U.S. Army Awards $1.2B to Lockheed Martin for Next-Gen Precision Strike Missile

Lockheed Martin (LMT) secured a contract worth up to $1.2B for its Precision Strike Missile program. Shares are at $535.40, with a 1-year return of 14.33%. Analysts suggest the company may be undervalued, with a fair value estimate of $673.88, citing recent contract wins and strong demand in defense.

The US State Department approved a $24.3B sale of 48 Lockheed Martin F-35 fighters to Saudi Arabia, pending Congress approval. The deal, sought by Saudi Arabia since January 2025, includes engines, equipment, and support from Pratt & Whitney. It marks a policy shift, potentially altering Middle East military balance and requiring Israel to maintain its qualitative edge.

Lockheed Martin (LMT) received a $1.2B IDIQ contract from the U.S. Army for Increment 2 of the Precision Strike Missile, following successful flight tests. The contract covers initial procurement, future orders, and continued development. Work will be performed at Lockheed Martin facilities. The company plans to scale production as the Army proceeds with larger procurements.

Lockheed Martin (LMT) unveiled the AIM-260 JATM missile, a next-gen air-to-air weapon, with a framework agreement for accelerated production. Australia committed $521M. LMT's Missiles and Fire Control segment saw 14% sales growth in 2025, with a $46.65B backlog. The company plans an $8B-$9B munitions production expansion.

Lockheed Martin (LMT) secured a U.S. Army contract worth up to $1.2 billion for precision strike missiles. The deal covers initial procurement, future orders, and ongoing development. Production will begin at Lockheed's facilities, with plans to scale up as the Army increases orders. The missiles completed recent flight tests in March and August.

Lockheed Martin (LMT) secured a $1.2B U.S. Army contract for missile production. The company offers a 2.57% dividend yield, a 50% payout ratio, and a 5.4% 3-year dividend growth rate. GF Value™ suggests LMT is 5.1% undervalued, with a GF Score™ of 80. Institutional investors show confidence, while insiders have sold $4.0M in shares over the past year.