One of Lockheed Martin’s (NYSE:LMT) four major business units, the Rotary and Mission Systems (LM RMS), secured a $139.65 million award from the U.S. Naval Sea Systems Command. Additionally, LM RMS also received a $130.74 million award to continue a previous contract for the AEGIS Weapon System.
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Under the $139.65 million award, LM RMS will be supporting AEGIS combat system configurations with its engineering, software development, maintenance integration, logistics, and fielding expertise. This contract, which is expected to be completed by December this year, has the scope of exercising additional work options that can bring the cumulative value of this contract to $852.98 million.
Meanwhile, the modification of the existing contract (N00024-13-C-5116) with the Navy, worth $130.74 million, includes the continued provision of engineering, development, and delivery support for AEGIS Weapon System capabilities for FFG 62 and Coast Guard OPC3 Athena. This work is likely to be completed by March 2025.
These awards come on the heels of a major $7.84 billion modification to an existing aircraft procurement contract with the U.S. Navy.
Is LMT a Good Stock to Buy?
Wall Street is waiting on the sidelines with LMT stock. The consensus rating on the stock is a Hold, based on four Buys, nine Holds, and two Sells. The average price target of $490.5 indicates an upside of 2.82% from the current price.
