Navy awards Lockheed Martin a $110.9 million contract amendment
In a significant development, Lockheed Martin Space, a subsidiary of Lockheed Martin Corporation (NYSE:LMT), has been granted a $110.9 million contract by the U.S. Navy for the continued production and deployed systems support of the Trident II (D5) missile. This contract, which runs through September 30, 2029, will see most of the manufacturing work concentrated in Magna, Utah, with additional work in parts of Florida.
The Trident II D5 is a crucial submarine-launched ballistic missile (SLBM) deployed on U.S. Navy Ohio-class and the UK’s Vanguard-class submarines, forming a core element of the U.S. and NATO nuclear deterrent strategy. This three-stage, solid-fuel missile is capable of carrying multiple independently targeted reentry vehicles (MIRVs), with a nominal range of about 4,000 nautical miles.
This contract is part of a larger strategic commitment by the U.S. Department of Defense to sustain and modernize its sea-based nuclear deterrent capabilities amid evolving global geopolitical dynamics. In early 2025, Lockheed Martin received a $383 million contract modification to advance the Trident II D5 Life Extension 2 (D5LE2) missile, intended to equip the forthcoming Columbia-class ballistic missile submarines. This follows a prior $2.1 billion contract from September 2024 for production and deployed systems support involving the missile and associated warhead systems.
The Trident II D5 remains a foundational element of nuclear deterrence, with continuous investments aimed at maintaining its reliability and effectiveness well into the future. This contract underscores Lockheed Martin’s robust and long-term commitment to the Trident II (D5) missile with the U.S. Navy, supporting strategic deterrence through at least the end of this decade.
Key Points:
- Contract value: Approximately $110.9 million
- Contract duration: Through September 30, 2029
- Major work locations: Magna, Utah; Clearwater and Titusville, Florida
- Missile capabilities: 3-stage, solid-fuel, MIRV-capable, ~4,000 nautical miles
- Contract type: Sole-source contract
- Contracting activity: Strategic Systems Programs, Washington, D.C.
This contract is not related to the post-earnings plunge or any potential buying opportunities for Lockheed Martin Corporation, nor does it involve any plans to buy the dip or any rating downgrades. Additionally, it should be noted that this contract is unrelated to the $4.23 billion U.S. Army contract modification received by Lockheed Martin, which pertains to a separate project.
The granted contract by the U.S. Navy to Lockheed Martin Space, a subsidiary of Lockheed Martin Corporation, is a strategic move within the defense industry, focusing on the continued production and support of the Trident II (D5) missile, a crucial component in the U.S. and NATO nuclear deterrent strategy. This contract, falling under the aerospace sector, also extends to business areas like finance, as it involves significant investments in maintaining the missile's reliability and effectiveness.
