Lockheed Martin Corp.’s business unit, Missile and Fire Control, has secured a contract from the Air Force Life Cycle Management Center, Eglin Air Force Base, FL, for Joint Air-to-Surface Standoff Missile (JASSM) valued at $750.6 million. The contract is expected to be completed by Aug 18, 2027, and Lockheed will provide JASSMs along with containers, tooling and test equipment, and spares to support the missile program. Work related to this deal will be executed in Orlando, FL, and Troy, AL.
What’s Favoring Lockheed?
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 and internationally 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 indicates the strong demand that JASSM 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 reach $73.8 billion by 2026, with a CAGR of 4.8%. Such projections reflect increased growth opportunities for major missile manufacturers like Lockheed, Raytheon, Northrop Grumman (NOC), and Boeing BA in the global market. Raytheon offers a variety of combat-proven missile defense systems like Patriot missile, Standard Missile-6 (SM-6), Standard Missile-3 (SM-3), Advanced Medium-Range Air-to-Air Missile (AMRAAM), Evolved Seasparrow Missile (ESSM), and Tomahawk cruise missile. Northrop manufactures a variety of air, sea, and land-based missile systems’ propulsion control systems that support the U.S. Missile Defense Agency. NOC also produces airborne missile warning systems and medium-class solid rocket motors for the U.S. Navy’s Trident II Fleet Ballistic Missile program. 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.
Price Movement and Zacks Rank
Shares of Lockheed have gained 2.7% in the past year against the industry’s decline of 2%. The company currently carries a Zacks Rank #3 (Hold).
Image by Jacek Dylag on Unsplash
