Lockheed Martin Corporation LMT recently secured a contract valued at $63.4 million for the production of Trident II D5 missiles and providing deployed systems support. The award has been provided by the Strategic Systems Programs, Washington, D.C.

The majority of the work related to this deal will be carried out in Culpepper, VA; Magna, UT and Denver, CO. The contract is projected to be completed by Sept. 30, 2029.

Significance of LMT’s Trident II

Lockheed’s Trident II D5 missile is a powerful sea-based strategic deterrent, known for its accuracy, reliability and long-range strike capability. It has a proven track record of 191 successful test launches since 1989, demonstrating unparalleled reliability. Its advanced guidance system, adaptability for future upgrades and extended service life until 2042 make it a critical asset for a nation’s defense arsenal.

This, in turn, must have been enabling Lockheed to secure notable contracts for this missile from the Pentagon and other U.S. allies, the latest contract being an example of that.

Moreover, in January 2025, the U.S. Navy awarded Lockheed a $383 million modification contract for the development of the next generation of the Trident II Strategic Weapons System (SWS) D5 missile. Per the terms of the deal, the company will design the upgraded missile, called the Trident II D5 Life Extension 2 (D5LE2), which will be carried aboard COLUMBIA-class ballistic missile submarines to ensure the weapon system remains credible through 2084.

LMT’s Growth Prospects

Rising military conflicts, terrorism and border disputes have led nations to increase their focus on national security, particularly on missile defense systems, backed by the rapid development of advanced missile technologies over the last decade.

This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 5% for the global missiles and missile defense systems market during the 2025-2030 time period.

Such market projections offer solid growth opportunities for Lockheed, with its Missile and Fire Control unit being a recognized developer of high-performance missiles. The unit pursues business in more than 50 countries worldwide. Some of its major programs are the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense (THAAD) air and missile defense programs.

Prospects of LMT’s Peers

Other defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below.

Northrop Grumman Corporation NOC: Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.

The company’s long-term (three to five years) earnings growth rate is 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 3%.

RTX Corporation RTX: It is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.

The company’s long-term earnings growth rate is 9.7%. The Zacks Consensus Estimate for RTX’s 2025 sales indicates year-over-year growth of 4.4%.

The Boeing Company BA: It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built and supported air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.

The company has a long-term earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 25.6%.

LMT Stock’s Price Movement

Shares of LMT have gained 8.5% in the past month against the industry’s 1.9% decline.

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LMT’s Zacks Rank

LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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