Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Lockheed Martin (LMT) Wins $287M Deal For C-130J Aircraft

Published 08/29/2016, 08:51 AM
Updated 07/09/2023, 06:31 AM

Lockheed Martin Corp. (NYSE:LMT) has won a modification contract from the U.S. Air Force for the C-130J type aircraft. The contract is valued at $287.2 million. Contracting activity is the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.

Per the latest modification, Lockheed Martin will manufacture five aircraft in addition to the number of aircraft specified in the base contract.

Work is scheduled to be complete by Apr 30, 2020 and will be performed in Marietta, GA. The contract will use fiscal 2014, 2015 and 2016 Air Force aircraft procurement funds; fiscal 2016 Marine Corps Navy aircraft procurement funds; fiscal 2016 Marine Corps Navy aircraft advance procurement funds; and fiscal 2015 overseas contingency operations funds.

LOCKHEED MARTIN Price

C-130J Super Hercules, the latest model in Lockheed Martin’s Hercules family, is a four-engine, turboprop, military transport aircraft. The Hercules family boasts the longest continuous production run of a military aircraft in history. The C-130J's crew includes just two pilots and one loadmaster as no navigator or flight engineer is required on the aircraft.

The J-model is almost similar to the classic Hercules in terms of general appearance. However, it uses updated technology like the new Rolls-Royce (LON:RR) AE 2100 D3 turboprops with Dowty R391 composite scimitar propellers, digital avionics and reduced crew requirements. These improvements boosted its performance over its C-130E/H predecessors, such as 40% greater range, 21% higher maximum speed and 41% shorter take-off distance.

Meanwhile, the company has also won a modification contract from the U.S. Army to continue offering engineering, materials and equipment, personnel, testing, technical management and logistical support for upgrading close combat tactical trainer systems. Valued at $147.1 million, the contract was awarded by the Army Program Executive Office, Simulation, Training and Instrumentation, Orlando, FL. Work is scheduled to be complete by Sep 28, 2017.

Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.

Lockheed Martin currently has a Zacks Rank #3 (Hold).

Stocks to Consider

A few better-ranked stocks in the aerospace and defense space include Engility Holdings, Inc. (NYSE:EGL) , General Dynamics Corporation (NYSE:GD) and Ducommun Inc. (NYSE:DCO) . While Engility and Ducommun sport a Zacks Rank #1 (Strong Buy), General Dynamics carries a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>



GENL DYNAMICS (GD): Free Stock Analysis Report

LOCKHEED MARTIN (LMT): Free Stock Analysis Report

DUCOMMUN INC DE (DCO): Free Stock Analysis Report

ENGILITY HLDGS (EGL): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.