Defense giant Lockheed Martin finds itself navigating a complex landscape of significant contract wins and substantial legal headwinds. While the company continues to secure major defense funding, a class-action lawsuit alleging investor deception casts a shadow over these achievements, creating a tense balance between operational success and legal vulnerability.
Major Defense Contracts Bolster Revenue
A series of substantial contract awards from the U.S. Department of Defense has significantly strengthened Lockheed Martin’s financial position in recent weeks. The company secured approximately $150 million through multiple new agreements and contract extensions, highlighting its entrenched role within American defense infrastructure.
The funding encompasses several critical defense domains:
- JASSM Missiles: A $29.4 million allocation for Joint Air-to-Surface Standoff Missile software, covering exports to allied nations including Australia, Finland, Japan, the Netherlands, and Poland
- Next-Gen GPS: $19.2 million dedicated to the development of the GPS III follow-on program
- Battle Command Systems: $43.8 million for integrated Battle Command System work
- F-35 Components: $34.3 million for initial spare parts for the advanced fighter jet
- Patriot System Support: $23.6 million allocated for engineering support services related to PAC-3 systems
Work on these projects will be conducted across Lockheed Martin facilities located in Texas, Pennsylvania, and Colorado.
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Class-Action Lawsuit Poses Significant Risk
This positive contract news is substantially offset by a serious legal challenge. The company faces a securities class-action lawsuit that accuses its leadership of misleading investors about the firm’s true financial health between January 2024 and July 2025.
The core allegation centers on Lockheed Martin’s purported failure to maintain adequate internal controls for risk assessment. According to the lawsuit, this deficiency led to a situation where investors remained unaware of potential for material losses within the company’s Aeronautics and Rotary and Mission Systems business segments. The subsequent disclosure of these issues allegedly triggered a sharp decline in the company’s stock price, causing significant financial harm to shareholders. The plaintiffs are now seeking substantial financial compensation for these losses.
Weighing Certainty Against Litigation Risk
The recent influx of government contracts underscores Lockheed Martin’s durable market position and the predictable revenue stream provided by multi-year budgeting and international partnerships. These factors provide a degree of medium-term financial visibility.
However, the ongoing litigation highlights potentially serious weaknesses in the corporation’s internal risk management protocols. For investors, the central question remains whether the certainty of government-funded revenue can adequately counterbalance the financial uncertainty and potential liabilities stemming from the class-action proceedings.
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