Will Lockheed Martin's (LMT) HIMARS Expansion Define Its Long-Term Defense Leadership?

• Lockheed Martin marked a significant achievement by delivering the 750th HIMARS launcher to the U.S. Army, in conjunction with a US$2.9 billion contract portfolio enabling a doubling of annual output and supporting supply chain improvements.
• This milestone not only addresses urgent production needs but also highlights Lockheed Martin's pivotal role in advancing U.S. defense capabilities and responding to growing national security demands.
• We'll explore how this major HIMARS production milestone and contract expansion may shape Lockheed Martin's future order momentum and execution outlook.

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Lockheed Martin Investment Narrative Recap

To be a shareholder in Lockheed Martin, you must believe in the company's ability to maintain leadership in advanced defense technology while meeting growing demand for missile systems and munitions. The HIMARS production milestone and US$2.9 billion in contracts mark a positive development toward meeting urgent customer needs, potentially supporting near-term order momentum; however, they do not fully eliminate exposure to fixed-price contract risks or cost overruns, which remain important to watch in the short term.

Among recent announcements, Lockheed Martin’s new partnership with Avio to secure a solid rocket motor supply in the US stands out as highly relevant. This initiative is designed to strengthen supply chain resilience for advanced missile programs, underscoring the critical importance of stable component access to executing on production ramp-ups like HIMARS.

On the other hand, investors should remain mindful of financial risk in legacy programs, as...

Read the full narrative on Lockheed Martin (it's free!)

Lockheed Martin's outlook anticipates $81.0 billion in revenue and $7.1 billion in earnings by 2028. This requires 4.1% annual revenue growth and a $2.9 billion increase in earnings from the current $4.2 billion.

Uncover how Lockheed Martin's forecasts yield a $526.88 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Twenty-five Simply Wall St Community fair value estimates for Lockheed Martin range widely from US$389.28 to US$637.56 per share. With exposure to cost overruns on complex fixed-price contracts still an active concern, you may want to explore these diverse viewpoints to better understand expectations for the company’s future performance.

Explore 25 other fair value estimates on Lockheed Martin - why the stock might be worth 14% less than the current price!

Build Your Own Lockheed Martin Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lockheed Martin research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Lockheed Martin research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lockheed Martin's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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