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Lockheed (LMT) Wins $2B Deal for Black Hawk Helicopters

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Lockheed Martin Corp.’s LMT business unit, Sikorsky Aircraft, recently secured a contract involving UH-60M Black Hawk helicopters. The U.S. Army Contracting Command, Redstone Arsenal, AL.

Valued at $2.28 billion, the contract is expected to get completed by Jun 30, 2027. Per the terms, Lockheed will procure 120 UH-60M Black Hawk helicopters and provide related support for fiscal years 2022-2026, including options for an additional 135 aircraft.

Work related to this deal will be executed in Stratford, CT.

UH-60M Aircraft’s Specifics

The multi-mission UH-60M is the latest in the Black Hawk helicopter family and is more capable, survivable, maintainable, powerful and effective than its predecessors. The UH-60M has additional payload and range, advanced digital avionics, better handling qualities and situational awareness, active vibration control, improved survivability and offers improved performance using high-speed machined parts.

The aircraft is the primary medium-lift helicopter for the U.S. Army, performing a wide range of missions that encompass Air Assault, MEDEVAC, CSAR, Command and Control, and VIP transport. The centerpiece of the UH-60M Black hawk helicopter is an advanced digital avionics suite that provides improved situational awareness and interoperability with the Future Combat System.

Growth Prospects

The United States, the largest exporter of military weaponries worldwide, is also strengthening military resources. This is quite evident from the fiscal 2023 budget proposal worth $773 billion put forward by the Biden administration for the Department of Defense, with $56.5 billion planned investments in combat aircraft. The defense budget request reflects a 4.1% increase from the fiscal 2022 enacted amount.

Such solid budgetary provisions should benefit Lockheed along with other defense manufacturers like Northrop Grumman NOC, Boeing BA and TXT, which also have expertise in manufacturing military aircraft.

Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance, and aircraft self-protection systems. It also enables warfighters to accomplish missions under any conditions.

NOC stock boasts a long-term earnings growth rate of 6.1%. The Zacks Consensus Estimate for 2022 sales implies growth of 2.6% from the 2021 reported figure.

Boeing Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker, and T-7A Red Hawk. This segment also produces rotorcraft and rotary-wing programs such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.

BA stock boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for 2022 sales implies growth of 21.8% from the 2021 reported figure.

Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include Beechcraft T-6C trainer and AT-6 Wolverine.

TXT stock boasts a long-term earnings growth rate of 12.7%. The Zacks Consensus Estimate for 2022 sales implies growth of 8.2% from the 2021 reported figure.

Price Movement

In the past year, shares of Lockheed have gained 12.3% against the industry’s 40.7% decline.

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Zacks Investment Research


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Zacks Rank

Lockheed Martin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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The Boeing Company (BA) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
Textron Inc. (TXT) : Free Stock Analysis Report
 
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