Lockheed Martin Awarded $41.8 Million in U.S. Navy Contracts for Aegis and Submarine Systems

Lockheed Martin Corp. (NYSE: LMT) has been awarded three U.S. Navy contracts with a combined value of $41.8 million, the Department of Defense announced. The awards are for continued support of the critical Aegis Combat System and for submarine electronic warfare equipment.

Breakdown of the Awards

The Pentagon's announcement detailed three separate contract actions for the defense and aerospace giant:

• A $17.8 million cost-plus-fixed-fee modification for Aegis design agent field engineering services. Work will be performed in multiple locations, including San Diego, California, and Yokosuka, Japan, with completion expected by September 2027.
• A $14.6 million firm-fixed-price delivery order for AN/BLQ-10 spares, which are part of the electronic warfare systems used on both new and in-service submarines. This work is scheduled for completion by February 2028.
• A $9.5 million cost-plus-incentive-fee modification for support of the Aegis Ship Integration and Test program, with work expected to be finished by September 2027.

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Program and Financial Context

While the total value is modest relative to Lockheed Martin's overall revenue, these awards reinforce the company's entrenched position as a primary contractor for core U.S. Navy programs. The Aegis Combat System is the Navy's primary integrated naval weapon system, while the AN/BLQ-10 system provides submarines with essential electronic sensing and countermeasures capabilities.

These contract modifications and delivery orders contribute to Lockheed Martin's revenue backlog and signify stable, ongoing demand for its services and hardware. The contracts will be funded with Navy procurement appropriations from fiscal years 2024, 2025, and 2026. The Naval Sea Systems Command and the Naval Surface Warfare Center serve as the contracting activities, according to the DoD.