Lockheed Martin Corp. (NYSE:LMT)
Lockheed Martin stock slips after Rotary and Mission Systems, a division of Lockheed Martin Corp. (NYSE:LMT), recently won a contract to change the Apache helicopter. The U.S. Army Contracting Command in Redstone Arsenal, Alabama, has extended the offer.
The deal’s completion is set for Oct. 31, 2023, and it’s worth $13 million. Lockheed Martin stock will update the software of the Apache updated radar frequency interferometer sensors system and provide assistance and non-recurring engineering designs as part of the agreement.
The Role of Apache Helicopters
The AH-64 Apache is a twin-turboshaft attack helicopter developed in the United States. It uses a tailwheel system for landing and has a tandem cockpit for two pilots. It has an array of sensors in the nose for locating targets and seeing in the dark. The stealth chopper’s flexible, multi-role design allows the military to successfully execute aerial operations.
Lockheed Martin Corp. (NYSE:LMT), which supplies this stealth helicopter’s electro-optical sensors and radar technologies, may continue to see an upward demand for the product due to its exceptional qualities. That was proven with the most recent contract win.
Prospects for Expansion
Defense systems worldwide are undergoing a period of modernization as outdated defense goods are being phased out and newer ones introduced. Modernized and state-of-the-art military hardware can protect nations from surprise attacks and prevent potentially violent conflict.
As a result, there will probably rising demand for a highly effective military helicopter that can counteract any type of aerial military danger.
Mordor Intelligence predicts that between 2022 and 2031, the global market for military helicopters will expand at a CAGR of more than 4%. Such forecasts demonstrate significant openings for defense industry heavyweights to profit from the market’s projected expansion.
Compared to the industry’s drop of 37.3% over the past year, Lockheed Martin stock’s 16.9% growth stands out as particularly impressive.
Lockheed’s stock fell after the company was awarded a contract to upgrade the Apache helicopter for the United States Army.
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