Yahoo Finance Lockheed (LMT) Clinches $215M Deal to Support AEGIS System
Lockheed Martin Corp. LMT secured a contract involving AEGIS system. The award was offered by the Naval Sea Systems Command, Washington, DC.
Details of the Deal
Valued at $214.5 million, the contract is projected to be completed by December 2023. Per the terms of the deal, Lockheed will offer multi-national, early-start engineering efforts for current and future International Partner ships operating AEGIS. The efforts include planning and advance studies, requirements development, and performance assessment of the planned modernization and new combat system capabilities selection.
Work related to the deal will be carried out in Moorestown, NJ. The contract involves Foreign Military Sales to Canada and other countries.
Importance of AEGIS
The Aegis Combat System is the U.S. Navy’s most modern surface combat system. It has been designed as a complete system, most suitable for military missions, and includes the missile launching element, the computer programs, the radar and the displays that are fully integrated to work together.
Due to its remarkable features that are well-suited for any military mission, Lockheed Martin continues to witness a steady inflow of orders involving this combat system. The latest contract win is a testament to the same. This, in turn, should bolster LMT’s revenues from the combat system.
Growth Prospects
The Russia-Ukraine warfare has led many nations to increase their defense spending for strengthening their security. With defense arsenals and ammunitions forming an integral part of an efficient combat system, defense products have been witnessing a surge in demand lately. In this context, the demand for an efficient security system, which can strengthen naval sea warfare capabilities, may also increase in the future.
Per Mordor Intelligence projections, the global naval combat system market is expected to witness a CAGR of 2.5% over the 2022-2027 period. Such projections further exemplify immense opportunities for Lockheed Martin to capitalize on the expanding market with its state-of-the-art combat system.
Such abounding growth projections will also benefit prominent defense majors like Raytheon Technologies RTX, BAE Systems BAESY and Elbit Systems ESLT, as these stocks have immense presence in the naval combat space.
Raytheon Technologies’ Missiles & Defense unit provides an integrated portfolio of solutions in naval warfare, ranging from sensors to command and control systems to precision weapons. It serves as the prime mission systems equipment integrator for all electronic and combat systems for the DDG 1000 program — America’s next-generation combat ship.
Raytheon provides a ship with a computing environment, electronic modular enclosures, an integrated undersea warfare system, an MK57 vertical launching system, an advanced gun system and an integrated power system.
BAE Systems designs and manufactures naval ships and submarines, as well as state-of-the-art combat systems and equipment. Its INTeACT combat management systems provide mission-critical capabilities and a vital defense advantage.
INTeACT provides warship crews with all the information they need to track, analyze and respond to threats in combat. It also arms them the ability to co-ordinate resources in other operations such as intelligence gathering and humanitarian assistance, both independently or as part of multinational coalitions.
Elbit Systems has more than three decades of experience in the design and development of high-performance naval combat systems, including shipboard combat management systems. This assures information dominance over potential enemies, supporting a Common Tactical Picture, shortening decision cycles and executing rapid, accurate weapon engagement.
Its submarine, ELINT systems, can detect and recognize threats under dense electromagnetic conditions. These systems are currently installed on the Israel Navy Dolphin class submarines and are on-board submarines of several other navies worldwide.
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