Lockheed Martin Corp.’s (NYSE:LMT) business unit, Sikorsky, has secured a significant contract from the Naval Air Systems Command in Patuxent River, MD, for the CH-53K helicopter program. Valued at $79.7 million, the contract is set to be completed by December 2028.
Under the terms of the deal, Lockheed will deliver updated logistics analysis and products to support configuration changes on the CH-53K helicopter. Additionally, the contract includes the development and delivery of new intermediate and depot component repair capability, along with analysis, products, and services related to gearboxes, the Air Data Computer, and aircraft hoses and tubes.
The majority of the work related to this contract will be conducted in Stratford, CT.
The CH-53K King Stallion, developed by Sikorsky, represents a significant advancement with a legacy spanning 50 years, including the CH-53A, CH-53D/G, and CH-53E predecessors. Designed for modern battlefield conditions, shipboard operations, and remote forward operating bases, the CH-53K is characterized by its intelligence, reliability, low maintenance, and survivability.
The helicopter has undergone more than 1,200 test flight hours, achieving milestones in high altitude, hot temperature, and degraded visual environment flights in 2018.
The demand for the CH-53K, driven by its remarkable features, has led to contract flows for Lockheed Martin. These contract wins are expected to contribute to Lockheed’s revenues in the coming quarters.
Lockheed’s strong position in the military helicopter market, with programs like Black Hawk, Seahawk, and CH-53K King Stallion heavy-lift helicopters, aligns well with the rising global demand for military rotorcraft. Geopolitical tensions and increased defense spending worldwide are expected to drive the military rotorcraft market, with a projected Compound Annual Growth Rate (CAGR) of more than 4% from 2023 to 2028, according to a report from Mordor Intelligence. This positions Lockheed to benefit significantly from the growing market for military helicopters.
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