Lockheed Martin (LMT) Wins $332M FMS Contract For GMLRS

Lockheed Martin Corp.’s (NYSE:LMT) Missiles and Fire Control division has won a foreign military sales (FMS) contract from the U.S. Army for international allies, Israel, Finland, Jordan and Singapore. The contract is valued at $331.8 million.

Per the contract, Lockheed Martin will deliver Guided Multiple Launch Rocket System (“GMLRS”) alternative warhead rocket pods (290 units), 34 unitary rocket pods, and 529 reduced range practice rocket pods to the above mentioned international partners.

The GMLRS provides dependable precision strike and exceeds operational-readiness requirements. Irrespective of weather, the long-range rocket delivers precision strike beyond the range of most conventional weapons. The alternative warhead is designed to engage the same target set and achieve the same area-effects requirement as the old MLRS submunition warheads, but without the lingering danger of unexploded ordnance.

Work will be carried out at Grand Prairie, TX and Camden, AR. So far, more than 25,000 GMLRS rockets have already been produced at Camden in support of U.S. and allied military operations.

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.

The company’s Missiles and Fire Control division saw its sales rise 3.7% year over year to $1.4 billion in the first quarter of 2016. The increase reflects higher net sales from tactical missile and fire control programs.

Lockheed Martin continues to witness robust demand in the international market. In particular, missile defense continues to be a big driver for a number of Asia-Pacific and Middle East countries.

Zacks Rank

Lockheed Martin currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the aerospace and defense equipment industry include TransDigm Group Incorporated (NYSE:TDG) , Engility Holdings, Inc. (NYSE:EGL) and CAE Inc. (TO:CAE) . While TransDigm sports a Zacks Rank #1 (Strong Buy), Engility and CAE carry a Zacks Rank #2 (Buy).

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