Summary
- Lockheed Martin received $2.4B in contract awards including IDIQs.
- $392 million in funds were obligated on award.
- Lockheed Martin continues to win future-proof contracts.
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In November, Lockheed Martin (LMT) announced billions in potential contract value most notably for the C-130 transport aircraft. Shares of Lockheed Martin have been lacking some clear direction due to a combination of the election results, a conservative guidance and some money rotating out of defense toward names that were previously beaten down due to concerns about the pandemic and its impact. While defense budgets are indeed likely to level off in the coming years, possibly partially driven by the pandemic, we also are seeing Lockheed Martin continuing adding contracts. In this report, we analyze the contract awards for Lockheed Martin November 2020.
Source: Lockheed Martin
For this analysis, we used the TAF Defense Contracts Monitor, which we have made available to subscribers of The Aerospace Forum.
Lockheed Martin scores with missiles and satellites
Figure 2: Lockheed Martin contracts in November 2020 (Source: The Aerospace Forum)
Lockheed Martin received 17 contract awards in November 2020 including one indefinite delivery, indefinite quantity contract [IDIQ]. The potential value of all these awards is $2.4B with nearly $392 million or 16% of the contract value being obligated at the time of award. Month-over-month, the contract value climbed from $2B to $2.4B, but funds obligated fell from $908.7 million or 48% to $392 million. So there was an uptick in potential contract value and a significant downtick in funds obligated.
