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Lockheed (LMT) Secures a Deal to Aid H-60 Black Hawk helicopters
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Lockheed Martin Corp.’s (LMT - Free Report) business unit, Sikorsky, recently clinched a contract to conduct configurations for various H-60 Black Hawk helicopters. Work related to this deal is expected to be completed by Aug 21, 2029.
Valued at $97.3 million, the contract has been awarded by the Army Contracting Command, Redstone Arsenal, AL.
What Offers Lockheed an Edge?
Lockheed's H-60 fleet of Black Hawk multirole helicopters is a vital asset for the U.S. military and the armed forces of 34 other nations. Equipped with digital avionics, powerful GE engines, durable airframe structures and composite wide-chord rotor blades, the modern BLACK HAWK platform offers enhanced survivability and situational awareness. It also boasts the ability to fly higher and carry more than its predecessors.
The helicopter's advanced weapon system enables pilots to identify and engage both stationary and moving targets using forward-firing guns, rockets and laser-guided air-to-ground missiles.
These impressive features likely contribute to the strong order flow that Lockheed continues to receive, as seen in the latest contract.
With more than 4,000 BLACK HAWK aircraft of various types in service globally, the demand for Lockheed's H-60 helicopters remains robust in the combat helicopter market. This strong demand is expected to lead to more contract wins for Lockheed, like the latest one, potentially boosting revenue growth for its Sikorsky business unit in the near future.
LMT’s Growth Prospects
Recent advancements and the integration of new tactical, logistical, and essential features have significantly increased the prominence and demand for U.S. military helicopters. As a leading combat helicopter manufacturer, Lockheed is well-positioned to benefit from this trend, consistently securing helicopter delivery and service contracts from the Pentagon and U.S. allies. The recent contract award is a prime example of this success.
Looking forward, escalating geopolitical tensions and cross-border conflicts worldwide are driving nations to boost defense spending on new aircraft and helicopters to strengthen their aerial capabilities. According to a report by the Mordor Intelligence firm, the military helicopters market is projected to witness a compound annual growth rate (CAGR) of 2.9% between 2024 and 2030.
This should significantly boost Lockheed’s performance, as the company enjoys a dominant position in the military helicopter market with its portfolio containing combat-proven programs like Black Hawk, MH-60R Seahawk, HH-60W Combat Rescue, CH-148 Cyclone, S-97 Raider and CH-53K King Stallion heavy-lift helicopters.
Opportunities for Peers
Other defense companies that should enjoy the perks of the expanding military helicopter market have been discussed below.
Boeing (BA - Free Report) : The company’s helicopters are renowned for their leading-edge, ready and relevant solutions that deliver proven capabilities. Boeing’s product portfolio includes combat helicopters and rotorcraft like CH-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.
Boeing has a long-term (three to five years) earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates an improvement of 2.5% from the prior-year quarter’s reported figure.
Airbus Group (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Its product portfolio includes the H135 combat helicopter, the H145M helicopter, AS565 MBe Panther, H160M, H175M, H215M, H225M and a few more.
Airbus’ long-term earnings growth rate is 13.9%. The consensus estimate for EADSY’s 2024 sales indicates an improvement of 7.2% from the 2023 reported figure.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of helicopters to the U.S. government. In association with Boeing, this unit is the only supplier of military tiltrotor aircraft. Some of TXT’s key programs are AH-1Z helicopter, V-22 tiltrotor, V-247 and V280 aircraft.
Textron boasts a long-term earnings growth rate of 10.1%. The Zacks Consensus Estimate for TXT’s 2024 sales indicates an improvement of 5.6% from the 2023 reported figure.
Price Movement
In the past year, shares of Lockheed have surged 21.8% against the industry’s decline of 2.3%.
Image: Shutterstock
Lockheed (LMT) Secures a Deal to Aid H-60 Black Hawk helicopters
Lockheed Martin Corp.’s (LMT - Free Report) business unit, Sikorsky, recently clinched a contract to conduct configurations for various H-60 Black Hawk helicopters. Work related to this deal is expected to be completed by Aug 21, 2029.
Valued at $97.3 million, the contract has been awarded by the Army Contracting Command, Redstone Arsenal, AL.
What Offers Lockheed an Edge?
Lockheed's H-60 fleet of Black Hawk multirole helicopters is a vital asset for the U.S. military and the armed forces of 34 other nations. Equipped with digital avionics, powerful GE engines, durable airframe structures and composite wide-chord rotor blades, the modern BLACK HAWK platform offers enhanced survivability and situational awareness. It also boasts the ability to fly higher and carry more than its predecessors.
The helicopter's advanced weapon system enables pilots to identify and engage both stationary and moving targets using forward-firing guns, rockets and laser-guided air-to-ground missiles.
These impressive features likely contribute to the strong order flow that Lockheed continues to receive, as seen in the latest contract.
With more than 4,000 BLACK HAWK aircraft of various types in service globally, the demand for Lockheed's H-60 helicopters remains robust in the combat helicopter market. This strong demand is expected to lead to more contract wins for Lockheed, like the latest one, potentially boosting revenue growth for its Sikorsky business unit in the near future.
LMT’s Growth Prospects
Recent advancements and the integration of new tactical, logistical, and essential features have significantly increased the prominence and demand for U.S. military helicopters. As a leading combat helicopter manufacturer, Lockheed is well-positioned to benefit from this trend, consistently securing helicopter delivery and service contracts from the Pentagon and U.S. allies. The recent contract award is a prime example of this success.
Looking forward, escalating geopolitical tensions and cross-border conflicts worldwide are driving nations to boost defense spending on new aircraft and helicopters to strengthen their aerial capabilities. According to a report by the Mordor Intelligence firm, the military helicopters market is projected to witness a compound annual growth rate (CAGR) of 2.9% between 2024 and 2030.
This should significantly boost Lockheed’s performance, as the company enjoys a dominant position in the military helicopter market with its portfolio containing combat-proven programs like Black Hawk, MH-60R Seahawk, HH-60W Combat Rescue, CH-148 Cyclone, S-97 Raider and CH-53K King Stallion heavy-lift helicopters.
Opportunities for Peers
Other defense companies that should enjoy the perks of the expanding military helicopter market have been discussed below.
Boeing (BA - Free Report) : The company’s helicopters are renowned for their leading-edge, ready and relevant solutions that deliver proven capabilities. Boeing’s product portfolio includes combat helicopters and rotorcraft like CH-47 Chinook, AH-64 Apache, AH-6 Little Bird and V-22 Osprey.
Boeing has a long-term (three to five years) earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates an improvement of 2.5% from the prior-year quarter’s reported figure.
Airbus Group (EADSY - Free Report) : It is one of the world's largest suppliers of advanced military helicopters. Its product portfolio includes the H135 combat helicopter, the H145M helicopter, AS565 MBe Panther, H160M, H175M, H215M, H225M and a few more.
Airbus’ long-term earnings growth rate is 13.9%. The consensus estimate for EADSY’s 2024 sales indicates an improvement of 7.2% from the 2023 reported figure.
Textron (TXT - Free Report) : Its Bell unit is one of the leading suppliers of helicopters to the U.S. government. In association with Boeing, this unit is the only supplier of military tiltrotor aircraft. Some of TXT’s key programs are AH-1Z helicopter, V-22 tiltrotor, V-247 and V280 aircraft.
Textron boasts a long-term earnings growth rate of 10.1%. The Zacks Consensus Estimate for TXT’s 2024 sales indicates an improvement of 5.6% from the 2023 reported figure.
Price Movement
In the past year, shares of Lockheed have surged 21.8% against the industry’s decline of 2.3%.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.