Lockheed Martin Secures Funding to Boost Production of Advanced Anti-Ship Missile

U.S. Air Force awards Lockheed Martin $53M to scale LRASM manufacturing, supporting a Pentagon plan to double annual procurement of key missiles to 1,000 units.

Lockheed Martin has been awarded a $53 million contract modification by the U.S. Air Force to scale up manufacturing capacity for its Long-Range Anti-Ship Missile (LRASM). This move supports a broader Pentagon strategy to double the annual procurement rate of the LRASM and the related Joint Air-to-Surface Standoff Missile, from approximately 500 units to 1,000.

Financial and Strategic Context

This latest contract modification, issued to Lockheed Martin’s Missiles and Fire Control division, will fund specialized tooling and test equipment required to achieve a higher production output. Work under this agreement will be performed in Orlando, Florida, and is scheduled for completion by November 30, 2028. The award increases the total value of the underlying contract to $462.9 million. It follows a similar $130 million modification issued in August 2024, which initiated the expansion effort.

The company’s stock has advanced roughly 27% since the start of the year, buoyed by rising global defense budgets and robust demand for advanced weaponry. Lockheed Martin’s leadership has provided guidance for 2026, forecasting revenue in the range of $77.5 to $80 billion and projecting free cash flow between $6.5 and $6.8 billion. The new LRASM contract aligns with this positive outlook, suggesting sustained demand for such systems amid ongoing geopolitical tensions and the need to replenish stockpiles.

Capabilities and Deployment

The LRASM is a stealthy, long-range precision weapon designed to engage heavily defended maritime targets. The subsonic cruise missile can strike at ranges exceeding 230 miles (approximately 370 kilometers) and is equipped with a 1,000-pound penetrator warhead. It is currently operational on the U.S. Air Force's B-1B Lancer bomber and the U.S. Navy's F/A-18E/F Super Hornet fighter aircraft. Integration efforts are also underway to certify the missile for use on the F-35 Lightning II.