Lockheed's Unit Secures a Contract to Aid Integrated Combat System

Lockheed Martin Corporation’s LMT business unit, Rotary and Mission Systems, recently clinched a modification contract involving the Integrated Combat System (ICS). The award has been provided by the Naval Sea Systems Command, Washington, D.C.Details of LMT’s DealValued at $35.4 million, the contract is expected to be completed by September 2025. Per the terms of the deal, Lockheed will provide items supporting Systems Engineering and Software Integration (SE/SI) for the Integrated Combat System across the surface force portfolio of the Navy and Coast Guard.The majority of the work related to this deal will be executed in Moorestown, NJ, and Columbia, MD.Significance of LMT’s Integrated Combat SystemLMT’s ICS is a modern naval combat management system that connects sensors, networks and weapons across a distributed naval force afloat and ashore. It is designed to be flexible and easily upgraded, using shared software and technology to quickly add new capabilities to the surface fleet. ICS helps different forces work together in real time, improving defense and mission success.Such notable features must have been enabling Lockheed to secure contracts for these systems from the Pentagon and other U.S. allies, the latest contract being a bright example of that.Growth Prospects for LMTRising military conflicts, terrorism and border disputes, along with rapid technological advancements, have driven nations to enhance their naval defense capabilities, making naval combat systems a critical part of their defensive strategies. Fleet modernization programs by armed forces worldwide have also significantly increased the demand for new naval vessels equipped with advanced technologies.This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of more than 2.5% for the global naval combat systems market during the 2025-2030 period. Such strong market prospects drive growth opportunities for Lockheed, which offers state-of-the-art naval combat systems in addition to ICS.Notably, LMT’s Aegis Combat System, a type or ICS, is an advanced naval defense system that combines sensors, weapons and command controls to detect and respond to threats. Moreover, the company is currently working with the U.S. Navy and other partners to deliver software updates to the fleet in real-time, with the help of technologically advanced system engineering and software integration.Opportunities for Other Defense StocksOther defense companies that are likely to benefit from the expanding global naval combat systems market are discussed below:RTX Corporation RTX: It provides advanced electronic and combat systems for the DDG 1000 warship program. Its offerings include a computing environment, modular enclosures, undersea warfare systems, vertical launching systems, advanced guns and integrated power systems.RTX’s long-term (three to five years) earnings growth rate is 9.7%. The Zacks Consensus Estimate for RTX’s 2025 sales indicates year-over-year growth of 4.4%.Huntington Ingalls Industries HII: Through its Ingalls Shipbuilding segment, the company has been designing and building amphibious ships, guided missile destroyers and national security cutters for more than 85 years.HII has a long-term earnings growth rate of 11.1%. The Zacks Consensus Estimate for HII’s 2025 sales indicates year-over-year growth of 3.7%.Northrop Grumman Corporation NOC: Northrop delivers products like AQS-24B/C Minehunting, Surface Electronic Warfare Improvement Program Block III and other navigation systems used in naval combat.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 LMT have risen 7.6% in the past month compared with the industry’s 1.8% 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report RTX Corporation (RTX): 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