Lockheed Martin Secures $3.37 Billion F-35 Contract And Extra – Lockheed Martin (NYSE:LMT)

On Monday, Lockheed Martin Corp LMT secured a number of main protection contracts, solidifying its function as a key participant in U.S. navy and allied operations.

The corporate acquired a $3.37 billion modification to an present settlement, increasing logistics help for the F-35 Lightning II Joint Strike Fighter program.

This initiative encompasses floor upkeep, pilot coaching, provide chain administration, and depot actions for the Air Pressure, Marine Corps, Navy, International Navy Gross sales (FMS) prospects, and different companions.

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Work will happen in Texas, Florida, South Carolina, Georgia, and California, with completion anticipated by December 2025.

Lockheed Martin has additionally received a $335.7 million contract modification for the F-35 Joint Strike Fighter program. This deal helps numerous 2025 actions, together with plane induction, subject and depot web site help, and specialised gear procurement.

The funds come from a number of sources, together with Navy and Air Pressure procurement budgets and contributions from FMS prospects and program companions. Work will primarily happen in Fort Price, Texas, and can possible conclude by the top of 2025.

The corporate’s Moorestown, New Jersey division secured a $10.5 million contract to proceed engineering and improvement for the AEGIS Fight System.

The undertaking, specializing in delivering superior weapon system capabilities for the Navy’s FFG 62 program, will run till March 2025. Individually, Lockheed Martin’s Orlando, Florida unit acquired a $71.6 million contract to supply depot-level help for Apache assault helicopters, with an estimated completion date of December 2025.

Lockheed Martin inventory gained 7% year-to-date. Elon Musk’s current push for drone warfare over conventional manned plane has sparked debate amongst specialists relating to its feasibility.

Musk criticized Lockheed Martin’s F-35 stealth fighter program, advocating for the usage of drone swarms, which he showcased in a video, and questioning the continued funding in piloted jets. Musk, a Donald Trump ally, is a co-lead of Trump’s Division of Authorities Effectivity (DOGE).

Goldman Sachs maintained a Promote score on Lockheed Martin, citing considerations concerning the F-35 program, which DOGE management has recognized as a possible cost-cutting goal.

Analyst Noah Poponak highlighted dangers to margins and spending, noting that Lockheed’s free money move is projected to stay flat over the approaching years. Poponak additionally identified the inventory’s excessive valuation, buying and selling at 23 occasions estimated 2025 earnings, which he considers a steep premium given these challenges.

Buyers can acquire publicity to Lockheed Martin by way of Vanguard Whole Inventory Market ETF VTI and iShares Core S&P 500 ETF IVV.

Worth Motion: LMT inventory traded larger by 0.52% to $489.01 premarket on the final verify on Tuesday.

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