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Lockheed Martin Corp.’s LMT Aeronautics business unit recently secured a modification contract involving its F-35 Lightning II Joint Strike Fighter aircraft program. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $3.37 billion, the contract is expected to be completed by December 2025. Per the terms of the deal, Lockheed will provide continued logistics support for delivered F-35 jets. These logistics support include ground maintenance activities, action request solutions, depot activities, automatic logistics information system operations and maintenance, reliability and maintainability, supply-chain management, pilot training, maintainer training and training system sustainment.
The contract will support the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales customers, and non-Department of Defense (DOD) program partners. A major portion of the work related to this deal will be carried out in Fort Worth, TX.
What’s Favoring LMT Stock?
Rising global defense spending, driven by the need for advanced military capabilities, is boosting the demand for fighter aircraft. Against this backdrop, Lockheed Martin’s F-35 program benefits significantly, with the fifth-generation jet excelling in mission readiness, featuring advanced sensors and secure communication across multiple domains, thereby ensuring strong orders for LMT from the Pentagon and U.S. allies.
Such remarkable features are likely to have been boosting the demand for this jet, which can be further gauged from the fact that Lockheed Martin had delivered 1,040 F-35 airplanes as of Sept. 30, 2024, since its inception. The latest contract win bears yet another testament to the solid demand that the F-35 jets enjoy in the combat jet market.
Growth Prospects for LMT
Escalating military conflicts, terrorism, and border disputes, combined with rapid advancements in combat jet technology, are driving the demand for fighter jets. These aircraft are crucial components of modern defense strategies, prompting nations to boost their defense budgets to procure combat-proven jets that enhance operational readiness and strengthen military capabilities.
This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 3.7% for the global fighter aircraft market during the 2024-2029 period.
Such strong market prospects drive growth opportunities for Lockheed Martin, backed by its robust portfolio of combat jets, including the F-16, F-22 and F-21 aircraft, in addition to the F-35 jet.