U.S. Army Awards Lockheed Martin $483M

The U.S. Army awarded Lockheed Martin (NYSE: LMT) a follow-on production contract for Joint-Air-to-Ground Missiles (JAGM) and HELLFIRE missiles with a Program Year 3 (PY3) award total value of $483 million.

This contract will provide JAGM and HELLFIRE procurement and production support for the U.S. Army, U.S. Navy and international customers. This contract is the third follow-on award that is part of a multiple-year award that was initially awarded in March 2023. The total contract award value is for up to $4.5 billion through 2025.

“This follow-on contract signals the Army’s continued confidence in both the JAGM and HELLFIRE systems as premier defence capabilities when it comes to ensuring customer readiness worldwide,” said Joey Drake, program management director of Multi-Domain Missile Systems at Lockheed Martin Missiles and Fire Control.

HELLFIRE currently has more than 30 FMS customers with new HELLFIRE international customer Poland included in the PY3 contract. This contract provides maximum flexibility to facilitate the procurement of both systems to multiple domestic and international customers, especially as the JAGM program anticipates a significant increase in international demand for the weapon system in the coming years.

“We will be able to continue to provide procurement and production support for both systems, which is important because both are critical multi-domain combat solutions that protect and defend our armed forces and allies against ever-changing global threats,” said Drake.

Both the JAGM and HELLFIRE systems are designed and developed in Orlando, Florida. The weapon systems are manufactured across various Lockheed Martin facilities in Dallas; Orlando and Ocala, Florida.; Archbald, Pennsylvania.; and Troy, Alabama. With more than 140,000 missiles produced, JAGM and HELLFIRE continue to be the weapon of choice in critical, precision engagement opportunities.