Sweden signs HIMARS deal, forges rocket artillery pact with Finland

Lockheed Martin (LMT) secured a $729M deal with Sweden for HIMARS launchers and ammunition, with deliveries starting in 2027. The agreement includes cooperation with Saab for local production. This deal strengthens Lockheed Martin's European defense footprint and aligns with Sweden's efforts to enhance NATO defense capabilities. The order is strategically significant but not expected to materially impact near-term earnings.

Lockheed Martin (LMT) and Raytheon's Javelin Joint Venture signed an MOU with Tata Advanced Systems to co-produce Javelin missiles in India. The agreement aims to establish a final assembly facility and local manufacturing. Lockheed's Alabama plant will continue sub-assembly production. The deal could expand Javelin's market but faces risks like political uncertainty and competition.

Sweden will spend $730M to buy US-made HIMARS rocket artillery from Lockheed Martin, with deliveries starting in 2027. The acquisition aims to enhance long-range capabilities amid Russia fears. Sweden also agreed to deepen cooperation with Finland on rocket artillery systems.

Lockheed Martin Corp received three contract modifications worth over $150 million from the U.S. Department of Defense. The largest, $90.2 million, is for the TRIDENT II Life Extension 2 program, with work spread across multiple locations. The other contracts, $40.1 million and $20.3 million, are for the MK 41 Vertical Launching System and HH-60W repairs, respectively. Completion dates range from 2027 to 2030.

The Pentagon reports that the costs of all three F-35 variants have increased by up to 11 percent. The F-35A's average flyaway cost rose to $92 million, the F-35B to $121.4 million, and the F-35C to $110.8 million. Lockheed Martin attributes the increases to modernization and supply chain issues. The total lifecycle costs of the F-35 program are now projected to be below $2 trillion.

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.