Lockheed Clinches a $4.9B Contract for Precision Strike Missile

Core Viewpoint - Lockheed Martin Corp. has secured a significant contract valued at $4.94 billion for the production of the Precision Strike Missile (PrSM) Increment One, expected to be completed by March 30, 2030 [1]. Group 1: Lockheed Martin's Precision Strike Missile - The PrSM is a long-range missile designed for the U.S. Army, capable of neutralizing targets beyond 499 kilometers, enhancing the capabilities for attacking and destroying targets [2]. - The demand for the PrSM is likely boosted by its notable features, as evidenced by the recent contract win [3]. Group 2: Growth Prospects for Lockheed Martin - The rise in military conflicts and national security focus has led to increased investments in missile defense systems, with a forecasted compound annual growth rate of 5% for the global missiles and missile defense systems market from 2025 to 2030 [4]. - Lockheed Martin's Missile and Fire Control unit is a recognized developer of high-performance missiles, operating in over 50 countries, with major programs including the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense [5]. Group 3: Prospects of Lockheed Martin's Peers - Northrop Grumman Corporation offers high-speed, long-range strike weapons and has a long-term earnings growth rate of 4.2%, with a projected 3% year-over-year sales growth for 2025 [6][7]. - RTX Corporation is known for its missile defense systems and has a long-term earnings growth rate of 9.7%, with a projected 4.4% year-over-year sales growth for 2025 [8]. - Boeing has a long-term earnings growth rate of 17.4%, with a significant projected year-over-year sales growth of 25.7% for 2025 [9]. Group 4: Stock Performance - Lockheed Martin's shares have decreased by 1.2% over the past month, contrasting with the industry's growth of 0.8% [10].