Yahoo Finance Lockheed Martin (LMT) Wins $1.4B Deal to Support C-130J Jets
Lockheed Martin Corp.’s LMT Aeronautics unit has recently secured a $1.4-billion contract for providing aircraft sustainment support and services for the C-130J Super Hercules aircraft. The contract, acquired under the Foreign Military Sales (FMS) program, has been awarded by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Per the deal terms, Lockheed Martin will provide program management support, spares, supply support services, support equipment, diminishing manufacturing sources, sustaining engineering services, alongside other associated support and services.
C-130J Specifics
As the world’s premier tactical airlifter, the Super Hercules features tremendous lift capacity, long range and austere landing field capabilities. Rolls-Royce’s RYCEY AE 2100D3 engines and six-bladed Dowty Aerospace R391 composite propellers from General Electric GE improve this aircraft’s performance over legacy C-130 jet. The C-130J Super Hercules’ importance is significantly growing on a global scale, which has currently 25 operators across 21 nations.
All C-130J variants are designed for night operations, while its proven on-board navigation system guides pilots to the proper landing site quickly and safely. Missions performed by the Super Hercules include in-flight refueling, ground fueling, weather reconnaissance, electronic warfare, medical evacuation, search and rescue, paradrop and maritime mission.
Our View
In recent times, military jets in the U.S. aerospace-defense market have gained prominence and significant traction due to advancements and integration of new tactical, logistical and other important features. Some of these developments are attributable to Lockheed Martin and Textron TXT, as both are major pioneers in manufacturing tactical aircraft.
With the fiscal 2021 defense budget offering investment potential worth $56.9 billion in aircraft, we may expect Lockheed Martin’s Aeronautics unit to receive consistent order flows from the Pentagon, like the latest one, in the near future as well. Such contracts are indicative of solid revenue growth prospects for the company’s Aeronautics business segment, which comprises the C-130 Hercules program.
Looking ahead, per a report by Mordor Intelligence, the military transport aircraft market is anticipated to register a CAGR of more than 0.5% for the 2020-2025 period, propelled by a rapid surge in demand for military cargo aircraft or transport aircraft. Such projections will certainly benefit prominent combat jet manufacturers like Lockheed Martin in the days to come.
Zacks Rank & Price Performance
Lockheed Martin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past six months, Lockheed Martin’s shares have declined 4.9% compared with the industry’s 27.7% decline.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
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RollsRoyce Holdings PLC (RYCEY) : Free Stock Analysis Report
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