Stock Markets July 6, 2026 05:21 PM

Lockheed Martin Secures Over $203 Million in Two U.S. Defense Awards

Contracts span AEGIS ship integration and C-5 Galaxy software sustainment with work across multiple U.S. and allied sites

By Caleb Monroe
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Lockheed Martin Corp. has been awarded two U.S. military contracts that together exceed $203 million. One contract covers AEGIS ship integration and testing, with options that could lift its value to more than $1.38 billion and work extending through 2036 if exercised. The second contract covers software sustainment for the C-5 Galaxy and carries a baseline value of $142.91 million with funding obligated from fiscal 2026 operations and maintenance.

Lockheed Martin Secures Over $203 Million in Two U.S. Defense Awards
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Key Points

  • Lockheed Martin received two U.S. military contracts exceeding $203 million combined, covering naval AEGIS integration and C-5 Galaxy software sustainment.
  • The AEGIS contract was awarded at $60,602,848 on June 30, 2026, with options that could raise its total to $1,383,266,817 and work potentially continuing through June 2036.
  • The C-5 Galaxy award is a $142,910,785 cost-plus-fixed-fee and firm-fixed-price IDIQ contract, with $19,317,604 in fiscal 2026 O&M funds obligated at the time of award and expected completion by May 20, 2032.

Lockheed Martin Corp. received two contract awards from the U.S. military, together totaling in excess of $203 million, the Department of War announced. The awards cover naval AEGIS ship integration work and software sustainment services for the C-5 Galaxy transport aircraft.

On June 30, 2026, Lockheed Martin Rotary and Mission Systems was granted a $60,602,848 contract to perform AEGIS ship integration and test in support of surface combatant ships and related tactical sites. The contract includes options that, if exercised, would raise the cumulative contract value to $1,383,266,817.

Work under the AEGIS award is slated to be performed across several locations: Moorestown, New Jersey (36%); Norfolk, Virginia Beach (25%); Bath, Maine (11%); Pascagoula, Mississippi (10%); San Diego, California (9%); Deveselu, Romania (4%); Redzikowo, Poland (3%); and a range of other sites (2%). The base contract is expected to reach completion by June 2027, with potential continuation through June 2036 if all options are taken. The award was competitively procured via the System for Award Management website and drew two offers. Naval Sea Systems Command in Washington, D.C., is listed as the contracting activity.

Separately, Lockheed Martin Aeronautics Co. received a $142,910,785 contract structured as a cost-plus-fixed-fee and firm-fixed-price, indefinite-delivery/indefinite-quantity vehicle for software sustainment services supporting the C-5 Galaxy. The scope covers software updates and maintenance, support for certification artifacts, systems integration laboratory upkeep, engineering and technical support, and broader software engineering support services.

Work for the C-5 sustainment contract will be executed in Marietta, Georgia, and Greenville, South Carolina. The contract has an expected completion date of May 20, 2032. It was awarded as a sole source acquisition, and fiscal 2026 operation and maintenance funds totaling $19,317,604 were obligated at the time of award. The C-5 Contracting Branch at Robins Air Force Base, Georgia, is the contracting activity for this award.


Both awards highlight ongoing government investment in naval combat system integration and long-term aircraft software sustainment. The AEGIS contract contains substantial optionality that could extend both the duration and scale of work materially, while the C-5 sustainment award commits near-term operations and maintenance funding to software lifecycle activities.

Risks

  • Optionality in the AEGIS award means the larger contract value and extended work timeline are contingent on exercises of contract options - this introduces funding and program continuity uncertainty.
  • The C-5 sustainment contract was a sole source acquisition and only $19,317,604 in fiscal 2026 O&M funds were obligated at award - additional funding and future task orders are required to sustain long-term work through 2032.
  • The AEGIS contract was competitively procured with two offers received, indicating continued competition in naval systems contracts which could affect future awards and pricing dynamics.

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