Lockheed Wins a $123M Contract to Aid JASSM & LRASM Missile Program

Lockheed Martin Corporation LMT recently secured a contract valued at $122.6 million for the procurement of tooling and test equipment needed to increase production quantities of Joint Air-to-Surface Standoff Missile (JASSM) and Long-Range Anti-Ship Missile (LRASM) programs. The award has been provided by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.

The work related to this deal will be carried out in Orlando, FL, and is projected to be completed by July 14, 2028.

Significance of LMT’s JASSM and LRASM Missiles

Lockheed’s JASSM provides continued significant long-range, precision engagement capabilities for air-to-ground missions. This weapon system can destroy high-value, well-defended, fixed and relocatable targets from significant standoff range, keeping the aircrew well out of danger from hostile air defense systems without compromising lethality.

On the other hand, LRASM is a precision-guided intelligent anti-ship missile designed to prevent a variety of surface threats at very long ranges. It can navigate semi-autonomously to a target and deliver a precise payload from a safe standoff range.

Such notable features must have been enabling Lockheed to secure contracts for these missiles from the Pentagon and other U.S. allies, the latest contract being an example of that.

LMT’s Growth Prospects

Rising military conflicts, terrorism and border disputes have led nations to increase their focus on national security, particularly on missile defense systems, backed by the rapid development of advanced missile technologies over the last decade.

This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 5% for the global missiles and missile defense systems market during the 2025-2030 time period.

Such market projections offer solid growth opportunities for Lockheed, with its Missile and Fire Control unit being a recognized developer of high-performance missiles. The unit pursues business in more than 50 countries worldwide. Some of its major programs are the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense (air and missile defense programs, in addition to the JASSM and LRASM.

Prospects of LMT’s Peers

Other defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below.

Northrop Grumman Corporation NOC: Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.

The company’s long-term (three to five years) earnings growth rate is 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.

RTX Corporation RTX: It is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.

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%.

The Boeing Company BA: It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built and supported air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.

The company has a long-term earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 25.6%.

LMT Stock’s Price Movement

Shares of LMT have gained 8.8% in the past month compared with the industry’s 0.7% growth.

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LMT’s Zacks Rank

LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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