Lockheed Martin shares advanced by nearly 3% on Monday, buoyed by a series of significant defense contract announcements and strategic corporate developments. The U.S. Department of Defense has placed a substantial order for F-35 fighter jet materials, while the State Department has cleared a separate missile sale to a key European ally.
Substantial F-35 Order Extends Production Horizon
A recent contract expansion from the Naval Air Systems Command represents a major commitment to the F-35 program. The agreement, initially confirmed on December 8 and detailed the following day, covers long-lead materials for 198 F-35 Lightning II aircraft. This procurement is split between 65 jets from Lot 20 and 133 from Lot 21, with the production phase scheduled to continue through the end of 2030.
The funding structure for this $1.14 billion award highlights the jet’s broad international appeal:
* $556.6 million is provided by foreign military customers
* $225.7 million comes from non-U.S. program participants
* Remaining funds are allocated from the U.S. Air Force and Navy budgets for fiscal years 2025 and 2026
Approximately 59% of the work will be performed at Lockheed’s F-35 final assembly facility in Fort Worth, Texas.
European Missile Sale and Hypersonic Investment
In a parallel development on December 9, the U.S. State Department authorized the export of 100 JASSM-ER (AGM-158B/B-2) air-launched cruise missiles to Italy. This sale, valued at approximately $301 million, involves missiles capable of engaging targets at distances exceeding 900 kilometers. The deal strengthens the company’s standing within the European defense sector.
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Beyond these immediate contracts, Lockheed is aggressively advancing its manufacturing capabilities for next-generation systems. On December 8, the corporation revealed a partnership with startup Hadrian, aiming to integrate automated production techniques for its PAC-3 and THAAD missile defense systems.
The following day, the company inaugurated a new $17.1 million laboratory in Huntsville, Alabama, dedicated to hypersonic weapon integration. This facility is designed to accelerate the development of long-range hypersonic systems, a technology area gaining critical importance in global strategic competition.
Strong Backlog and Analyst Outlook Underpin Confidence
Lockheed Martin operates from a position of considerable strength, supported by a massive order backlog totaling $179 billion—equivalent to more than two years of revenue. The company’s recent third-quarter earnings per share of $6.95 notably surpassed the consensus estimate of $6.33.
Looking ahead, management has provided earnings per share guidance for the full year 2025 in the range of $22.15 to $22.35. The consensus price target among analysts currently stands at $518.79, suggesting potential upside of over 11% from recent trading levels. Investors will gain further insight into the progress of the new F-35 production lots when the company reports its next quarterly results on January 27, 2026.
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