Lockheed Martin Secures $622 Million Contract for F-35 Fighter Aircraft 


Lockheed Martin Corp. (NYSE:LMT) has recently been awarded a contract valued at $622.4 million to provide program management, non-recurring unique requirements, and training for the integration efforts of the F-35 Joint Strike Fighter program. The contract pertains to support for the government of Germany through Foreign Military Sales. This contract has been granted by the Naval Air Systems Command located in Patuxent River, MD. The project is anticipated to reach completion by December 2027, with the primary operations conducted in Fort Worth, TX. 

Factors in Favor of Lockheed Martin 

Lockheed Martin holds a significant presence in the global military aircraft sector, primarily attributed to its F-35 Lightning II fleet. This advanced and versatile jet is sought after for its capabilities in air warfare, ground attack, and reconnaissance, driving consistent global demand. The recent contract win is a clear reflection of this demand. The F-35 Lightning II fleet plays a pivotal role in Lockheed’s Aeronautics business segment due to its strong demand. 

The company’s deliveries demonstrate this demand, with 45 aircraft delivered in the second quarter of 2023 and a backlog of 421 aircraft by the end of the quarter. Lockheed Martin’s commitment to enhancing the F-35 model to align with evolving military requirements positions the company for a steady influx of orders, as demonstrated by this recent contract. The company’s outlook indicates a delivery range of 100 to 120 aircraft in 2023, further bolstering its future revenues. 

Comparative Outlook 

According to a report by Coherent Market Insights, the global military aircraft market is projected to achieve a CAGR of 5.4% from 2022 to 2030. This bodes well for Lockheed Martin, which holds a dominant market position with its combat-proven aircraft portfolio, including the F-16 and F-35 Fighter Aircraft. Other defense firms poised to benefit from the expanding military aircraft market include: 

Boeing (NYSE:BA): Renowned for aircraft manufacturing, Boeing’s prominence extends to the combat aircraft sector. The company specializes in various defense aircraft, jet components, repairs, modifications, and military aircraft like C-17 Globemaster III, P-8A Poseidon, and V-22 Osprey. Boeing boasts a long-term earnings growth rate of 4% and has recorded a 37.8% gain for investors in the past year.

Airbus Group (OTCMKTS:EADSY): The company’s military aircraft offerings encompass the A400M, C295 tactical transporter, A330 Multi Role Tanker Transport, and Eurofighter—an advanced swing-role fighter. Airbus maintains a projected long-term earnings growth rate of 12.4%. Over the past year, EADSY shares have delivered a 29.7% return to investors.

Textron (NYSE:TXT): Textron’s military aircraft lineup includes the Beechcraft T-6 training aircraft, Beechcraft AT-6 light-attack aircraft, Beechcraft Model 18 light bomber, T-44 and T-34 training aircraft, and T-1A jet trainer. Textron showcases a projected long-term earnings growth rate of 11.7%. Over the past year, TXT stock has appreciated by 13.1%. Stock Performance Over the past year, Lockheed Martin’s shares have witnessed a 1.5% increase, in contrast to the industry’s decline of 8.3%.

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