Latest news with #JASSM
Yahoo
28-04-2025
- Business
- Yahoo
Lockheed Martin Corporation (LMT): A Bull Case Theory
We came across a bullish thesis on Lockheed Martin Corporation (LMT) on Substack by Steve Wagner. In this article, we will summarize the bulls' thesis on LMT. Lockheed Martin Corporation (LMT)'s share was trading at $466.81 as of April 24th. LMT's trailing and forward P/E were 20.12 and 17.15 respectively according to Yahoo Finance. Copyright: scanrail / 123RF Stock Photo Lockheed Martin (LMT) delivered an impressive first-quarter 2025 performance, reinforcing its reputation as a reliable and well-managed defense compounder. Revenues grew 4% year-over-year to $18 billion, while net earnings climbed to $1.7 billion, translating to an EPS of $7.28 compared to $6.39 in Q1 2024. All four of the company's business segments saw improved operating margins, with Missiles & Fire Control notably increasing its margin from 10.4% to 13.8%, helping drive a 19% boost in segment operating profit. Free cash flow stood at a strong $955 million, and Lockheed's order backlog remained at a formidable ~$173 billion—equivalent to more than two years of revenue—underscoring the resilience of its long-term demand pipeline. Alongside earnings, Lockheed reaffirmed its full-year 2025 guidance, expecting ~$74 billion in sales and $27 in EPS, demonstrating management's confidence in navigating what it described as a "highly dynamic geopolitical and technical environment." Recent contract wins provide concrete support for that optimism, with the company securing major new awards across its missile systems portfolio—including Precision Strike, THAAD, and JASSM/LRASM programs—as well as a significant Trident II award. These contracts, totaling up to $10 billion in potential future revenue, add further strength to the already robust backlog and enhance visibility into long-term growth. In a move that underscores its commitment to maintaining technological leadership, Lockheed also announced the acquisition of Amentum's Rapid Solutions business. This bolt-on acquisition expands Lockheed's capabilities in intelligence, surveillance, and reconnaissance (ISR), advanced communications, and tactical systems—particularly through assets like electronically steered array technologies. Though not transformational in size, the acquisition is strategically sound, providing Lockheed with niche technical capabilities that align well with its broader defense technology portfolio. The integration of Rapid Solutions into the Space segment will deepen Lockheed's ISR expertise and further support its mission to deliver next-generation solutions for high-priority defense applications. Taken together, Lockheed's first quarter results and its strategic acquisition strengthen the company's investment case. Execution remains tight, the balance sheet is healthy, and guidance is solid. Management's focus on backlog conversion, operational discipline, and incremental innovation suggest a durable growth trajectory. While not flashy, the Amentum acquisition adds depth to Lockheed's ISR suite and marginally widens its long-term runway in advanced defense technology. For investors, this is a clear reaffirmation of Lockheed's strength as a steady compounder with a growing technological edge. Lockheed Martin Corporation (LMT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held LMT at the end of the fourth quarter which was 58 in the previous quarter. While we acknowledge the risk and potential of LMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yemen Online
09-04-2025
- Business
- Yemen Online
U.S. missiles may leave Asia vulnerable in Yemen campaign push
The military commanders and congressional staffers briefed by the Pentagon revealed a growing concern that could reshape America's defense posture across two critical regions. According to a report by The New York Times, officials from the U.S. Indo-Pacific Command [INDOPACOM] are increasingly worried that the Pentagon may soon need to shift precision-guided, long-range weapons from Asia to the Middle East. This potential transfer stems from an ongoing campaign by U.S. Central Command [CENTCOM] against the Iran-backed Houthi militia in western Yemen, a conflict that has already consumed substantial munitions and resources in its first month alone. The strategic dilemma is stark: with limited stockpiles and rising tensions in both theaters, the United States faces tough choices about where to prioritize its military might at a time when global adversaries are watching closely. The campaign against the Houthis, which intensified in mid-March, has already cost the Pentagon upwards of $200 million in munitions, with total operational expenses potentially nearing $1 billion when factoring in personnel and deployment costs, as reported by CNN on April 4, 2025. This rapid expenditure is driven by the need to counter Houthi attacks on Red Sea shipping lanes, a vital artery for global trade, and to protect U.S. and allied interests in the Middle East. Yet, the operation's demands are pulling resources away from Asia, where INDOPACOM planners argue that these same weapons are essential to deter an increasingly assertive China. The tension underscores a broader challenge for the U.S. military: maintaining readiness across multiple fronts with finite assets. At the heart of this issue are the specific weapon systems in question, which represent some of the most advanced and effective tools in the U.S. arsenal. Among those likely being considered for transfer are the Joint Air-to-Surface Standoff Missile [JASSM] and the Tomahawk Land Attack Missile [TLAM], both of which have been pivotal in the Yemen campaign. The JASSM, developed by Lockheed Martin, is a stealthy, precision-guided cruise missile designed to strike high-value targets from beyond enemy air defenses. With a range exceeding 230 miles in its baseline version and over 500 miles in its extended-range variant [JASSM-ER], it allows aircraft like the B-2 Spirit or F-15E Strike Eagle to engage targets without entering contested airspace. Its 1,000-pound warhead, equipped with a penetrating capability, makes it ideal for destroying fortified bunkers or command centers—targets that align with CENTCOM's efforts to degrade Houthi infrastructure. The Tomahawk, a mainstay of U.S. naval power since its introduction in the 1980s, offers even greater reach, with a range of approximately 1,500 miles in its Block IV configuration. Launched from ships or submarines, this missile can loiter over a battlefield, adjust its course mid-flight, and strike with pinpoint accuracy thanks to its GPS and inertial navigation systems. Its versatility has made it a go-to weapon for operations like the Yemen strikes, where naval assets in the Red Sea and the Gulf of Aden have been heavily engaged. CNN reported that both JASSMs and Tomahawks have been expended in significant numbers against the Houthis, targeting missile launchers, drone facilities, and underground storage sites. Yet, these systems are equally critical in the Indo-Pacific, where their long range and precision would be vital in any potential conflict with China, particularly around flashpoints like Taiwan or the South China Sea. Another system potentially in play is the Joint Direct Attack Munition [JDAM], a GPS-guided kit that transforms unguided bombs into smart munitions. While less glamorous than the JASSM or Tomahawk, JDAMs are a workhorse of modern air campaigns, offering ranges up to 15 miles when dropped from high altitudes and costing significantly less than cruise missiles—around $25,000 per unit compared to over $1 million for a Tomahawk. Their widespread use in Yemen, likely against mobile Houthi targets or coastal defenses, highlights their logistical importance. However, their depletion in Asia could limit the U.S. Air Force's ability to sustain operations against a peer adversary like China, where mass precision strikes would be essential. The technological and logistical strain of this dual-front challenge is compounded by production realities. The U.S. defense industrial base, while robust, struggles to keep pace with wartime consumption rates.
Morocco World
07-04-2025
- Politics
- Morocco World
$1 Billion US Military Offensive in Yemen Fails to Deter Houthis Resistance
Rabat – Earlier this month, US media reported that America's military has spent nearly $1 billion in just three weeks of its war against the Houthis in Yemen, yet the operation has had only a 'limited impact,' according to three sources familiar with the military's progress. The offensive, which began on March 15, has reportedly already consumed hundreds of millions of dollars in munitions, including long-range weapons such as JASSM cruise missiles, Joint Standoff Weapons (JSOW), and Tomahawk missiles. The JASSM, developed by Lockheed Martin, is a precision-guided missile designed to strike well-defended high-value targets from a distance, while the JSOWs are GPS-guided glide bombs enabling the US military to hit targets from afar. Tomahawk missiles, primarily used by the US Navy, are capable of long-range strikes with precision, evading radar detection. On April 2, CNN also reported that the Pentagon had deployed at least six B-2 bombers to the Indian Ocean island of Diego Garcia, which constitutes 30% of the U.S. Air Force's stealth bomber fleet. The deployment was reported as a message to Iran amid 'rising tensions in the Middle East.' The B-2 bombers, known for their ability to evade radar, can carry both conventional and nuclear weapons, allowing them to strike heavily defended targets globally. Furthermore, additional aircraft carriers, fighter squadrons, and air defense systems are reportedly being moved into the Central Command region. Despite spending nearly $1 billion on the operation, aimed at one of the world's poorest nations, the Pentagon is expected to request additional funds from Congress to continue the offensive. The Pentagon has not publicly disclosed the exact impacts of the operation on the Houthis. While a US defense official claimed that several Houthi military sites had been destroyed and some leaders eliminated, it was also acknowledged that the Houthis had managed to fortify their positions and maintain their weapons stockpiles, although the full extent of these remains unclear. 'They've taken out some sites, but that hasn't stopped the Houthis from continuing to shoot at ships or down U.S. drones,' one source said to CNN. 'Meanwhile, we're burning through readiness — munitions, fuel, deployment time.' The Trump administration has not specified how long it plans to continue the offensive, but Trump has said that the bombing will persist until the Houthis stop their attacks on Red Sea shipping. Houthi military response Despite US Central Command describing the operation as a '24/7 operation,' the Houthis have not been deterred and continue to retaliate, including their attacks in response to Israel's genocide on Gaza. Since March 2025, the Houthis have shot down three MQ-9 Reaper drones, high-value unmanned aircraft, with two shot down within a few days of each other. This brings the total number of MQ-9 drone losses to at least 17 since Israel's offensive in Gaza began in October 2023. Each drone is reportedly valued at $30 million, meaning the total losses amount to more than $500 million. Brigadier General Yahya Saree, spokesperson for the Houthi military, claimed responsibility for shooting down the MQ-9 drones, explaining that the attacks were made to show solidarity with the Palestinian people and their 'noble and valiant resistance.' He stated that the drones had violated Yemeni airspace and were conducting hostile operations over al-Hudaydah, in western Yemen. On April 5, Trump shared footage on Truth Social of a US airstrike in Yemen, claiming it destroyed Houthi fighters. The video, posted on X, showed a large crater where what appeared to be a Yemeni tribal gathering had been. Trump baselessly claimed that the targeted gathering, consisting of about 70 people, was planning an attack, proclaiming, 'They will never sink our ships again.' Abdulrahman al-Ahnomi, a senior Houthi media official, dismissed Trump's claim, asserting that the victims were innocent Yemeni villagers, not fighters. 'The US president is showing off his terrorism before the world,' al-Ahnomi said on X. 'Targeting a tribal gathering is not a victory but a reflection of the US.'s failure to identify any real targets.' US airstrikes' widespread destruction Notably, the CNN article failed to Yemenis that were killed as a result of the strikes as well as the destruction of civilian infrastructure, including a cancer treatment facility under construction. The people of Yemen, living under a naval and air blockade imposed by a Saudi-led coalition since 2015, continue to suffer severe restrictions on food, fuel, and medical supplies, in violation of international humanitarian law. Despite this, the Houthis and the Yemeni people have maintained their support for Gaza and their efforts to end Israel's genocide – not only a moral duty but also a responsibility and a legal obligation under the Genocide Convention. According to a 2025 UNHCR report, around 4.5 million people — 14% of Yemen's population — are currently displaced, many multiple times over the years. Over 18.2 million people urgently need humanitarian assistance, and the risk of a large-scale famine is more acute than ever. Tens of thousands of Yemenis are already living in famine-like conditions, with an additional five million facing acute food insecurity. Apart from the attack on the tribal gathering, US airstrikes since March 15 have killed at least 70 Yemenis. Tags: air strikes in YemenDonald TrumpHouthisUnited StatesWestern media
Yahoo
29-03-2025
- Business
- Yahoo
Why Is the U.S. Air Force Buying $1.9 Billion in New Missiles From Lockheed Martin?
Big contract announcements at the U.S. Pentagon can clue investors in to the potential for lucrative stock wins from the companies that win those contracts. It doesn't always work this way, but it does sometimes. That's why I'm paying attention now to one of the biggest weapons contracts announced by the Department of Defense in recent weeks: A March 13 order from the Air Force instructing Lockheed Martin (NYSE: LMT) to proceed with production of order "Lot 23" of the Joint Air to Surface Standoff Missile (JASSM) and also order "Lot 9" of the Long-Range Anti-Ship Missile (LRASM), and to prepare for subsequent lots as well. Both these missile types have been requested by Ukraine for use in its defensive war against Russia. Additionally, both weapons systems fit within the Pentagon's plans to improve the United States' long-range strike capabilities in the Pacific theater. The Pentagon did not specify precisely how many missiles Lockheed will be building, and amounts appear to vary from lot to lot. However, a 2023 Defense Department document described the sizes of production lots as ranging from 550 to 810 missiles per JASSM lot, and from 120 to 240 missiles per LRASM lot. We also know much more precisely what the Pentagon plans to pay for these missiles: $1.9 billion. The Pentagon's contract announcement also clarifies that the production lots in question are part of a bigger rearmament project that has the Air Force ordering $5.2 billion worth of the missiles in total. And with three more production lots each anticipated for both the JASSM and the LRASM, it's likely the size of this contract -- and its value to Lockheed Martin -- will continue to grow. But precisely how much can contracts like these move the needle at a giant defense company like Lockheed, which did $71 billion in defense business last year, and recorded more than $5.3 billion in profits from it? That's actually harder to determine than you might think. Most years, Lockheed Martin's missiles and fire control division (MFC) is a pretty great business. From 2019 through 2023, according to data from S&P Global Market Intelligence, MFC rang up $7.8 billion in operating profit on $58.7 billion in revenue, earning an outstanding 13.3% operating profit margin on this part of its business. In the final quarter of 2024, however, something went seriously awry at MFC. Without warning, the company took an $804 million charge to earnings for this division -- and only this division. All on its own, this charge drove a 23% year-over-year decline in Lockheed's annual profit for 2024, despite revenues rising 5% last year, and MFC revenues in particular rising 13%. Lockheed blamed the decline on "$1.4 billion in losses on a classified program," about which it would say no more. Presumably, JASSM and LRASM are not part of this classified program ... because, well, we know what these missiles are called. They're not classified. And if these particular missiles are unconnected to what required Lockheed to take that charge last quarter, it makes sense to assume that higher production rates of them would still be good news for Lockheed, and that MFC will continue to produce its enviably high 13.3% operating profit margins for Lockheed Martin shareholders. At $1.9 billion in revenue, the two lots of missiles in question should contribute more than $250 million to Lockheed Martin's annual profit. I wouldn't necessarily call this an incremental increase in profits, however. As just two lots in a long string of missile lots previously delivered, these latest orders will more likely simply replace past orders, and keep the revenue stream flowing. That's still good news, of course. It's just probably not needle-moving news. For this reason, it leaves the way I value Lockheed Martin stock unchanged. Lockheed stock trades at 1.5 times trailing sales, which is slightly more than its average valuation over the past 20 years by that metric, (and therefore not a bargain). Its price-to-earnings ratio is a bit less than 20 -- again, this seems somewhat expensive in light of analysts' forecasts for 13% long-term earnings growth and its 3% dividend yield. Finally, its free cash flow is roughly equal to its net income at present, giving it a price-to-FCF ratio of 20. While I find none of these valuations alarmingly expensive, neither do any of them scream "cheap" to me. For the time being, I'll be passing on Lockheed Martin stock. Before you buy stock in Lockheed Martin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lockheed Martin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $672,177!* Now, it's worth noting Stock Advisor's total average return is 815% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 24, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy. Why Is the U.S. Air Force Buying $1.9 Billion in New Missiles From Lockheed Martin? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
18-03-2025
- Business
- Yahoo
F-16 Is Getting Massive Anti-Ship Missile Upgrade
The U.S. Navy is set to help integrate the AGM-158C Long-Range Anti-Ship Missile (LRASM) onto the F-16 Viper fighter, giving those jets a huge enhancement in anti-ship capability. This comes amid a larger U.S. push to expand the total number of platforms that can launch the stealthy LRASMs with a particular eye on helping to prepare for a potential major conflict in the Pacific. Naval Air Systems Command (NAVAIR) announced its intention 'to enter into sole source negotiations and subsequently award a Cost-Plus Fixed Fee (CPFF) Delivery Order (DO) to Lockheed Martin Corporation-Missiles Fire Control (LMMFC)' in a contracting notice posted online yesterday. 'The anticipated DO is for required integration and test support of the AGM-158C-1 missile on the F-16 aircraft platform.' The AGM-158C-1 is the main version of the LRASM in production now. A C-3 subvariant with roughly double the maximum range (approximately 600 miles versus 200-300 miles, based on publicly available information) and other improvements is now in development. LRASM is derived from the AGM-158 Joint Air-to-Surface Standoff Missile (JASSM) family. JASSM has already been integrated onto the F-16C/D. For U.S. Air Force F-16s, LRASM could be a particularly significant boon. The Viper does have an anti-ship cruise missile capability in the form of variants of the AGM-84 Harpoon, but it is unclear if any Air Force F-16 units have those weapons available and/or if they actively train to employ them. The Air Force is also in the process of acquiring examples of the Joint Strike Missile (JSM), a newer cruise missile with anti-ship and land attack capability, but only to arm its F-35A Joint Strike Fighters, at least so far. More importantly, the AGM-158C is also a stealthy design, which the Harpoon is not, and has an array of other advanced features, including highly autonomous route-planning capability supported by an onboard electronic support measures (ESM) suite. As such, LRASM can automatically alter its course in response to the sudden appearance of threats, as well as better find its target via its radio-frequency emissions. In the terminal phase of flight, the missile switches over to a passive imaging infrared sensor that does not pump out radio-frequency emissions for the enemy to detect and is immune to radio-frequency jamming, unlike Harpoon's active radar seeker. The imaging infrared seeker visually differentiates targets based on information in an onboard database, which allows it to zero in on a ship's most vulnerable spot, as well. LRASMs can receive additional threat updates and other targeting data from offboard sources while in flight via a two-way datalink, which also allows the missiles to work cooperatively for more coordinated strikes. Interestingly, NAVAIR's notice about integrating LRASM on F-16 also follows an Air Force announcement last month about a test of the communications gateway system designed to help speed up the integration of new weapons onto the Viper. The 53rd Test and Evaluation Group's Detachment 3 used a Navy XATM-84N-1, an inert subvariant of the AGM-48N Harpoon Block II+ missile, to demonstrate the gateway's capabilities. The Harpoon Block II+ is currently in service with the Navy, but not the Air Force. 'The gateway functioned as a translator, enabling the F-16 to recognize the Harpoon and the Harpoon to receive signals from the F-16,' according to an Air Force release. 'Leveraging the gateway approach, the 53rd TEG team expedited the integration process, significantly reducing the timeline and demonstrating a faster, more efficient method of adding new weapons capabilities to the aircraft.' 'Our primary objective was to demonstrate that rapid weapons integration on U.S. Air Force platforms can be achieved efficiently by modifying middleware, without necessitating extensive updates to the aircraft itself,' an unnamed project manager said in an accompanying statement. 'This test paves the way for future projects across various platforms and weapons systems, offering leaders expanded options for operational and contingency planning.' Though AGM-158C was not explicitly mentioned in this context, the new communications gateway might help speed up the integration of LRASM onto the F-16. As noted, there has already been a clear push to expand the number of available AGM-158C launch platforms across the U.S. military. Currently, Navy F/A-18E/F Super Hornets and Air Force B-1 bombers are the only aircraft clear to employ the missile. However, work is underway now to add LRASM to the arsenals of the P-8 Poseidon maritime patrol plane and the B and C variants, at least, of the F-35 Joint Strike Fighter. In January, NAVAIR put out another contracting notice about plans to integrate the stealthy anti-ship cruise missiles onto Air Force F-15E Strike Eagle and F-15EX Eagle II combat jets. The U.S. military is interested broadly in expanding its air-launched anti-ship capabilities and capacity, particularly as part of efforts to prepare for a potential high-end fight against China in the Pacific. Just last week, the Air Force awarded Lockheed Martin a modification to an existing contract, valued at nearly $122.6 million, to help step up production of both LRASMs and JASSMs. There are broader concerns about the adequacy of U.S. stockpiles of standoff munitions, as well as the ability to replenish them during a sustained conflict, especially a large-scale one against an opponent like China. The price point of weapons like the LRASM, which has a unit cost of around $3 million, as well as the long lead times required to source the complex components that go into them, has also been driving interest in lower-cost options, including for anti-ship use. For LRASM, integrating the missile onto the F-16, variants of which are in widespread service globally, and with a still-growing number of total operators, could also open up new export opportunities. Though when exactly F-16s might start flying operationally with LRASM is unknown, the Viper's anti-ship capabilities are now set to get a significant boost. Contact the author: joe@
