Lockheed's Arm Secures a $114M Contract to Support Sonar Systems

Lockheed Martin Corporation’s LMT unit, Rotary and Mission Systems, recently clinched a modification contract to procure hardware for supporting the U.S. Navy’s sound navigation and ranging (Sonar) systems. The award has been offered by the Naval Sea Systems Command, Washington, D.C.Valued at $114.2 million, the contract is expected to be completed by May 2031. The majority of the work related to this deal will be executed in Manassas, VA, and Clearwater, FL.LMT Stock’s Growth ProspectsWith the rapid rise of geopolitical tensions in recent years, governments worldwide have increased their investments in military arsenals, including sonars. This demand is fueled by the need for high-resolution seabed mapping, enhanced underwater surveillance and next-generation sonar-equipped vessels.This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 4.4% for the global sonar systems market during the 2025-2030 time period.This is likely to benefit Lockheed, a key player in sonar technology, providing advanced systems for the U.S. Navy and allied forces. As an industry forerunner in anti-submarine warfare solutions, the company supplies sonar for submarines and surface ships, ensuring enhanced underwater surveillance. With decades of expertise, it continues to secure contracts for next-generation sonar upgrades. The latest contract win is a prime example.Opportunities for Other Defense PlayersOther defense companies that are likely to enjoy the perks of the expanding global sonar systems market have been discussed below:RTX Corporation RTX: Through its Raytheon unit, the company develops advanced sonar systems for naval applications, including the AN/AQS-20C mine-hunting sonar suite and the AN/ASQ-235 Airborne Mine Neutralization System.RTX has a long-term (three to five years) earnings growth rate of 9.7%. The Zacks Consensus Estimate for RTX’s 2025 sales indicates year-over-year growth of 4.4%.Northrop Grumman Corporation NOC: It provides integrated sonar solutions for submarines and surface ships, enhancing anti-submarine warfare capabilities. It also provides a high-performance minehunting system AQS-24B/C, which offers significantly improved image resolution and real-time sonar processing.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 3.2%.General Dynamics GD: Through its subsidiary, General Dynamics Mission Systems, the company provides advanced sonar and undersea systems for Virginia-class, Ohio-class and Columbia-class submarines.GD has a long-term earnings growth rate of 10.7%. The Zacks Consensus Estimate for GD’s 2025 sales indicates year-over-year growth of 5.6%.LMT Stock’s Price MovementShares of Lockheed have gained 8.1% in the past year against the industry’s 0.4% decline.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 General Dynamics Corporation (GD): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks