Lockheed Martin Clinches $1.2B FMS Deal for Korea's F-16

Market data chart with calculator

Defense prime Lockheed Martin Corp. 's LMT Aeronautics business division has secured a foreign military sales (FMS) contract for upgrading Korean F-16 fighter jets. This deal comes from a sole-source acquisition.

Valued at $1.2 billion, this contract was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH. Work related to this deal will be carried out at Fort Worth, TX and is scheduled to be over by Nov 15, 2025.

A Brief Note on F-16

Originally manufactured by General Dynamics Corp. GD , F-16 became part of Lockheed Martin after it acquired the former's aircraft manufacturing business. The combat-proven F-16 falcon is a multi-role fighter jet, which currently serves 28 nations. As an F-16 Original Equipment Manufacturer (OEM), Lockheed Martin is uniquely qualified to design, engineer, develop, integrate and sustain a complete F-16 weapons system to meet customer requirements.

Over the decades, the F-16 falcon has evolved from a day-only lightweight jet to all-weather multi-role fighter. The latest and most advanced version - F-16V - is the 4 th generation of the F-16 fleet. Its superiority over the earlier F-16 models lies in its advanced APG-83 AESA radar.

Notably, Northrop Grumman Corp.'s NOC APG-83 radar provides F-16s with 5th generation fighter radar capabilities, which allow better detection and tracking ranges, multiple target track, high-resolution Synthetic Aperture Radar (SAR) maps for all-environment precision strike, interleaved air-to-air and air-to-surface mode operations for improved situational awareness, operational effectiveness and survivability.



Our View

Lockheed Martin generates a substantial amount of its total sales from international customers. Notably, the company's primary tactical aircraft F-35 as well as F-16 and C130J jets contribute significantly to the company's revenues.

A quick look at the company's recent deal wins reveals three large international upgrade programs, which in turn will help outweigh the expected decline in F-16 production next year, per management. Moreover, the company expects organic growth of 3-5% this year, which will primarily be led by the strength in the Aeronautics segment. We believe these developments along with the aforementioned contract win will further bolster the company's revenues from Aeronautics division in days to come.

Zacks Rank & Other Key Picks

Lockheed Martin currently carries a Zacks Rank #2 (Buy). Another favorably ranked stock in the aerospace and defense sector is Engility Holdings, Inc. EGL , with a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Engility Holdings has witnessed a 7.8% gain year to date. On an average, the company posted a positive earnings surprise of 23.19% in the trailing four quarters.

Zacks' Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NORTHROP GRUMMN (NOC): Free Stock Analysis Report

GENL DYNAMICS (GD): Free Stock Analysis Report

LOCKHEED MARTIN (LMT): Free Stock Analysis Report

ENGILITY HLDGS (EGL): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos