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Lockheed Martin Corp. LMT recently won a contract to upgrade the baseline weapon systems of a handful of missiles by providing engineering services, technological demonstrations, and design and development studies. These missiles included in the contract are Hellfire, Long Range Anti-Ship Missile, Joint Air to Ground Missile and Joint Air to Surface Standoff Missile.
Details of LMT’s Deal
Valued at $99.6 million, the contract is expected to be completed by February 2030. The work related to this contract will be executed in Orlando, FL. The deal has been given by the Naval Air Warfare Center Weapons Division, China Lake, CA.
The deal also includes offering assistance for integrating the aforementioned armaments into tactical aircraft platforms for the U.S. Navy.
What Lies Ahead for Lockheed?
Rapidly increasing geopolitical tensions worldwide and heightened regional conflicts in different parts of the globe have prompted nations to bolster their defense capabilities over the last decade. Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily in advanced missile systems for deterrence and defense.
This is likely to have led the Mordor Intelligence firm to predict that the global missile and missile defense systems market will witness a CAGR of 5% during the 2025-2030 period. Such growth opportunities offered by the missile and missile defense systems market should bode well for Lockheed Martin, with its product portfolio consisting of numerous combat-proven missiles and missile systems.
This defense contractor’s Missiles and Fire Control unit is a recognized developer of high-performance missiles. The unit pursues business in more than 50 nations globally. Some of its major products are the Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area Defense, Spike NLOS, Guided MLRS and Precision Strike Missile.
Prospects for LMT’s Peers
Other defense companies that are likely to enjoy the perks of the expanding global missile and missile defense systems market have been discussed below:
The Boeing Company BA: For almost 25 years, the company has been providing air and missile defense systems to the United States, its allies and international partners. Its offerings include the Avenger Air Defense System, Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
Boeing boasts a long-term (three to five years) earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales implies growth of 25.6% from the 2024 reported figure.
Northrop Grumman NOC: The company provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and manufactures warheads, fuses, advanced high-speed propulsion systems and other missile components.
Northrop has a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales suggests growth of 3.2% from the prior-year reported figure.
RTX Corporation RTX: It is known for its missile defense systems, such as the Patriot and SM-6, which are in high demand globally. The company also has a handful of combat-proven missiles in its product portfolio, such as the TOW missile, Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Tomahawk and Standard Missile 2.
The company’s long-term earnings growth rate is 9.7%. The Zacks Consensus Estimate for RTX’s 2025 sales indicates year-over-year growth of 4.4% from the 2024 reported figure.