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NDMA to Acquire Lockheed Martin's Three More TPY-4 Radars
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Lockheed Martin Corp. (LMT - Free Report) recently secured a deal for three more TPY-4 radars from the Norwegian Defense Materiel Agency (“NDMA”), increasing the number of ground-based multi-mission radars for NDMA to 11.
The extra order and the completion of the Critical Design Review are key steps forward, validating the radar’s importance in Norway's security.
LMT’s High-Quality Radars
With the fast growth of geopolitical tensions in recent years, governments throughout the world have significantly strengthened their military arsenal. As radars are such a crucial component of this arsenal, rising defense spending has resulted in a rise in radar investments.
Military ground-based radars are crucial for observing, tracking, and recognizing surface and aerial threats. By providing real-time data, they enhance situational awareness, aid early warning systems and assist in defensive operations. This must have been ushering in a solid order flow for radar manufacturing companies like Lockheed Martin, whose radars are chosen by more than 45 countries across six continents.
LMT's TPY-4 is a multi-mission, ground-based radar for air defense surveillance that can operate in disputed electromagnetic environments and allows the warfighter to detect and monitor existing and potential threats. It is also equipped with Gallium Nitride technology, which increases efficiency and reliability when compared to previous systems.
Lockheed’s Growth Opportunities
The need for military radars has skyrocketed in recent years due to causes such as rising defense spending in developing countries, increased geopolitical tensions and inter-country conflicts that have heightened threats from missiles and aircraft. This must have prompted the Markets and Markets firm to project a CAGR of 5.4% for the military radar market in the 2024-2029 period. Such growth projections bode well for prominent radar manufacturers like LMT.
LMT’s product portfolio consists of more varied radars like missile defense radars, ballistic missile radars as well as surveillance radars. Apart from TPY-4, the AN/APY-9 Radar, the AN/TPQ-53 Radar System, SPY-7, TPS-77 and Sentinel A4 are some of the company’s combat-proven products that enjoy solid demand in the global military radar market.
Prospects of LMT’s Peers
Other defense contractors that are major radar producers and are projected to gain from the growth potential provided by the global military radar industry are listed below:
RTX Corporation (RTX - Free Report) : The company’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. Radars like SPY 6, APG-63(V)3, APG-79 and APG-82(V)1 and GhostEye are some of its combat-proven products that enjoy solid demand in the global military radar market.
RTX has a long-term (three to five years) earnings growth rate of 10.4%. The Zacks Consensus Estimate for the company’s 2024 sales indicates year-over-year growth of 7%.
Northrop Grumman (NOC - Free Report) : The company has been at the forefront of AESA innovations for more than 60 years. Its diverse product portfolio includes a handful of other radars like AN/ZPY-5 VADER, AN/TPS-80 G/ATOR, AN/TPS-78 and HAMMR.
Northrop has a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for the company’s 2024 sales indicates year-over-year growth of 5.4%.
L3Harris Technologies (LHX - Free Report) : The company manufactures combat-proven radars like SPS-48 land-based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.
L3Harris has a long-term earnings growth rate of 8.9%. The Zacks Consensus Estimate for LHX’s 2024 sales implies an improvement of 9.6% from the prior-year figure.
LMT Stock’s Price Movement
In the past six months, shares of Lockheed Martin have risen 31.6% compared with the industry’s growth of 2.8%.
Image: Bigstock
NDMA to Acquire Lockheed Martin's Three More TPY-4 Radars
Lockheed Martin Corp. (LMT - Free Report) recently secured a deal for three more TPY-4 radars from the Norwegian Defense Materiel Agency (“NDMA”), increasing the number of ground-based multi-mission radars for NDMA to 11.
The extra order and the completion of the Critical Design Review are key steps forward, validating the radar’s importance in Norway's security.
LMT’s High-Quality Radars
With the fast growth of geopolitical tensions in recent years, governments throughout the world have significantly strengthened their military arsenal. As radars are such a crucial component of this arsenal, rising defense spending has resulted in a rise in radar investments.
Military ground-based radars are crucial for observing, tracking, and recognizing surface and aerial threats. By providing real-time data, they enhance situational awareness, aid early warning systems and assist in defensive operations. This must have been ushering in a solid order flow for radar manufacturing companies like Lockheed Martin, whose radars are chosen by more than 45 countries across six continents.
LMT's TPY-4 is a multi-mission, ground-based radar for air defense surveillance that can operate in disputed electromagnetic environments and allows the warfighter to detect and monitor existing and potential threats. It is also equipped with Gallium Nitride technology, which increases efficiency and reliability when compared to previous systems.
Lockheed’s Growth Opportunities
The need for military radars has skyrocketed in recent years due to causes such as rising defense spending in developing countries, increased geopolitical tensions and inter-country conflicts that have heightened threats from missiles and aircraft. This must have prompted the Markets and Markets firm to project a CAGR of 5.4% for the military radar market in the 2024-2029 period. Such growth projections bode well for prominent radar manufacturers like LMT.
LMT’s product portfolio consists of more varied radars like missile defense radars, ballistic missile radars as well as surveillance radars. Apart from TPY-4, the AN/APY-9 Radar, the AN/TPQ-53 Radar System, SPY-7, TPS-77 and Sentinel A4 are some of the company’s combat-proven products that enjoy solid demand in the global military radar market.
Prospects of LMT’s Peers
Other defense contractors that are major radar producers and are projected to gain from the growth potential provided by the global military radar industry are listed below:
RTX Corporation (RTX - Free Report) : The company’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars and air dominance radars. Radars like SPY 6, APG-63(V)3, APG-79 and APG-82(V)1 and GhostEye are some of its combat-proven products that enjoy solid demand in the global military radar market.
RTX has a long-term (three to five years) earnings growth rate of 10.4%. The Zacks Consensus Estimate for the company’s 2024 sales indicates year-over-year growth of 7%.
Northrop Grumman (NOC - Free Report) : The company has been at the forefront of AESA innovations for more than 60 years. Its diverse product portfolio includes a handful of other radars like AN/ZPY-5 VADER, AN/TPS-80 G/ATOR, AN/TPS-78 and HAMMR.
Northrop has a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for the company’s 2024 sales indicates year-over-year growth of 5.4%.
L3Harris Technologies (LHX - Free Report) : The company manufactures combat-proven radars like SPS-48 land-based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G Long range 3D surveillance radar and many more.
L3Harris has a long-term earnings growth rate of 8.9%. The Zacks Consensus Estimate for LHX’s 2024 sales implies an improvement of 9.6% from the prior-year figure.
LMT Stock’s Price Movement
In the past six months, shares of Lockheed Martin have risen 31.6% compared with the industry’s growth of 2.8%.
Image Source: Zacks Investment Research
LMT’s Zacks Rank
LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.