Lockheed Martin Corp. (NYSE:LMT) said Monday it secured a U.S. Army contract worth up to $1.2 billion to produce the next version of its Precision Strike Missile, or PrSM.
The indefinite delivery, indefinite quantity contract covers initial orders for PrSM Increment 2 missiles. It also includes future production and continued development.
Missile Targets Moving Ships
The award follows two flight tests of PrSM Increment 2 this year. Lockheed Martin completed the first test in March and a second in August.
During the latest test, the missile launched from a HIMARS system and engaged a moving maritime target. The company said technology from its Strigo product family helped inform parts of the missile’s guidance system.
Additional flight tests are planned for 2027.
Lockheed Expands Production
PrSM Increment 2 adds a multimode seeker designed to strike moving land and maritime targets. That capability expands the Army’s long-range precision strike options.
Lockheed Martin said it will now begin initial production while continuing system testing and development.
The award also builds on broader government investment in the PrSM program. The defense contractor is expanding capacity with a goal of quadrupling missile production.
Lockheed Martin said it expects to scale output as the Army moves toward larger Increment 2 purchases.
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Analyst Outlook
Lockheed Martin carries a Hold consensus rating with an average price forecast of $650.63.
UBS upgraded Lockheed Martin to Buy on Sept. 8 and raised its price target to $674. Citigroup maintained a Buy rating and lifted its target to $691 on Aug. 13. Morgan Stanley maintained an Equal-Weight rating and raised its target to $690 on July 24.
The stock trades at about 19.7 times earnings.
Benzinga Edge Rankings
Lockheed Martin has a Momentum score of 41.63 and a Value score of 33.75, both in neutral territory. Its Growth score stands at 21.54.
Quality remains the company’s strongest factor, with a score of 94.24.
Overall, the rankings show a quality-focused profile, while weaker growth and mixed technical momentum remain potential headwinds.
Top ETF Exposure
Lockheed Martin is a major holding in several aerospace and defense ETFs. The Corgi Aerospace & Commercial Aviation ETF (NASDAQ) has a 4.80% weighting in the stock.
The iShares U.S. Aerospace & Defense ETF (BATS) has a 4.62% weighting, while the Invesco Aerospace & Defense ETF (ARCA) has a 6.66% weighting.
Because Lockheed Martin has significant weight in these funds, ETF inflows and outflows can contribute to trading activity in the stock.
Price Action
Lockheed Martin shares were trading at $537.24 in Tuesday’s premarket session, according to Benzinga Pro data.
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