Lockheed Secures Contract for F-35 Joint Strike Fighter Jet Program

Lockheed Martin Corporation’s LMT Aeronautics business segment recently clinched a modification contract to support the F-35 Joint Strike Fighter aircraft program. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.Details of LMT’s Deal Valued at nearly $28 million, the contract is expected to be completed by December 2028. Per the terms of the deal, Lockheed will provide program management support for special test and tooling equipment, aircraft modifications and flight test instrumentation to aid the F-35 Joint Strike Fighter aircraft.The contract will serve the U.S. Navy, Air Force, Marine Corps, Foreign Military Sales customers and non-Department of Defense participants. The work related to this deal will be executed in Fort Worth, TX.What’s Favoring LMT Stock? Aerial security, a critical component of national defense, has seen an increased emphasis on purchasing technologically advanced fighter jets with improved stealth capabilities, such as Lockheed Martin's F-35.Notably, the F-35's cutting-edge sensors and communication technologies enable it to operate smoothly across multiple fields, including air, land, sea, space and ground-based platforms.These features must have been driving strong demand for F-35 jets, which can be further gauged from the fact that since its launch, Lockheed has delivered 1,102 units as of Dec. 31, 2024. The latest contract win is another bright example of LMT’s F-35 enjoying significant demand in the military aviation space.LMT’s Growth Potential Rising 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, backed by its robust portfolio of combat jets, including F-21, F-2 Support Fighter, F-16 Fighting Falcon, F-22 Raptor and F-35 jets.Opportunities for Other Defense Companies Other defense companies that are likely to reap the benefits of the military aviation market are listed below:Northrop Grumman Corp. NOC: It is a leading provider of manned and unmanned 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 a few 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 calls for an improvement of 3.2% from the prior-year reported number.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 suggests an improvement of 25.4% from the prior-year reported number.Embraer S.A. ERJ: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano, P600 AEW&C and the C-390 Millennium military multi-mission aircraft.The Zacks Consensus Estimate for ERJ’s 2025 sales indicates growth of 17.8% from the prior-year estimated number. The company delivered an average earnings surprise of 127.28% in the last four quarters.LMT Stock Price Movement In the past year, Lockheed shares have fallen 0.3% compared with the industry’s decline of 4.8%.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.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks