UK Ministry of Defence yet to finalize £2.4 billion Skynet satellite contract, recommendation favors Lockheed Martin
The UK Ministry of Defence said no final decision has been made on the £2.4 billion Skynet Wideband Satellite System contract, although a MoD recommendation to award the work to Lockheed Martin was reported. The contract would replace and expand the military communications constellation and is expected to be decided by Prime Minister Andy Burnham within two weeks. Airbus Defence and Space, the incumbent contractor, warned that losing the award could jeopardise up to 3,000 UK jobs at its Stevenage and Portsmouth sites, while Lockheed Martin pledged to build a new manufacturing hub in Durham.
Why it matters
The final award will determine which company secures a multi‑year, multi‑billion‑dollar defence programme, shaping revenue and order flow for the winner. For Airbus, the outcome could mean the loss of up to 3,000 jobs in the UK, while Lockheed Martin could gain a new domestic production base and associated revenue.
Key facts
- 1The contract value is £2.4 billion ($3.2 billion). breakingdefense.com
- 2The Ministry of Defence has not made a final decision on the award. breakingdefense.com
- 3The MoD recommended selecting Lockheed Martin over Airbus for the contract. satnews.com
- 4Prime Minister Andy Burnham will decide within two weeks. satnews.com
- 5Airbus currently builds satellites at sites in Stevenage and Portsmouth. breakingdefense.com
- 6Airbus warned that losing the contract could affect up to 3,000 UK jobs. satnews.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.