Lockheed Martin in the news

[Scooterd]

For those with vested Interest -
Finland has sealed a deal to buy dozens of F-35 stealth warplanes from the United States, in a sign of its military's close ties with NATO at a time of high tension between the West and Russia in Europe. The northern European nation which borders Russia and was historically neutral during the Cold War has signed the $9.4 billion agreement on Friday to buy 64 radar-evading Lockheed Martin jets.

The contract with the U.S. government and Lockheed Martin ( LMT ) includes maintenance equipment, spare parts and training services.

- Scoot

[crimsonghost747]

This deal was actually announced a couple of months ago, now they just apparently signed the paperwork to make it official.

More and more countries piling up on the F-35 project. First Switzerland, now Finland, and I believe Canada is the next western country that will choose the F-35.
This program will be one of the driving forces of LMT for the next several decades. A very happy shareholder here.

[Scooterd]

(02-13-2022, 12:41 AM)crimsonghost747 Wrote: This deal was actually announced a couple of months ago, now they just apparently signed the paperwork to make it official.

More and more countries piling up on the F-35 project. First Switzerland, now Finland, and I believe Canada is the next western country that will choose the F-35.
This program will be one of the driving forces of LMT for the next several decades. A very happy shareholder here.

Hence the wording "has sealed a deal" - All regulatory hurdles cleared / all US contract requirements completed.. Ink has now dried.

LMT contract updates for Feb thus far -

Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $16,099,270 cost-plus-incentive-fee contract for Patriot Advanced Capability-3 flight test support

Lockheed Martin Rotary and Mission Systems, Owego, New York, is awarded a $28,579,847 firm-fixed-price modification. This modification exercises an option to procure MH-60R/S aircraft mission computer and flight management computer FMC retrofit kits, wiring kits, and Lynx licenses.

Lockheed Martin Corp., Orlando, Florida, was awarded a $138,916,495 cost-plus-fixed-fee other transaction agreement for federation, testing and user operational assessments of the Spike non-line-of-sight missile system

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a not-to-exceed $315,806,063 fixed-price incentive (firm target), cost-plus-incentive-fee, and cost-plus-fixed-fee modification for the procurement, delivery, installation, and configuration of F-35 Joint Strike Fighter support equipment and non-aircraft spares.

Lockheed Martin Corp., Rotary and Mission Systems, Syracuse, New York, is awarded a $7,996,684 fixed-price incentive fee contract modification to previously awarded contract for Navy systems and associated equipment.

Lockheed Martin Space, Littleton, Colorado, is awarded $18,700,000 cost-plus-incentive-fee and cost-plus-fixed-fee for engineering development, systems integration, and long lead material procurement in support of missile production.

Lockheed Martin Corp., Syracuse, New York, is awarded a $9,050,510 cost-plus-incentive-fee modification for design, prototyping, and qualification testing of submarine electronic warfare equipment.


Lonnnggg LMT for decades.

[Kerim]

A great company for sure, with lots of tail winds, especially right now. And even with the recent runup does not seem very overvalued. But if things do settle down in Ukraine, I wonder if this price level holds. Or maybe it is the moment to take advantage of covered calls?

[fenders53]

(03-07-2022, 09:53 AM)Kerim Wrote: A great company for sure, with lots of tail winds, especially right now. And even with the recent runup does not seem very overvalued. But if things do settle down in Ukraine, I wonder if this price level holds. Or maybe it is the moment to take advantage of covered calls?

Can anyone show me evidence current affairs will meaningfully affect their earnings this year?  I suspect covered calls sold today will look pretty good in a few months on most any defense stock.  Nothing says you have to sell them close to the money to get some benefit.  Nobody should take this negative but these companies are not suddenly worth 25% more than last month.  Selling jets is not the same thing as selling jet fuel.

[Kerim]

Thanks Fenders -- that's more or less what I'm thinking.

On the other hand, tho -- even at this morning's price, it is barely at a P/E of 20, so the increase could stick. Especially if all the NATO countries start upping their defense spending in reaction to the new realities. And your thought about not close to the money makes good sense. The June $550s are going for $12 right now; and the $600s for $6.

[fenders53]

(03-07-2022, 10:32 AM)Kerim Wrote: Thanks Fenders -- that's more or less what I'm thinking.

On the other hand, tho -- even at this morning's price, it is barely at a P/E of 20, so the increase could stick. Especially if all the NATO countries start upping their defense spending in reaction to the new realities. And your thought about not close to the money makes good sense. The June $550s are going for $12 right now; and the $600s for $6.

Look at historical PEs.  Sell a CC and you can yell at me later  The market acts like it doesn't take two years to lock a new defense contract in.  Maybe I a too optimistic but this conflict will likely be on page three by then.  Yes I believe this is serious and it bothers me a lot.

[crimsonghost747]

(03-07-2022, 10:32 AM)Kerim Wrote: Especially if all the NATO countries start upping their defense spending in reaction to the new realities. 

This will happen for pretty much every single country in Europe. Many have already announced plans to increase their military spending, and the rest will follow soon enough. It'll probably take a year or two before that money starts flowing into the hands of defense contractors for real, but once that flow starts it won't stop anytime soon. The political game has completely changed from "military is a waste of tax payer money" to "ohh yes of course we love the military and we want to make sure our guys have everything they need" overnight. Even if the war ends tomorrow, military spending in Europe has been dramatically changed for the next decade or two.

Also, most of eastern Europe still runs on Soviet/Russian military assets. I don't foresee most of the countries in the region doing any business related to military equipment with Russia anymore. It'll be a very slow and gradual process, but I think most of these countries will start signing some deals with western manufacturers once the dust settles.