The final days of 2025 have seen a significant influx of new business for defense giant Lockheed Martin. The corporation announced a series of contract modifications collectively worth nearly half a billion dollars, coupled with a key development in its strategic space division. Despite this positive news flow, the company’s share price has shown limited movement, trading sideways close to its annual peak.
Strategic Space Partnership Advances
In a separate but concurrent development, Lockheed Martin’s space segment marked progress. The company has selected Terran Orbital to supply satellite platforms for 18 space vehicles. These vehicles are being developed by Lockheed for the U.S. Space Development Agency (SDA) and form a component of the Tranche 3 Tracking Layer program. This initiative is a critical element in building future missile warning capabilities for the U.S. military.
This collaboration highlights Lockheed Martin’s integral role within the Proliferated Warfighter Space Architecture. This multi-layered satellite network is designed for space-based surveillance and threat detection.
Half a Billion in Defense Orders Detailed
The U.S. Department of Defense confirmed three distinct contract modifications on December 30, with a combined value just shy of $500 million. These agreements cover missile defense and naval systems, securing revenue streams through 2028.
Should investors sell immediately? Or is it worth buying Lockheed?
The breakdown is as follows:
- AEGIS Combat System: A $297.5 million award for system maintenance and integration. Work under this contract is scheduled for completion by December 2026.
- THAAD Missile Defense: An extension of maintenance support for the Terminal High Altitude Area Defense system deployed in the United Arab Emirates. This $142.6 million contract runs through August 2028.
- MK 41 Vertical Launching System (VLS): A $60.1 million contract for engineering support related to the VLS systems used by the U.S. Navy and allied partners, including Japan and Australia.
Broader Program Context: C-130J Funding Cap Increased
These recent contracts follow a substantial program adjustment announced just a week prior. On December 23, the U.S. Air Force elevated the contract ceiling for the C-130J Super Hercules program from $15 billion to $25 billion. While not an immediate payment, this regulatory adjustment establishes the framework for potential additional aircraft procurement through 2035.
Share Price Holds Steady Near Highs
Market reaction to the contract announcements has been muted. Lockheed Martin shares are currently trading around $488. This places them approximately 5% below the 52-week high of $516. Technical analysts note that short-term support near the $480 level remains crucial; a sustained break below this point could invite further selling pressure.
The subdued price action suggests investors may have already priced in the company’s consistent contract wins. Attention is now likely shifting to the execution and profitability of these programs in upcoming quarterly results.
Ad
Lockheed Stock: Buy or Sell?! New Lockheed Analysis from December 31 delivers the answer:
The latest Lockheed figures speak for themselves: Urgent action needed for Lockheed investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 31.
Lockheed: Buy or sell? Read more here...
