Lockheed Martin on Wednesday announced a record order for Patriot missiles worth nearly $10 billion.
Despite its dominance in segments of the defense market, LMT stock has underperformed many defense peers this year, including RTX and General Dynamics.
Lockheed Martin on Wednesday announced that it received a $9.8 billion contract from the U.S. Army to produce 1,970 Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors, and the associated hardware. Lockheed Martin said the award marks the largest contract in the history of its Missiles and Fire Control segment.
The PAC-3 MSE interceptor is capable of defending against ballistic missiles, cruise missiles, hypersonic and airborne threats. The Patriot uses direct body-to-body contact, which generates more energy when hitting targets than blast fragmentation mechanisms.
"PAC-3 MSE's recent combat performance solidified it as a must-have capability for America and its allies around the world," said Jason Reynolds, vice president and general manager of Integrated Air and Missile Defense at Lockheed Martin. "With this contract, we'll be delivering record numbers of PAC-3 MSE for years to come, ensuring our customers have the advanced missile defense solutions they need to defend what matters most."
Lockheed Martin noted that it continues to ramp up production of the Patriots to meet demand. The company is expected to deliver more than 600 interceptors in 2025 for the first time.
Lockheed Martin Trails Peers
LMT stock climbed 1.7% Thursday, but tracked toward its first weekly decline in five weeks. Shares have rebounded 11% from their July 22 low. Shares remain down 6% so far this year through Thursday. LMT was little-changed early Friday.
Lockheed Martin tumbled following its late-July earnings report, which included billions in pretax losses on various programs. The contractor may also lose out on a major F-35 jet deal with Switzerland, as the country crafts its response to President Donald Trump's trade tariffs.
While Lockheed Martin has suffered setbacks, shares of rival defense contractors have trended higher.
RTX trades 37% higher this year and holds near all-time highs.
General Dynamics, up 22% in 2025, hit a record high at the end of August.
Heico has spiked more than 35% this year, while AeroVironment boasts a 47% gain. Kratos Defense has rocketed 141% year to date.
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