Lockheed Martin Corporation’s (NYSE:LMT) business unit, Sikorsky, has won a contract valued at $168.2 million from the Naval Air Systems Command, Patuxent River, MD. The contract, expected to be completed by March 2025, involves the procurement of long-lead time materials for full-rate production of 21 CH-53K King Stallion helicopters for the U.S. Marine Corp.
The CH-53K King Stallion helicopter, designed by Sikorsky, represents an advancement in the company’s 50 years of manufacturing and operational success with its predecessors, the CH-53A, CH-53D/G, and CH-53E. Built to thrive on the modern battlefield, including shipboard operations, the CH-53K aircraft is known for its intelligence, reliability, low maintenance, and survivability in austere and remote forward operating bases.
The recent contract win reflects the demand for the CH-53K and contributes to Lockheed Martin’s revenue growth. With over 1,200 test flight hours and achievements in high altitude, hot temperature, and degraded visual environment flights, the CH-53K has demonstrated its capabilities.
The military rotorcraft market is expected to witness significant growth, with Lockheed Martin well-positioned in the military helicopter market, boasting a portfolio that includes programs like Black Hawk, Seahawk, and CH-53K King Stallion. The contract is indicative of Lockheed Martin’s strong standing in the defense industry, and the company is likely to benefit from the expanding military helicopter market. Other defense companies, such as Boeing, Airbus Group, and Textron, may also enjoy the perks of the growing demand for military helicopters.
In the past three months, Lockheed Martin’s shares have risen 4.7%, reflecting positive market sentiment and confidence in the company’s capabilities and contracts.
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