Lockheed Martin (LMT) Gets Another Boost from the Long-Range Missile Push

Australia awarded Lockheed Martin a $1.32B contract for AIR6500, part of a $2.4B investment in air and missile defense. The system integrates sensors, command, and weapons for better coordination, enhancing Australia's defense capabilities in the Indo-Pacific.

The War Department is diversifying its inventory by working with startups and extending agreements with established contractors. Recent multi-year contracts include $22.9 billion with Raytheon for Tomahawk missiles, $1 billion with Northrop Grumman and Lockheed Martin for THAAD components, and $58.62 billion with Lockheed Martin for Patriot Missile Segment Enhancements.

Lockheed Martin delivered a record 191 F-35s in 2025, clearing a backlog but facing ongoing software and supplier issues. The TR-3 upgrade costs rose to $2.01 billion, with delays affecting combat capabilities. A $24 billion contract for 296 aircraft was awarded, but production strains persist, with Lot 18 showing a $1.29 billion schedule variance. Despite challenges, demand remains strong, with 85 U.S. aircraft planned for fiscal 2027.

The Department of War signed seven-year agreements with Lockheed Martin (LMT) and General Dynamics (GD) to boost missile defense production. Lockheed, as the prime contractor, gains multi-year demand visibility for THAAD and PAC-3 MSE. General Dynamics secures a foundation to scale its Ordnance and Tactical Systems unit. Both companies face risks related to execution, funding, and supply chain constraints.

Elroy Air, a developer of autonomous heavy-cargo drones, raised $175M in PIPE financing, including Lockheed Martin Ventures. The funds will support manufacturing and commercial deployment of its Chaparral aircraft. The company plans to go public via a merger with Inflection Point Acquisition Corp. VII (NASDAQ: IPXG). Elroy Air has secured a $46M U.S. Army contract and expanded partnerships with Bristow Group.

Lockheed Martin (LMT) secured a $1.2B contract with the U.S. Army for the production and development of the Precision Strike Missile (PrSM) Increment 2. The contract follows successful flight tests demonstrating the missile's capabilities. Lockheed plans to expand production capacity to meet demand, according to the company.