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Lockheed (LMT) Secures Air Force Contract to Support JASSM

Lockheed Martin Corp. LMT recently clinched a modification contract involving Joint Air-to-Surface Standoff Missile (JASSM). The award has been offered by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.

Details of the Deal

Valued at $29.2 million, the contract is expected to be completed by Jan 31, 2026. Per the terms of the deal, Lockheed will provide maintenance, additional tooling and equipment for JASSM.

Work related to this contract will be executed in Orlando, FL.

What’s Favoring Lockheed?

Increasing geopolitical and socioeconomic turmoil worldwide has prompted nations, both developed and developing, to expand their respective military arsenal with missiles constituting a significant portion of that inventory.

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Notably, JASSM is integrated on a handful of the U.S. Air Force's jets like B-1B, B-2, B-52, F-16 and F-15E. Internationally, it is carried on the F/A-18A/B and the F-18C/D aircraft.

Future integration efforts will focus on the U.S. and international versions of Lockheed’s F-35 Lightning II fighter aircraft and other international platforms. This surely indicates the strong demand that this missile enjoys in the domestic as well as international defense space. The latest contract win is a testament to that.

What Lies Ahead?

The global rockets and missiles market, valued at $58.3 billion in 2021, is projected to witness a CAGR of 4.8% to reach $73.8 billion by 2026, per a report by Markets and Markets firm.

Such projections reflect increased growth opportunities for major missile manufacturers like Lockheed, Raytheon RTX, Northrop Grumman NOC and Boeing BA in the aforementioned market.

Notably, Raytheon offers a variety of combat-proven missile defense systems, including the Patriot missile, Standard Missile-6 (SM-6), Standard Missile-3 (SM-3), Advanced Medium-Range Air-to-Air Missile (AMRAAM), Evolved Seasparrow Missile (ESSM), Tomahawk cruise missile and a few more.

The company boasts a long-term earnings growth rate of 8.3%. The Zacks Consensus Estimate for 2023 sales implies an improvement of 8.3% from the year-ago reported figure.

Northrop manufactures a variety of air, sea and land-based missile systems’ propulsion control systems that support the U.S. Missile Defense Agency. It also produces airborne missile warning systems and medium-class solid rocket motors for the U.S. Navy's Trident II Fleet Ballistic Missile program.

NOC boasts a long-term earnings growth rate of 3.8%. The Zacks Consensus Estimate for 2023 sales indicates a 4.7% increase from the 2022 reported number.

Boeing’s missile defense capabilities provide defensive and strategic systems that protect the homeland and deployed forces. The company’s systems within the Integrated Air & Missile Defense portfolio include Arrow 3, which offers regional missile defense capabilities for an effective response to short and medium-range ballistic missiles.

BA boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for 2023 sales implies an improvement of 18% from that registered in 2022.

Price Movement and Zacks Rank

Shares of Lockheed have gained 5% in the past year against the industry’s decline of 1.2%.

Zacks Investment Research
Zacks Investment Research


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The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The Boeing Company (BA) : Free Stock Analysis Report

Lockheed Martin Corporation (LMT) : Free Stock Analysis Report

Northrop Grumman Corporation (NOC) : Free Stock Analysis Report

Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report

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