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Lockheed Martin Unit Wins $182M Deal for F-35 Equipment

Lockheed Martin Corp.’s LMT business unit, Lockheed Martin Aeronautics Co., has won a modification contract from the U.S. Navy for the F-35 low-rate initial production of the Lot 9 Alternate Mission Equipment.

The contract has a maximum value of $181.8 million and the contracting activity is Naval Air Systems Command, Patuxent River, MA.

Per the contract, Lockheed will produce and deliver armaments, pilot flight equipment and red gear to the Air Force, Marine Corps, Navy, non-U.S. Department of Defense (“DoD”) members, as well as its Foreign Military Sales (“FMS”) customers. A portion of the supplies will go to the allied governments of Israel and Japan.

Work is scheduled to be complete by Sep 2019 and will be performed in Fort Worth, TX. The contract will use fiscal 2015 aircraft procurement (Air Force), fiscal 2016 aircraft procurement (Marine Corps, and Navy), non-U.S. DoD participants, and FMS funds.

We remind investors that Lockheed Martin is the largest U.S. defense contractor, with a platform-centric focus that guarantees a steady inflow of follow-on orders from its leveraged presence in the U.S. Army, Air Force, Navy and IT programs. The company expects organic growth in 2016 to be driven primarily by the Aeronautics segment and specifically by the F-35 program.

Lockheed’s diverse product offerings allow it to ensure a consistent stream of orders from the U.S. and allied partners. In fact, 78% of its sales in 2015 came from the U.S. government. Recently, Lockheed received a couple of defense contracts, one each from Defense Logistics Agency and the U.S. Navy. (Read: Lockheed Martin (LMT) Wins Defense Contracts for $188.3M)

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

Stocks to Consider

Some better-ranked stocks in the aerospace and defense space include HEICO Corporation HEI, Huntington Ingalls Industries, Inc. HII and Spirit AeroSystems Holdings, Inc. SPR. While HEICO Corporation sports a Zacks Rank #1 (Strong Buy), both Huntington Ingalls and Spirit AeroSystems carry a Zacks Rank #2 (Buy).

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LOCKHEED MARTIN (LMT): Free Stock Analysis Report
 
SPIRIT AEROSYS (SPR): Free Stock Analysis Report
 
HEICO CORP (HEI): Free Stock Analysis Report
 
HUNTINGTON INGL (HII): Free Stock Analysis Report
 
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