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

Lockheed Martin Corp.’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 the Lockheed Martin DealValued at $16.3 million, the contract is expected to be completed by January 2029. Per the terms of the deal, Lockheed will provide non-recurring engineering and associated materials support for the redesigned panoramic cockpit display electronic unit video mixer of F-35 jets. The contract will serve the U.S. Navy, Air Force, Marine Corps and non-Department of Defense participants. Work related to this deal will be executed in Fort Worth, TX.What Lies Ahead for LMT Stock?The demand for fighter jets has increased manifold recently, thanks to escalating geopolitical tensions and evolving global security threats. As aerial security remains a critical component of national defense, many nations, especially the developing ones, are significantly boosting their defense arsenals with cutting-edge fighter jets in response to heightened threat scenarios. Technological advancements, particularly in fifth-generation combat jets with advanced sensors, communication systems and multi-domain capabilities, have been further boosting this trend. As global security challenges become increasingly complex, the demand for superior fighter jets is expected to stay strong.This must have prompted the Mordor Intelligence firm to project a 5.2% CAGR in the global military aviation market from 2024 to 2030. Lockheed Martin, with its combat-proven F-35 featuring advanced stealth capabilities, remains well-positioned to capitalize on this market’s immense growth potential.Notably, the F-35 program is widely recognized as the most advanced 5th-generation fighter jet, offering unmatched mission readiness. With cutting-edge sensors and communication systems, the F-35 is designed to operate seamlessly across multiple domains, including air, land, sea, space and cyber.These exceptional features must have been driving significant demand for the F-35 jets. The latest contract win is a bright example of that. This jet program’s demand trend can be further gauged from the fact that since its launch, Lockheed has delivered 1,040 units as of Sept. 29, 2024. We may expect Lockheed to continue to win more such contracts with a varied number of combat-proven aircraft in its product portfolio, including the F-16 Fighting Falcon, C-130J Super Hercules, F-21, F-22 Raptor and a few more lethal fighter aircraft, in addition to F-35 jets.Opportunities for LMT’s PeersOther prominent defense majors that are involved in the manufacturing of military aircraft and thus expected to reap the benefits of the growing military aviation market are discussed below:Northrop Grumman NOC: Its Aeronautics Systems unit designs, develops, produces, integrates, sustains and modernizes advanced military aircraft systems. The company has built some of the world’s most advanced combat aircraft, including the B-2 Spirit stealth bomber jet, E-2D Advanced Hawkeye, A-10 Thunderbolt II, B-21 Raider and others. Looking ahead, the consensus estimate for NOC’s long-term (three-to-five years) earnings growth rate is 19.10%. The consensus mark for NOC’s 2024 sales indicates an improvement of 5.3% from the 2023 reported figure. Airbus Group EADSY: The company’s military aircraft portfolio consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.The Zacks Consensus Estimate for EADSY’s long-term earnings growth rate is 9.2%. The consensus estimate for its 2024 sales suggests an improvement of 5.1% from the 2023 reported figure. Textron TXT: Its Textron Aviation Defense has supported the U.S. Armed Forces for more than 80 years and delivered over 14,500 aircraft to militaries worldwide. This unit’s major programs include the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light attack aircraft.The consensus estimate for TXT’s long-term earnings growth rate is pegged at 10.1%. The consensus mark for 2024 sales indicates an improvement of 1.1% from the 2023 reported figure.LMT Stock Price MovementShares of Lockheed have rallied 15.1% in the past year against the industry’s 6.1% decline.Image Source: Zacks Investment ResearchLMT's Zacks RankLockheed 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Airbus Group (EADSY): 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