Lockheed Martin (LMT) Stock Wins $2.8B in Defense Contracts for F-35 and CH-53K Helicopters

TLDR

• Lockheed Martin was awarded two Defense Department contracts totaling ~$2.8 billion
• The larger deal, worth $2.29B, covers F-35 Lightning II sustainment services
• A second contract worth up to $525M goes to Lockheed subsidiary Sikorsky for CH-53K helicopter development
• LMT stock opened at $539.94, down 1.52% on the day, well below its 12-month high of $692
• Korea Investment Corp raised its LMT holdings by 17.1% in Q4, while the consensus analyst rating remains “Hold” with a price target of $620.68

Lockheed Martin (LMT) landed two U.S. Department of Defense contracts totaling roughly $2.8 billion, covering the F-35 fighter jet program and the CH-53K Heavy Lift Helicopter.

LMT stock opened at $539.94 on Friday, down 1.52% on the session. That puts it well below its 52-week high of $692.00 and under its 200-day moving average of $562.41.

Lockheed Martin Corporation, LMT

The larger of the two contracts is valued at $2.29 billion. It’s a cost-plus-incentive-fee indefinite-delivery/indefinite-quantity agreement covering sustainment activities for the F-35 Lightning II Joint Strike Fighter.

The work includes site activation, fleet management, interim contractor support, and reliability improvement plans. Customers include the Air Force, Marine Corps, Navy, Foreign Military Sales clients, and F-35 Cooperative Program Partners.

Most of the F-35 work will be done in Fort Worth, Texas (85%), with the remainder in Orlando, Florida. Completion is expected by December 2028.

The second contract goes to Sikorsky Aircraft, a Lockheed subsidiary, and is worth up to $525 million. It covers non-recurring engineering, integration, and flight-test support for the CH-53K Heavy Lift Helicopter program.

That work serves the Marine Corps, Navy, and a Foreign Military Sales customer. Primary work locations are Stratford, Connecticut (65.2%) and West Palm Beach, Florida (19.93%), with completion targeted for June 2031.

No funds will be obligated at award for either contract. Funds will be committed on individual orders as issued. Naval Air Systems Command in Patuxent River, Maryland, is the contracting activity.

Institutional Interest Picks Up

Korea Investment Corp raised its LMT position by 17.1% in Q4, bringing its stake to 175,294 units valued at approximately $84.78 million. Several other institutional investors also added to their positions recently.

Welch Group LLC increased its stake by 1.5% in Q4. Clough Capital Partners and Jain Global LLC both opened new positions in Q3. Institutional investors collectively own 74.19% of Lockheed Martin.

Earnings Miss and Analyst Views

Lockheed’s Q1 2026 results came in below expectations. The company posted EPS of $6.44, missing the consensus estimate of $6.79. Revenue came in at $18.02 billion versus an expected $18.38 billion.

Revenue was up just 0.3% year-over-year. Full-year 2026 EPS guidance is set at $29.35–$30.25, with analysts forecasting $29.88 for the year.

On the analyst front, the picture is mixed. Citigroup cut its price target from $675 to $571 and kept a “neutral” rating. Morgan Stanley lowered its target from $675 to $653 with an “equal weight” rating. Bank of America trimmed its target to $600, also rated “neutral.”

DZ Bank went the other way, upgrading LMT to “strong buy” in late April. Wells Fargo initiated coverage with an “equal weight” rating and a $650 target.

The current consensus across 21 analysts is “Hold,” with an average price target of $620.68 — about 15% above Friday’s opening price.

Lockheed also declared a quarterly dividend of $3.45 per share, payable June 26, representing a 2.6% annualized yield.

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