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Lockheed (LMT) Wins $123M Deal to Support F-35 Jet Program
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Lockheed Martin Corp. (LMT - Free Report) recently secured a modification contract to support the F-35 Joint Strike Fighter (“JSF”) jet program. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $122.7 million, the contract is expected to get completed by December 2025. Per the terms, Lockheed will be engaged in critical technical refresh actions to support the F-35 JSF pilot and maintainer training site stand-up, schedules, support capability and overall training system sustainment.
The modification will also entail provisions for non-recurring engineering and necessary materials to refresh end-of-life components in fielded F-35 JSF pilot and maintainer training devices.
The contract will serve the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales customers and non-U.S. Department of Defense participants. The majority of the work related to this deal will be carried out in Orlando, FL.
Importance of F-35 for LMT
Lockheed enjoys a dominant position in the global military aircraft space with its F-35 fleet. The stealth aircraft boasts features that make it an ideal choice for many nations. The company’s constant efforts to modernize and upgrade the aircraft using advanced technologies to meet current warfare needs boost demand significantly.
The F-35 program remained the largest revenue generator for the Aeronautics business unit. It also accounted for 66% of the segment’s net sales in 2022.
Lockheed has delivered 894 F-35 airplanes since the program's inception, with 345 jets in the backlog up to December 2022. This, along with the latest contract win, boosts sales expectations for the abovementioned segment.
LMT expects to deliver 147-153 jets per year in 2023 and 2024 and 156 jets in 2025 and beyond. This should bolster the company’s revenues from the military aircraft field.
Growth Prospects
Per Mordor Intelligence projections, the global military aircraft market is expected to witness a CAGR of more than 4% during the 2022-2031 period. Such projections indicate immense opportunities for Lockheed to reap the benefits of military aircraft market expansion.
Other prominent defense majors involved in the manufacturing of military aircraft are Northrop Grumman (NOC - Free Report) , Airbus Group (EADSY - Free Report) and Textron (TXT - Free Report) . These stocks are also expected to gain from the aforementioned market’s growth opportunities.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, it has been providing manned solutions to customers worldwide. The company has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. Meanwhile, the Mission Systems segment offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control, the LONGBOW Fire Control Radar and the Scalable Agile Beam Radar.
Airbus Group’s military aircraft consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide.
Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft and the T-1A jet trainer.
TXT’s subsidiary, Able Aerospace Services, provides component and maintenance, repair and overhaul services in support of commercial and military fixed and rotor-wing aircraft.
Price Movement
Shares of Lockheed have rallied 9.8% in the past 12 months against the industry’s 0.9% decline.
Image: Bigstock
Lockheed (LMT) Wins $123M Deal to Support F-35 Jet Program
Lockheed Martin Corp. (LMT - Free Report) recently secured a modification contract to support the F-35 Joint Strike Fighter (“JSF”) jet program. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $122.7 million, the contract is expected to get completed by December 2025. Per the terms, Lockheed will be engaged in critical technical refresh actions to support the F-35 JSF pilot and maintainer training site stand-up, schedules, support capability and overall training system sustainment.
The modification will also entail provisions for non-recurring engineering and necessary materials to refresh end-of-life components in fielded F-35 JSF pilot and maintainer training devices.
The contract will serve the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales customers and non-U.S. Department of Defense participants. The majority of the work related to this deal will be carried out in Orlando, FL.
Importance of F-35 for LMT
Lockheed enjoys a dominant position in the global military aircraft space with its F-35 fleet. The stealth aircraft boasts features that make it an ideal choice for many nations. The company’s constant efforts to modernize and upgrade the aircraft using advanced technologies to meet current warfare needs boost demand significantly.
The F-35 program remained the largest revenue generator for the Aeronautics business unit. It also accounted for 66% of the segment’s net sales in 2022.
Lockheed has delivered 894 F-35 airplanes since the program's inception, with 345 jets in the backlog up to December 2022. This, along with the latest contract win, boosts sales expectations for the abovementioned segment.
LMT expects to deliver 147-153 jets per year in 2023 and 2024 and 156 jets in 2025 and beyond. This should bolster the company’s revenues from the military aircraft field.
Growth Prospects
Per Mordor Intelligence projections, the global military aircraft market is expected to witness a CAGR of more than 4% during the 2022-2031 period. Such projections indicate immense opportunities for Lockheed to reap the benefits of military aircraft market expansion.
Other prominent defense majors involved in the manufacturing of military aircraft are Northrop Grumman (NOC - Free Report) , Airbus Group (EADSY - Free Report) and Textron (TXT - Free Report) . These stocks are also expected to gain from the aforementioned market’s growth opportunities.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, it has been providing manned solutions to customers worldwide. The company has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. Meanwhile, the Mission Systems segment offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control, the LONGBOW Fire Control Radar and the Scalable Agile Beam Radar.
Airbus Group’s military aircraft consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide.
Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft and the T-1A jet trainer.
TXT’s subsidiary, Able Aerospace Services, provides component and maintenance, repair and overhaul services in support of commercial and military fixed and rotor-wing aircraft.
Price Movement
Shares of Lockheed have rallied 9.8% in the past 12 months against the industry’s 0.9% decline.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.