LMT Secures a Contract to Support MK-41 Vertical Launch System
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Lockheed Martin Corporation LMT recently clinched a contract to provide logistics, repair and spare support for 161 MK-41 vertical launch system (VLS) components included in the Aegis combat system. The award has been provided by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA.
The contract is valued at $83.3 million. Work related to this contract will be executed in Moorestown, NJ, and is projected to be completed by November 2029.
What’s Favoring LMT?
As nations continue to strengthen their defense structure, spending on military arms and ammunition continues to increase. This also includes increased investments in missiles and missile launch systems as they play a critical role in defense missions and act as a deterrent against enemy attacks. Lockheed Martin, as a prominent manufacturer of missiles and missile defense systems, thus continues to witness a steady flow of orders from the Pentagon and U.S. allies. The latest contract win is an example of that.
Notably, Lockheed Martin’s MK-41 VLS is a combat-proven missile launcher, which supports missiles for every warfighting domain such as anti-aircraft, anti-surface, anti-submarine, ballistic missile defense and land attack. It enhances operational availability, survivability and versatility while reducing staffing and training requirements.
Such notable features of the aforementioned missile launch system of Lockheed Martin are likely to have been boosting their demand, which is further evident from the latest contract win.
The solid demand that LMT’s MK-41 VLS enjoys in the missile market can be gauged from the fact that it has been deployed by 13 navies across the globe on more than 26 ship classes, which comprise of more than 180 ships.
LMT’s Growth Prospects
Rapidly increasing geopolitical tensions worldwide and heightened regional conflicts in different parts of the globe have prompted nations to bolster their defense capabilities. Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily these days in advanced missile systems for deterrence and defense. This, in turn, has been boosting the demand for technologically advanced missile systems and associated devices like missile launchers.
This must have prompted Mordor Intelligence to predict that the missile and missile defense systems market will increase from $13.51 billion in 2024 to $17.22 billion by 2029 at a CAGR of 5%.
Such growth opportunities offered by the aforementioned market should bode well for Lockheed Martin, with its product portfolio consisting of numerous combat-proven missiles and missile systems that are being bought by multiple nations worldwide.
Notably, its Missiles and Fire Control unit is 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, Terminal High Altitude Area Defense air and missile defense program and Multiple Launch Rocket System. Its prominent missiles include Precision Strike Missile, Joint Air-to-Ground Missile and Hellfire II Missile.
