Lockheed Martin Secures a $266M Contract to Aid F-16 Jet Program

Lockheed Martin Corporation’s LMT Aeronautics business segment recently clinched a modification contract to support the F-16 jet program. The award has been provided by the Air Force Lifecycle Management Center, F-16 FMS Contracting Division, Hill Air Force Base, UT.Details of LMT’s DealValued at $266 million, the contract is expected to be completed by March 31, 2032. Per the terms of the deal, Lockheed Martin will provide operational flight program updates and transfer F-16 aircraft from Denmark to Argentina.This contract includes foreign military sales to Argentina. The work related to this deal will be executed in Fort Worth, TX, Denmark and Argentina.LMT Stock’s Growth PotentialRising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their defense spending on combat-proven jets, which constitute an integral part of their defense structure.This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 4.7% for the military aviation market during the 2025-2030 period.Such strong market prospects drive growth opportunities for Lockheed Martin, backed by its robust portfolio of combat jets, including F-21, F-2 Support Fighter, F-35 and F-22 Raptor, in addition to the F-16 jets. Notably, such a wide range of military aircraft in its portfolio enables the company to secure valuable contracts like the latest one, which, in turn, should bolster its future revenue prospects.In particular, LMT’s F-16 Fighting Falcon is a combat-proven multi-role fighter jet that enjoys a solid presence in the military aviation market. The current backlog of the F-16 Block 70/72 program is 117 aircraft to be produced in Greenville, with 23 already delivered for international partners.Opportunities for LMT’s PeersOther aerospace companies that are likely to benefit from the expanding global military aviation market are discussed below:Northrop Grumman Corporation NOC: Northrop is a provider of manned and unmanned combat air systems. It builds some of the world’s most advanced aircraft like the E-2C Hawkeye 2000, A-10 Thunderbolt II, F-5 Tiger Fighter Jet and many more.Northrop has a long-term (three to five years) earnings growth rate of 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.Embraer ERJ: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.ERJ delivered an average earnings surprise of 138.39% in the last four quarters. The Zacks Consensus Estimate for ERJ’s 2025 sales indicates year-over-year growth of 15.1%.The Boeing Company BA: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes F/A-18 Super Hornet, P-8, F-15EX, CH-47 Chinook, Chinook Block II, EA-18G Growler and a few more.Boeing boasts a long-term earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales implies an improvement of 25.6% from the prior-year number.LMT Stock Price MovementShares of Lockheed Martin have gained 7.8% in the past month against the industry’s 1% decline.Image Source: Zacks Investment ResearchLMT’s Zacks RankLockheed Martin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Northrop Grumman Corporation (NOC): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): 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