Lockheed Martin Corporation LMT recently secured a contract valued at $208.1 million to provide development, testing and integration support for the air guided missile-158D (AGM-158D). The AGM-158D is a variant of the Joint Air-to-Surface Standoff Missile (JASSM). The award has been provided by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.
The work related to this deal will be carried out in Orlando, FL, and is projected to be completed by Dec. 31, 2027.
Significance of LMT’s JASSM
Lockheed’s JASSM provides continued significant long-range, precision engagement capabilities for air-to-ground missions. This weapon system can destroy high-value, well-defended, fixed and relocatable targets from significant standoff range, keeping the aircrew well out of danger from hostile air defense systems without compromising lethality.
Such notable features must have been enabling Lockheed to secure contracts for these missiles from the Pentagon and other U.S. allies, the latest contract being an example of that.
LMT’s Growth Prospects
Rising military conflicts, terrorism and border disputes have led nations to increase their focus on national security, particularly on missile defense systems, backed by the rapid development of advanced missile technologies over the last decade.
This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 5% for the global missiles and missile defense systems market during the 2025-2030 time period.
Such market projections offer solid growth opportunities for Lockheed, with its Missile and Fire Control unit being a globally recognized developer of high-performance missiles. The unit pursues business in more than 50 countries worldwide. Some of its major programs are the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense air and missile defense programs, in addition to the JASSM.
Prospects of LMT’s Peers
Other defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below.
Northrop Grumman Corporation NOC: Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.
In November 2024, NOC delivered the Stand-in Attack Weapon test missile, which is designed to verify that the launch aircraft can safely carry and separate the weapon, to the U.S. Air Force for flight testing. SiAW is an air-to-ground weapon capable of defeating rapidly relocatable targets as part of an enemy’s anti-access/area denial environment.
RTX Corporation RTX: It is well known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.
In February 2025, RTX demonstrated 10 successful subsystem demonstrations for the U.S. Army's Next-Generation Short-Range Interceptor, which will eventually replace the Stinger surface-to-air missile. It is the U.S. Army’s new short-range missile that can fly faster and perform better against advanced aerial threats than existing interceptors.
The Boeing Company BA: Boeing-built and supported air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft. It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger.
Notably, BA’s GMD system is the United States’ only operationally deployed missile defense program capable of defending the entire U.S. homeland (including Alaska and Hawaii) against long-range ballistic missile attacks.
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The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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