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Lockheed Secures a $720M Contract for JAGM & Hellfire Missiles

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Key Takeaways

  • {\"0\":\"LMT secures a $720.1M contract to build JAGM missiles, work to finish by September 2028.\",\"1\":\"JAGM merges Hellfire and LONGBOW capabilities for multi-domain combat solutions.\",\"2\":\"Rising global defense demand continues to drive orders for LMT\'s advanced missile systems.\"}

Lockheed Martin Corporation ((LMT - Free Report) ) recently secured a modification contract valued at $720.1 million to produce Joint Air-to-Ground Missiles (JAGM) and Hellfire missiles. The work related to this deal will be carried out in Ocala, FL, and is projected to be completed by Sept. 30, 2028.

The award has been provided by the U.S. Army Contracting Command, Redstone Arsenal, AL.

What’s Favoring LMT Stock?

With countries worldwide enhancing their defense capabilities, spending on advanced military arms and ammunition has been rapidly increasing. This also includes growing investments in missiles and missile systems, which are crucial for warfare missions. Lockheed, as a prominent manufacturer of missiles and missile defense systems, has thus been witnessing a steady flow of orders from the Pentagon and other U.S. allies. The latest contract win is an example of that.

Notably, LMT Hellfire is a multipurpose missile capable of defeating a broad target set. On the other hand, JAGM is a next-generation missile that combines the capabilities of LMT’s Hellfire and LONGBOW missiles into one system, providing multi-domain combat solutions.

The aforementioned missiles’ viability in the defense industry ushers in solid order flow for Lockheed, like the latest one, further reflecting the solid demand that they boast in the missile market.

LMT Stock’s Growth Prospects

Rising military conflicts, terrorism and border disputes have led nations to increase their focus on national security, particularly on missile defense systems, backed by the rapid development of advanced missile technologies over the last decade.

This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 5% for the missiles and missile defense systems market during the 2025-2030 time period.

This should benefit Lockheed, with its Missile and Fire Control unit being a recognized developer of high-performance missiles. The unit pursues business in more than 50 countries worldwide. Some of its major programs are the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense air and missile defense programs as well. Its prominent missiles include the Precision Strike Missile and the Long Range AntiShip Missile.

Prospects of LMT’s Peers

Other defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below.

Northrop Grumman Corporation ((NOC - Free Report) ): Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.

RTX Corporation ((RTX - Free Report) ): It is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.

The Boeing Company ((BA - Free Report) ): It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built and supported air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.

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