Lockheed Wins a $123M Contract to Aid JASSM & LRASM Missile Program

Core Insights - Lockheed Martin Corporation (LMT) has secured a contract worth $122.6 million for tooling and test equipment to enhance production of Joint Air-to-Surface Standoff Missile (JASSM) and Long-Range Anti-Ship Missile (LRASM) programs, with completion expected by July 14, 2028 [1] - The JASSM missile provides long-range precision engagement capabilities for air-to-ground missions, allowing for the destruction of high-value targets from a safe distance [2] - The LRASM is designed for precision-guided anti-ship capabilities, enabling semi-autonomous navigation to targets while maintaining a safe standoff range [3] Market Growth Prospects - Increased military conflicts and national security focus have led to a projected compound annual growth rate of 5% for the global missiles and missile defense systems market from 2025 to 2030 [4] - Lockheed's Missile and Fire Control unit is a recognized developer in this sector, operating in over 50 countries and involved in major programs like the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense [5] Competitor Analysis - Northrop Grumman Corporation (NOC) is also positioned to benefit from the expanding missile market, with a long-term earnings growth rate of 4.2% and a projected 3% sales growth in 2025 [6][7] - RTX Corporation (RTX) has a long-term earnings growth rate of 9.7% and is expected to see a 4.4% sales growth in 2025, focusing on missile defense systems [8] - The Boeing Company (BA) has a strong long-term earnings growth rate of 17.4% and is projected to achieve a significant 25.6% sales growth in 2025 [9][10] Stock Performance - LMT shares have increased by 8.8% over the past month, outperforming the industry average growth of 0.7% [11]