Lockheed Martin Secures a Contract to Support Submarines

Lockheed Martin Corporation LMT recently clinched a contract involving submarines. The award has been offered by the Naval Sea Systems Command, Washington, D.C.Details of LMT’s DealValued at $54.2 million, the contract is expected to be completed by January 2028. Per the terms of the deal, Lockheed Martin will manufacture submarine electronic warfare systems for newly constructed and in-service submarines.The work related to this deal will be executed in Syracuse, NY.LMT Stock’s Growth ProspectsRising military conflicts, terrorism and border disputes have driven nations to focus more on national security and investments in enhancing their submarine fleet. This surge is fueled by the increasing demand for advanced technologies like stealth capabilities, underwater surveillance, advanced electronic warfare systems and long-range strike systems, as well as the growing complexity of modern naval warfare.This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 7.6% for the global submarine market during the 2025-2030 time period.This is likely to benefit Lockheed Martin, a major provider of electronic warfare systems that offer situational awareness across multiple domains including surface fleet and submarines. Notably, LMT’s AN/BLQ-10(V) Submarine Electronic Warfare System rapidly receives, analyzes and reports critical signals of immediate importance to the submarine commanding officer. With such combat proven products in its portfolio, LMT continues to win a solid inflow of contracts, with the latest one being a prime example of that.Opportunities for Other Defense PlayersOther defense companies that are likely to enjoy the perks of the expanding global submarine market have been discussed below:Huntington Ingalls Industries HII: Through its Newport News Shipbuilding division, HII is involved in producing the Columbia-class and Virginia-class submarines, two key assets of the U.S. Navy. The company provides fleet services to its submarines around the world, offering modernization, repair and installation services.Huntington has a long-term (three to five years) earnings growth rate of 11.1%. The Zacks Consensus Estimate for HII’s 2025 sales indicates year-over-year growth of 3.7%.BAE Systems BAESY: It plays a vital role in the production of advanced submarines, particularly for the United Kingdom’s defense sector. BAE Systems is the primary manufacturer of the Astute-class nuclear submarines, which are integral to the Royal Navy's fleet.BAE Systems has a long-term earnings growth rate of 11.9%. The Zacks Consensus Estimate for BAESY’s 2025 sales indicates year-over-year growth of 53.7%.Northrop Grumman Corporation NOC: It is a renowned provider of missile launch systems for naval submarines. The company manufactures Launcher Subsystem hardware to support the Columbia and Dreadnought common missile compartment program.Northrop has a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.LMT Stock’s Price MovementShares of Lockheed Martin have gained 6.1% in the past month compared with the industry’s 5.4% growth.Image Source: Zacks Investment ResearchLMT’s Zacks RankLMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): 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