Lockheed Martin To Ramp AIM-260 Production Under New US Defense Agreement – A Look At The Key Highlights

The AIM-260 is an air-dominance missile with greater range and effectiveness than existing air-to-air weapons, and is compatible with multiple Air Force and Navy aircraft, including the F-22 Raptor and F-35 Lightning II.

• Lockheed Martin will make the necessary investments to support higher production under the agreement.
• Lockheed Martin said the potential arrangement would provide long-term demand, strengthening and expanding the defense industrial base supporting the program.
• Australia recently announced nearly $736 million to equip its Royal Australian Air Force with JATM.

Lockheed Martin (LMT) has signed a framework agreement with the U.S. Department of War to rapidly increase production and delivery of its AIM-260 Joint Advanced Tactical Missile. The agreement also establishes the foundation for a multiyear procurement contract that is pending Congressional approval.

LMT shares traded marginally in the green in Thursday premarket trading at the time of writing.

Lockheed Martin produces JATM in partnership with the U.S. Air Force and U.S. Navy and will support the investments needed to drive the production increase under the agreement.

Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said the agreement builds on years of collaboration to deliver air-dominance capability to the warfighter.

JATM Designed For Multiple Aircraft

Lockheed Martin describes the AIM-260 as an air-dominance missile with increased range and effectiveness compared with existing air-to-air weapons. The missile is compatible with multiple Air Force and Navy aircraft, including the F-22 Raptor and F-35 Lightning II.

Lockheed Martin said JATM provides an asymmetric advantage to the joint force and is designed to address current and projected enemy air threats.

Multiyear Procurement Awaits Approval

The framework agreement forms the foundational agreement for a multiyear procurement contract, pending Congressional approval. Lockheed Martin said the potential arrangement would provide long-term demand, strengthening and expanding the defense industrial base supporting the program.

The company said the agreement is another direct outcome of the Department of War’s Acquisition Transformation Strategy, which aims to modernize the U.S. defense acquisition process.

Australia Announces Nearly $736M JATM Investment

Australia recently announced a nearly $736 million investment to equip the Royal Australian Air Force with JATM. The missiles will initially be integrated onto Australia’s F/A-18F Super Hornet, followed by the F-35A Lightning II and EA-18G Growler. Australia will be the first country outside the U.S. to operate the AIM-260 JATM.

The acquisition will complement Australia’s existing air-to-air missile capabilities and other surface-based missile systems across the Australian Defence Force.

The company said the Australian investment provides a credible deterrent that supports the security of the United States and its allies.

What Retail Is Saying About LMT Right Now

Retail sentiment on LMT on Stocktwits was ‘bearish’ over the past 24 hours.

LMT stock has gained over 11% year-to-date.

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