Lockheed Martin Corp. (NYSE:LMT) has won a contract for F-35 fighter jet modification. The award was presented by the Naval Air Systems Command at Patuxent River, Maryland.

The contract, worth $70.3 million, is expected to be finished by April 2027. This current revision necessitates Lockheed doing maintenance and sustainment activities on the buildings and systems of the Norway and Italy Reprogramming Laboratories. These activities will support the F-35 jet program with consumables and spare material/tooling.

The deal will benefit individuals who are not members of the United States Department of Defense. The majority of the work associated with this transaction will be completed in Elgin, FL.

The Significance of the F-35 for LMT

With its F-35 fleet, Lockheed Martin holds a commanding position in the worldwide military aircraft market. The stealth aircraft has attributes that make it an excellent choice for many countries. The company’s ongoing attempts to update and enhance the aircraft utilizing innovative technology to meet current military needs greatly increase demand.

The F-35 program continued to be the Aeronautics business unit’s greatest income producer. In addition, it will account for 66% of the segment’s net sales in 2022.

Lockheed has delivered 894 F-35 fighters since the program’s beginning, with 345 planes still on order through December 2022. This, together with the most recent contract victory, raises sales estimates for the aforementioned segment.

LMT anticipates delivering 147-153 jets per year in 2023 and 2024, increasing to 156 jets in 2025 and beyond. This should increase the company’s revenue from military planes.

Prospects for Growth

According to Mordor Intelligence, the global military aircraft market would grow at a CAGR of more than 4% between 2022 and 2031. Such estimates point to enormous prospects for Lockheed to capitalize on the growing military aircraft industry.

Northrop Grumman (NYSE:NOC), Airbus Group (NYSE:EADSY), and Textron (NYSE:TXT) are three more notable defense companies involved in the production of military aircraft. These stocks are likewise likely to benefit from the growing potential in the aforementioned area.

Northrop Grumman has been a pioneer in the development of manned aircraft since its start. It has provided manned solutions to customers all throughout the world, from fighter jets and stealth bombers to surveillance and electronic warfare. The business has produced some of the most advanced aircraft in the world, including the groundbreaking B-2 Spirit stealth bomber and the game-changing E-2D Advanced Hawkeye.

Its Aeronautics Systems division is responsible for the design, development, manufacturing, integration, maintenance, and upgrading of advanced aviation systems. In contrast, the Mission Systems segment provides advanced mission solutions and multifunction systems such as Airborne Early Warning & Control, LONGBOW Fire Control Radar, and Scalable Agile Beam Radar.

The military aircraft of the Airbus Group include the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport, and the Eurofighter, the most modern swing-role fighter ever designed.

For more than 40 years, the company has provided an extensive portfolio of services to its aircraft customers, ranging from flight and ground staff training to live shooting exercises anywhere in the world.

The Beechcraft T-6 training aircraft and the Beechcraft AT-6 light attack aircraft are among Textron’s military aircraft. The Beechcraft Model 18 light bomber, the T-44 and T-34 teaching aircraft, and the T-1A jet trainer are also produced by the company.

Able Aerospace Services, a subsidiary, provides component and maintenance, repair, and overhaul services for commercial and military fixed and rotor-wing aircraft.

Price Change

Lockheed shares have risen 6.2% in the last year, outperforming the industry’s 2.4% fall.

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