Lockheed (LMT) Clinches $7.8B Deal to Support F-35 Program

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Tue, January 3, 2023
Lockheed Martin Corp.’s LMT business unit, Aeronautics, recently secured a modification contract involving different variants of the F-35 fighter jets. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.Details of the Deal Valued at $7.84 billion, the contract is projected to be completed by August 2026. Per the terms of the deal, Lockheed will procure 127 F-35 aircraft from the 16th lot, which includes 89 F-35A jets, 23 F-35B jets and 15 F-35C jets. The contract also entails providing associated auxiliary equipment to support the F-35 Joint Strike Fighter program. The deal will serve the U.S. Air Force, Navy, Marine Corps, the non-U.S. Department of Defense participants, and Foreign Military Sales customers.A major portion of the work related to this contract will be carried out in Fort Worth, TX.

Importance of F-35 for LMT Lockheed Martin 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. Moreover, LMT’s constant efforts to modernize and upgrade the aircraft with advanced technologies and enhance its capabilities to meet current warfare needs boost demand significantly.

The F-35 program remained the largest revenue generator for its Aeronautics business unit and accounted for 68% of Aeronautics’ net sales in 2021.Lockheed Martin has delivered 841 F-35 airplanes since the program's inception, with 271 jets in backlog till September 2022. This, along with the latest contract win, boosts sales expectations for the Aeronautics business segment.Lockheed expects to make deliveries of this stealth aircraft in the range of 147-153 jets per year in 2023 and 2024, and 156 in 2025 and beyond. This, in turn, should bolster LMT’s revenues significantly from the military aircraft arena.

Growth Prospects Per Mordor Intelligence projections, the global military aircraft market is expected to witness a CAGR of more than 4% during 2022-2031. Such projections indicate immense opportunities for Lockheed Martin to further reap the benefits of military aircraft market expansion. Other prominent defense majors that are involved in the manufacturing of military aircraft are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT, which are also expected to benefit from the aforementioned market growth projection.
https://www.yahoo.com/finance/news/lockheed-lmt-clinches-7-8b-123512573.html
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