Lockheed Martin Secures Contract to Support Missile Flight Testing

Lockheed Martin Corp.‘s (NYSE:LMT) Space division has recently been awarded a modified contract to provide assistance for missile flight test demonstrations. The contract has been granted by the Strategic Systems Programs based in Washington, D.C.

Contract Details

The contract, valued at $315.9 million, is expected to be finalized by February 25, 2025. Under the terms of this agreement, Lockheed will be responsible for the design, development, construction, and integration of equipment aimed at facilitating missile flight test demonstrations and deployment. The majority of the work associated with this contract will be conducted in Littleton, CO.

Factors Benefitting Lockheed

Heightened geopolitical tensions and global socio-economic instability have led both developed and developing nations to bolster their military capabilities, with missiles playing a significant role in their arsenals.

Lockheed’s Space division not only engages in the creation of satellites and space transportation systems but also specializes in producing strike missiles and missile defense systems. Notable programs include the Trident II D5 Fleet Ballistic Missile, developed in partnership with the U.S. Navy, which stands as the sole submarine-launched intercontinental ballistic missile in current production in the United States. Additionally, the division is behind the Next Generation Interceptor program, a collaboration with the Missile Defense Agency, which employs advanced propulsion and sensors to enhance homeland missile defense capabilities.

As a prominent player in the U.S. missile manufacturing landscape, Lockheed benefits from a robust demand for missile defense solutions. The recent contract win serves as a testament to this demand.

Growth Outlook

According to a report from Mordor Intelligence, the market for missiles and missile defense systems is projected to experience a compound annual growth rate (CAGR) of 4.8% between 2023 and 2028. This expanding market presents favorable prospects for Lockheed, given its strong foothold in the military missile sector.

Other Key Players

Several other leading defense companies poised to capitalize on the growing missile defense market are outlined below:

Northrop Grumman (NYSE:NOC) is a significant contributor to missile systems and counter systems, including strategic deterrents, subsystems, and components. The acquisition of Orbital ATK in 2018 has further solidified Northrop’s position in the missile industry.
RTX Technologies’ (NYSE:RTX) Missiles & Defense division is renowned for its expertise in designing, developing, integrating, producing, and sustaining integrated air and missile defense systems. It participates as a prime contractor or major subcontractor on various missile-related programs with the U.S. Department of Defense.
General Dynamics (NYSE:GD) Ordnance and Tactical Systems unit serves as the system integrator for the 2.75-inch Hydra-70 family of rockets. The company also manufactures composite rocket motor cases and launch tubes for tactical and strategic missiles.