LMT Stock Gains Premarket: Lockheed Martin Reveals New Counter-Drone Weapon, Cheaper Missile Interceptor

The U.S. Department of War awarded Lockheed Martin a $58.62B contract for PAC-3 MSE interceptors, expanding production and jobs. The contract supports the DoW's Acquisition Transformation Strategy and aims to triple capacity by 2030. Lockheed Martin plans to invest $8-9B to modernize facilities and scale munitions output.

Defense Secretary Jim Mattis increased munitions procurement in the Pentagon's FY18 budget request to maximum production rates. The $3.5B allocation includes Hellfire missiles, JDAMs, GMLRS, SDBs, Tomahawks, and APKWS, benefiting Lockheed Martin, Boeing, and Raytheon. The Pentagon aims to replenish stocks used in counter-ISIS operations, with total munitions spending at $16.4B.

Ultra Maritime announced that five new US-specification sonobuoys (Q-53H, Q-62G, Q-101B, Q-125B, Q-36B) are ready for production. The company claims it is the first to offer a complete suite of these anti-submarine warfare technologies. Production is ramping up across US, UK, and Canada facilities, with over 1,000 sonobuoys made daily. Lockheed Martin agreed to acquire Ultra Maritime for $3.45bn, pending approvals.

Jefferies reiterated a Hold rating on Lockheed Martin (LMT) with a $595 price target, citing its undervaluation and growth potential. The F-35 program, a key revenue driver, saw a $51 billion cost increase due to modernization. LMT recently secured multiple defense contracts, including missile defense and F-35 modifications, highlighting its strategic positioning. The company's revenue over the last twelve months was $77 billion, with a PEG ratio of 0.38.

Lockheed Martin (LMT), a $125.7B defense contractor, has outperformed the industrial sector with a 12.6% YTD gain. It raised 2026 revenue and EPS guidance, driven by strong missile sales and a $35B THAAD contract. Its backlog surged 38.3% to $230.4B. Analysts give LMT a 'Moderate Buy' rating with a $636.14 price target.

Lockheed Martin, Raytheon (RTX), and Tata Advanced Systems Limited signed an agreement to co-produce Javelin missiles in India. The deal aims to boost India's defense manufacturing and U.S.-India defense partnership, with production supporting U.S. jobs and Indian workforce development, according to Lockheed Martin.