Lockheed Martin Corp.’s LMT business segment, Space Systems, recently clinched a contract involving its Trident II (D5) Missile. The award has been provided by the Strategic Systems Programs, Washington, D.C.

Details of the Deal

Valued at $109.2 million, the contract is projected to be completed by Feb 28, 2029. Per the terms of the deal, Lockheed will support the integration of the Trident II (D5) Missile and reentry subsystems into the Common Missile Compartment for the U.S./U.K. Columbia/Dreadnought submarine construction programs.

A major portion of the work related to this deal will be carried out in Cape Canaveral, FL.

What’s Favoring Lockheed?

Lockheed’s Trident II D5 fleet ballistic missile is the latest generation of the U.S. Navy's submarine-launched fleet ballistic missiles, following the highly successful Polaris, Poseidon and Trident I C4 programs. The fact that this program is the only submarine-launched intercontinental ballistic missile currently in production in the United States surely highlights its significance in the country’s naval defense.

Notably, Lockheed’s Space Systems unit is the prime contractor for the development, production and support equipment of this missile. The company also supplies technical and logistical support at sites where the missile is deployed.

Due to its remarkable features, which are well-suited for any military mission, Lockheed continues to witness a steady inflow of orders involving the Trident missile. The latest contract win is a testament to that. This shall bolster LMT’s Space Systems unit’s revenues that registered a solid 3.5% year-over-year growth in the fourth quarter of 2023.

Growth Prospects

Of late, nations have been increasing their spending on military equipment and weaponry to modernize and upgrade their defense systems amid rising geopolitical tensions. In this context, the demand for missiles is likely to gain momentum as these play a very important role in military missions.

Per the latest report from the Mordor Intelligence firm, the global missile and missile defense systems market is expected to witness a CAGR of 4.8% over the 2024-2029 period. Such projections exemplify immense opportunities for Lockheed to capitalize on the expanding market.

Notably, the company’s Space Systems unit, apart from developing satellites and space transportation system, also builds strike missile as well as missile defense systems. Its major programs include Next Generation Interceptor — a program with the Missile Defense Agency — that utilizes next generation propulsion and sensors to provide homeland missile defense, apart from Trident II missile. It also builds the Next Generation Overhead Persistent Infrared (Next Gen OPIR) system, which provides the U.S. Space Force with enhanced worldwide missile warning capabilities.