Lockheed Martin Secures Major Naval Contract Amid European F-35 Push

Lockheed Martin secures a U.S. Navy ASW contract worth up to $479.9M amid diplomatic push for F-35 sales in Europe. Q4 revenue beat expectations despite an earnings miss.

Defense contractor Lockheed Martin continues to strengthen its position within the arms industry, this time through a substantial new award from the U.S. Navy. This development coincides with growing diplomatic pressure in Europe for nations to adopt the company's F-35 fighter jet. The news provides a fresh context for evaluating the firm's recent quarterly performance, which presented a mixed financial picture.

Aviation Division Gains Traction in Europe

Separate from the naval sector, Lockheed's aeronautics business unit is generating significant discussion across the Atlantic. A recent report by The Straits Times highlights that the U.S. Ambassador to Portugal, John Arrigo, has publicly urged Lisbon to replace its aging fleet of F-16 aircraft with the advanced F-35 stealth fighter.

Ambassador Arrigo emphasized enhanced alliance interoperability as a key rationale, noting that over 900 F-35 jets are either already operational or on order throughout Europe. He further pointed to the program's substantial European industrial participation, stating that 25% of the aircraft's components are sourced from the continent.

Financial Performance and Shareholder Returns

Lockheed Martin's most recent earnings report revealed contrasting results. For the fourth quarter of 2025, the company posted earnings per share of $5.80, which fell short of the consensus estimate of $6.33, according to Ticker Report. Conversely, revenue outperformed expectations, reaching $20.32 billion—a 9.1% increase compared to the same period last year.

For income-focused investors, the dividend outlook remains consistent. The next quarterly dividend payment is set at $3.45 per share, scheduled for distribution on March 27, 2026. The record date is March 2, 2026, which is also the ex-dividend date. Based on this payout, DividendMax calculates the annualized dividend at $13.80 per share.

In equity markets, Lockheed Martin shares showed minimal movement on the day of the announcement, trading at €557.20, a slight decline of 0.25%. This follows a notable gain of 11.51% over the preceding 30-day period.

U.S. Navy Awards Multimillion-Dollar Anti-Submarine Warfare Contract

The new contract award, reported by GovCon Wire, involves the U.S. Navy and centers on the AN/SQQ-89A(V)15 submarine warfare system. Lockheed Martin secured a potentially five-year agreement to provide development, certification, and integration support for this technology.

The base contract value is $78.4 million, but the total potential value could reach up to $479.9 million if all contract options are exercised. The work will benefit not only the United States but also allied nations Japan and Australia. Initial services are contracted through February 2027, with the potential to extend through February 2031 should all options be activated.