Lockheed Martin(US:LMT) ZACKSยท2025-01-16 12:11Core Viewpoint - Lockheed Martin Corporation's unit, Rotary and Mission Systems, has secured a $19 million modification contract to support the MH-60S aircraft program, expected to be completed by March 2028 [1][2]. Summary by Sections Contract Details - The contract includes the provision of two initial structural modification kits for the MH-60S aircraft, non-recurring engineering support, and components that are not expected to meet the current service life [2]. - The work will be executed in Stratford, CT, and Owego, NY [2]. Market Opportunities - Rising military conflicts, terrorism, and border disputes, along with rapid technological advancements in combat aircraft, are driving nations to increase defense spending [3]. - Mordor Intelligence forecasts a compound annual growth rate of 5.2% for the global military aviation market from 2024 to 2030 [3]. Lockheed Martin's Position - Lockheed Martin's robust portfolio of combat jets, including the F-16, F-22, F-21, and MH-60S, positions the company well for growth [4]. - As of September 29, 2024, Lockheed's total backlog was $165.69 billion [4]. Other Defense Stocks - Northrop Grumman Corporation (NOC) has a long-term earnings growth rate of 19% and a projected sales growth of 3.4% for 2025 [5][6]. - Embraer (ERJ) is expected to see an 18.3% sales growth in 2025, with a recent average earnings surprise of 127.28% [6][7]. - Boeing Company (BA) has a long-term earnings growth rate of 19.3% and a projected sales improvement of 22.1% for 2025 [8]. Stock Performance - Lockheed Martin's shares have increased by 2.9% over the past six months, contrasting with a 1.7% decline in the industry [9].