Stock Markets June 30, 2026 05:21 PM

Lockheed Martin Secures Over $3.1 Billion in Three U.S. Defense Awards

Contracts cover Sentinel A4 radar production, Spain F-100 frigate upgrades, and MK 41 VLS modules with work across multiple U.S. sites and allied locations

By Nina Shah
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Lockheed Martin was granted three separate U.S. defense contracts totaling more than $3.1 billion. The largest is a nearly $3.0 billion award for production and engineering of the Sentinel A4 radar. Two additional naval-related contracts were awarded for Spain's F-100 mid-life upgrades and for additional MK 41 Vertical Launching System modules and equipment.

Lockheed Martin Secures Over $3.1 Billion in Three U.S. Defense Awards
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Key Points

  • Lockheed Martin received three U.S. defense awards totaling more than $3.1 billion, including a $2.99 billion Sentinel A4 radar production and engineering services contract.
  • Naval-related work includes a $103.9 million contract for long-lead material procurement and early engineering for the Spain F-100 mid-life upgrade, and a $73.68 million modification for MK 41 VLS modules and related equipment.
  • Work will be performed at multiple U.S. locations and select international sites; contracting activities are Army Contracting Command, Redstone Arsenal, Alabama for the radar contract and Naval Sea Systems Command, Washington, D.C. for the naval contracts. Sectors impacted include defense manufacturing and naval procurement.

The U.S. Department of War announced Tuesday that Lockheed Martin Corp. was awarded three contracts that together exceed $3.1 billion in value. The awards span radar production and naval equipment work, and will be executed at several of the company's U.S. facilities and select international sites.

The largest contract is a $2.99 billion agreement described as a fixed-price-incentive, cost-plus-fixed-fee, cost-no-fee contract for Sentinel A4 radar production and associated engineering services. That award was directed to Lockheed Martin's Liverpool, New York facility following an internet solicitation that returned a single bid. Contracting documents state that work locations and the flow of funding will be identified with each individual order; the estimated completion date for this work is June 29, 2031.

Separately, Lockheed Martin's Moorestown, New Jersey facility received a $103.9 million cost-only undefinitized contract action on June 26, 2026. That award covers long-lead material procurement, early engineering support, and establishment of a test site for the Spain F-100 mid-life upgrade program, which pertains to the Spanish Navy's Alvaro de Bazan-class frigates. The work breakdown lists Moorestown, New Jersey as performing 90% of the work, Clearwater, Florida 7%, Madrid, Spain 2%, and Owego, New York 1%. Completion is anticipated by June 2027.

In addition, the company's Rotary and Mission Systems division in Moorestown, New Jersey was awarded a $73.68 million firm-fixed-price modification to exercise options for MK 41 Vertical Launching System modules and ancillary equipment. The contract cites multiple U.S. work locations, including Moorestown, New Jersey (31%), Indianapolis, Indiana (27%), and Saginaw, Michigan (7%), with the work expected to be completed by December 2030.

The Army Contracting Command at Redstone Arsenal, Alabama is identified as the contracting activity for the Sentinel radar contract. For the two naval-related contracts - the Spain F-100 mid-life upgrade work and the MK 41 VLS modification - Naval Sea Systems Command in Washington, D.C. is listed as the contracting activity.

These awards span production, engineering, procurement of long-lead materials, early engineering efforts, and exercise of options for additional naval systems. Funding allocations and precise work orders for some elements will be set at the task-order level.


Context and next steps

Execution timelines extend several years, with the largest contract carrying an estimated completion into 2031 and other awards concluding by 2027 and 2030 respectively. Specific funding schedules will be determined as orders are placed.

Risks

  • Funding and precise work locations for some orders will be determined at the task-order stage, introducing uncertainty in timing and cash flow - this affects defense contractors and government procurement budgets.
  • The Sentinel A4 award followed an internet solicitation that returned a single bid, indicating limited competition for that procurement and potential program concentration risk in the defense sector.
  • Extended completion horizons through 2027-2031 mean execution and schedule risk over multiple years for both Lockheed Martin and suppliers involved in production and system integration.

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