456 aircraft for the Air Force, Marine Corps and Navy. Consequently, we expect Lockheed Martin to witness more order inflows for F-35 and its associated upgrades, like the latest one, which, in turn, should bolster this defense contractor’s top line.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Lockheed (LMT) Wins $1.8B Contract to Support F-35 Program
Lockheed Martin Corp.’s (LMT - Free Report) business segment, Aeronautics, recently secured a contract to procure recurring logistics services for delivered F-35 jets. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $1.8 billion, the contract is expected to be completed by December 2021. Per the terms of the deal, Aeronautics will provide ground maintenance activities, action request resolution, depot activation activities and automatic logistics information system operations. It will also offer maintenance, reliability, maintainability and health management implementation and support, supply chain management and activities to provide and support pilot and maintainer initial training.
Majority of the work related to this deal will be performed in Fort Worth, TX.
Rise in Demand Aids F-35 Program
The rise in global terrorism and adverse geopolitical situations have increased the need for enhancing the nation's defense budget, a major portion of which is allocated to combat aircraft. The F-35 program is supported by an international team of leading aerospace majors, such as Northrop Grumman (NOC - Free Report) , BAE Systems (BAESY - Free Report) and Pratt & Whitney, a unit of Raytheon Technologies (RTX - Free Report) . Notably, Northrop Grumman rendered its expertise in carrier aircraft and low-observable stealth technology to this program. Also, BAE Systems’ short takeoff and vertical landing experience, and air systems sustainment supported the jet’s combat capabilities. Pratt & Whitney offered its combat-proven engine to this jet.
Such features have enabled the F-35 jet to dominate the combat aircraft market, buoyed by solid demand as is evident from the frequent contract wins involving F-35 program and its associated upgrades, both from Pentagon and other U.S. allies. The latest contract win is a bright example of that.
Growth Prospects
As of Mar 28, 2021, Lockheed Martin delivered 628 F-35 airplanes since the program's inception with 339 jets still in backlog. This surely boosts sales expectation for the Aeronautics business segment in the coming days.
Moreover, the production of F-35 jets is expected to continue for many years, given the U.S. government's current inventory target of 2,456 aircraft for the Air Force, Marine Corps and Navy. Consequently, we expect Lockheed Martin to witness more order inflows for F-35 and its associated upgrades, like the latest one, which, in turn, should bolster this defense contractor’s top line.
Price Movement and Zacks Rank
Shares of this Zacks Rank #3 (Hold) company have gained 4.5% in the past year compared with the industry’s growth of 19.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>