Summary
- Lockheed Martin received $2B in contract awards.
- Month-over-month there was a slight decrease in contract values.
- Lockheed Martin is still heading for a very strong year.
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In June 2020, we launched the Defense Contracts Monitor on The Aerospace Forum. The Defense Contracts Monitor is an interactive dashboard that we populate weekly with new contracts awarded to Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT). Currently, the monitor consists of nearly 1,250 contracts, and we expand that as we are adding more companies to our coverage and update the monitor weekly.
Source: Robert Sullivan
In this report, I have a look at the order inflow for Lockheed Martin during the month of October. You can read the September report here. For this analysis, we used the TAF Defense Contracts Monitor, which we have made available to subscribers of The Aerospace Forum.
Lockheed Martin Sells Helicopters
Figure 1: Lockheed Martin contracts in October 2020 (Source: The Aerospace Forum)
In September, Lockheed Martin was awarded 16 contracts valued at $2B, with funds obligated on time of award standing at $908 million or 46%. Both the funds obligated and the contract value are around $600 million lower month-over-month but that's not a biggie especially when we consider that last month marked the end of the fiscal year for the DoD which often brings a slight uptick in the last few months of the fiscal year.
The Aegis program received nearly $760 million in contracts. The biggest contract is valued $724 million, however this does include options, which we weren’t able to subtract from the contract total as contract was priced as contract plus options. The contract calls for development and lifecycle engineering enabling development of Ballistic Missile Defense as well as supporting tests, modeling and engineering.
Lockheed Martin also received a $0.5B contract from the US Navy for the low rate initial production (LRIP) of six CH-53K helicopters and support for the CH-53K program. The CH-53K is the US Navy’s heavy-lift helicopter. The helicopter can transport 30 troops or hook up to 36,000 lbs of cargo and replaces the CH-53E of which more than 200 were built.
