Lockheed Martin LMT announced that it has received a $12.8-million contract from the U.S. Navy to procure consumable parts and materials in support of the C/KC-130J aircraft for the Marine Corps, Marine Corps Reserves, Coast Guard and the government of Kuwait.
The work on this contract will be primarily done in the United States and 2.5% of the work will be performed in Kuwait. The contract work is expected to be completed by December 2023.
Importance of KC-130J
Lockheed is a global leader in Aerial refueling and has expertise in combat proven KC-130 Hercules tanker technologies. The new KC-130J is build on proven tanker designs while taking full advantage of tremendous technological and performance improvements inherent in the basic C-130J aircraft.
The aerial fuel tanker has been pivotal part of Marine Corps aviation operations since 1960, and the latest KC-130J refueling tanker is an improved version of the initial KC-130F and R-models. Compared with the legacy refueling models, the KC-130J delivers increased speed and fuel efficiency, improved payload/range capabilities, an integrated defensive suite, automated maintenance fault reporting, high-altitude ramp and door hydraulics, along with unmatched situational awareness with its digital avionics and dual Head Up Displays.
Future of Aerial Refueling Market
The importance of Aerial refueling is rising on a global scale as it increases the functional capacity of military aircrafts, and allows them to carry greater volumes of weapons as well as other essential objects at the time of take-off. Midair refueling allows aircrafts to remain airborne for a longer time and complete critical missions. The Boeing Company’s BA KC-46 Pegasus tanker offers it exposure to the aerial refueling market. The KC-46A Pegasus is a widebody, multirole tanker. Boeing has already delivered the 34 KC-46 Pegasus tanker to the U.S military establishment.
Per a report from StartviewResearch, the global aerial refueling systems market is likely to reach a value of US$ 671.9 million in 2024. Rising demand for aerial refueling systems and components will benefit companies like Eaton Corporation ETN and General Electric’s GE unit GE Aviation, among others.
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past six months, Lockheed’s shares have outperformed the industry.
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The Boeing Company (BA): Free Stock Analysis Report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
General Electric Company (GE): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
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