Stock Markets September 14, 2026 05:32 PM

Lockheed Martin Secures Three U.S. Defense Awards Totaling More Than $1.3 Billion

Contracts span precision strike, MLRS recapitalization and tooling for increased anti-ship missile production

By Maya Rios
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The U.S. Department of War has granted Lockheed Martin three separate defense contracts that together exceed $1.3 billion. The awards include a $1.21 billion contract for Precision Strike Missile Increment 2 Early Operational Capability, a $97.64 million contract for Multiple Launch Rocket System recapitalization, and a $13.17 million modification for tooling and test equipment to support increased Long Range Anti-Ship Missile production.

Lockheed Martin Secures Three U.S. Defense Awards Totaling More Than $1.3 Billion
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Key Points

  • Three contracts awarded to Lockheed Martin by the U.S. Department of War total more than $1.3 billion, covering precision strike capability, MLRS recapitalization, and missile tooling and test equipment.
  • Contracts involve multiple contract types and funding sources, including cost-plus-fixed-fee, firm-fixed-price, indefinite-delivery/indefinite-quantity arrangements, fiscal 2025 Army missile procurement funds, fiscal 2025 and 2026 Navy weapons procurement funds, and Foreign Military Sales funds.
  • Work is geographically distributed across Alabama, Arkansas, Florida and Texas, affecting defense manufacturing and procurement activity in those regions.

The U.S. Department of War awarded Lockheed Martin Corp. three defense contracts on Monday that together total in excess of $1.3 billion.

The largest of the awards is a $1.21 billion contract to support the Precision Strike Missile Increment 2 Early Operational Capability. The contract is structured as cost-plus-fixed-fee, firm-fixed-price and indefinite-delivery/indefinite-quantity. It carries a projected completion date of Sept. 13, 2031. According to the award notice, one bid was solicited and received. The contract is managed by Army Contracting Command at Redstone Arsenal, Alabama.

Lockheed Martin’s Grand Prairie, Texas facility was named the recipient of a $97.64 million contract to recapitalize the Multiple Launch Rocket System. Work under this award will be performed in Camden, Arkansas, and in Grand Prairie and New Boston, Texas. The anticipated completion date for this work is Sept. 4, 2031. At the time the award was made, fiscal 2025 missile procurement Army funds in the amount of $97.64 million were obligated.

The company’s Missile and Fire Control division in Orlando, Florida received a $13.17 million modification to an existing contract. The modification covers tooling and test equipment associated with Joint Air-to-Surface Standoff Missile requirements intended to support increased production of Long Range Anti-Ship Missiles. That modification raises the cumulative contract value from $462.95 million to $476.12 million. Work related to the modification is expected to be completed by Nov. 29, 2028.

The tooling and test equipment modification includes Foreign Military Sales to an undisclosed country. At the time of the modification award, fiscal 2025 and 2026 Navy weapons procurement funds totaling $11.72 million were obligated, together with $1.45 million in Foreign Military Sales funds.


Contract administration and funding notes

The Precision Strike Missile award is administered by Army Contracting Command, Redstone Arsenal, Alabama. The MLRS recapitalization work is tied to fiscal 2025 Army missile procurement funds, which were obligated when the award was announced. The tooling and test equipment modification combines Navy weapons procurement funding for fiscal 2025 and 2026 with Foreign Military Sales dollars for an undisclosed foreign purchaser.

The awards collectively reflect multiple contract types, locations for execution across several states and the involvement of both domestic procurement and Foreign Military Sales funding streams.

Risks

  • Award timelines extend several years, creating execution risk tied to program schedules and contract completion dates - this affects defense manufacturing and program delivery.
  • The modification for increased Long Range Anti-Ship Missile production involves Foreign Military Sales to an undisclosed country, which introduces potential political or export-control uncertainties that could influence delivery or funding.
  • One of the larger awards noted that only one bid was solicited and received, which may suggest limited competition for that procurement and associated contractual concentration risk.

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