Lockheed Martin Clinches a $233M Deal to Support CH-53K Helicopter

Lockheed Martin Corp.’s LMT business unit, Sikorsky Aircraft, recently clinched a contract to procure extra-long-lead-time materials to aid full-rate production of Lot 10 of the CH-53K helicopter for the U.S. Marine Corps. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.Valued at $232.5 million, the contract is expected to be completed by March 2026. The work related to this deal will be carried out in Stratford, CT.LMT’s Expertise in Military Helicopters As nations are upgrading their defense capabilities, expenditures on cutting-edge defense equipment and ammunition have been rising quickly. Increasing expenditures on military helicopters, which are essential for air combat operations, contribute to the rising defense expenditures. As a leading manufacturer of combat helicopters, Lockheed has received a steady stream of orders from all over the world.Lockheed’s unit Sikorsky Aircraft is recognized for its prowess in designing and constructing modern combat helicopters. Their specialty is in manufacturing long-lasting, high-performance rotorcraft with cutting-edge technology, assuring versatility, agility and dependability for modern military operations and missions.In particular, LMT’s CH-53K King Stallion builds on Sikorsky’s five decades of success with earlier models like the CH-53A, CH-53D/G and CH-53E. With its intelligent, dependable, low-maintenance and highly survivable design, the CH-53K is built for modern combat, including shipboard operations.Stable Demand for LMT’s Military Helicopters Amid rising military conflicts, terrorism and border disputes, these combat-proven helicopters play a critical role in a country's security system. This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 2.2% for the military helicopter market during the 2025-2030 period.Such a solid growth projection is expected to boost Lockheed, which holds a leading position in the military helicopter market with a portfolio that includes the Armed Black Hawk, MH-60R SEAHAWK, Raider X, S-97 Raider, S-70 BLACK Hawk and a few more helicopters. This should position the company for continued growth in the coming years.Opportunities for Other Defense Companies Other defense companies that are expected to enjoy the perks of the expanding military helicopter market have been discussed below:Boeing BA: The company’s helicopters are renowned for their leading-edge, ready and relevant solutions that deliver proven capabilities. Boeing’s product portfolio includes combat helicopters and rotorcraft like the MH-139, AH-64 Apache, AH-6 Little Bird, V-22 Osprey and a few more.Boeing has a long-term (three to five years) earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales indicates an improvement of 25.6% from the 2024 reported figure.Textron TXT: Its Bell business segment supplies advanced military helicopters and provides parts and support services to the U.S. government and military customers outside the United States. Its portfolio of combat helicopters includes Bell 412M, Bell 429M, Bell 407M and Bell 505M. TXT boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT’s 2025 sales indicates year-over-year growth of 6.9% from the 2024 reported figure.Airbus Group EADSY: It is one of the world's largest suppliers of advanced military helicopters. EADSY’s product portfolio includes the H125M, H160M, H175M, H215M, H225M, Tiger, NH90 and a few more.The company’s long-term earnings growth rate is 9.4%. The Zacks Consensus Estimate for EADSY’s 2025 sales indicates an improvement of 3.9% from the 2024 reported figure.LMT Stock Price Movement In the past year, Lockheed shares have risen 2.7% against the industry’s fall of 6.2%.Image Source: Zacks Investment ResearchLMT’s Zacks Rank Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks