Anti-submarine systems
The largest contract, valued at $78.4 million, is primarily aimed at expanding and modifying an existing contract to finance Hypervisor Technology Zero combat systems, which are inherently specialized in detecting and subsequently eliminating enemy underwater vessels. The deadline for the completion of this project is currently set for February 2028. The details of the contract also reveal where the actual implementation will take place. The largest representation was in Manassas, Virginia, but there are also various other locations in the United States, including the Lemont Furnace in Pennsylvania and Syracuse in New York.
Testing and development
The second in line is a $13.1 million contract, focusing on test procedures, test net sequences and master test plans for cruise missile systems. Although this contract does not break any records, its importance for the company as a whole is unquestionable. Testing new technologies has the potential to improve the accuracy and efficiency of cruise missiles. In this case, too, the completion date is set again, specifically for June 2026, as well as several cities that will be incorporated into the project, led by New Jersey.
Production of control modules and systems
The last of the trio is a $9.9 million contract for the production of MK 41 Vertical Launching System (VLS) modules and related equipment. The realizations will take place mainly in Mooresttown, New Jersey, and also Indianapolis, Indiana. As part of the intrinsic value for Lockheed Martin, this is a key advance in the development of modern Navy missile and launch systems. The end date extends to November 2029, which means that the United States has a chance to support and improve its military capabilities in the long term, which are extremely important in today's times, heavily marked by geopolitical tensions.
Stability and trust
By winning the above-mentioned contracts, Lockheed Martin, one of the leaders in the arms sector, underlines its strong position. Contracts not only ensure long-term and stable income for the company, but also open up the potential for further technological innovations. Last but not least, it is also necessary to highlight the situation with the company's shares itself. Their price is currently in a correction from the absolute peak by 25%, which with such strong fundamental parameters as government contracts, represents the potential for buying at a discounted valuation, while the return of the price to this absolute maximum would represent an appreciation of the investor's investment by more than 30%.[1]
Source: Trading Economics *
* Historical figures are not a guarantee of future returns.
[1] Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which is subject to change. These statements do not guarantee future performance. Forward-looking statements involve risk and uncertainty by their nature because they relate to future events and circumstances that cannot be foreseen, and actual developments and results may differ materially from those expressed or implied in any forward-looking statements.
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