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Lockheed Receives $534M Navy Contract Modification for Hypersonic Missile Development Work

Lockheed Martin (NYSE: LMT) has secured a potential one-year, $534 million contract modification from the U.S. Navy to provide systems engineering, development and testing support services for the Conventional Prompt Strike program.

The Department of Defense said Wednesday the cost-plus-incentive-fee contract modification includes an optional line item that could bring the contract’s value to $570 million if exercised.

Lockheed’s space business will perform work in Colorado, California, Massachusetts, Alabama, Utah, New York, Pennsylvania and Connecticut through June 19, 2025.

The Navy’s Strategic Systems Programs will obligate $115 million using the service branch’s research, development, test and evaluation funds for fiscal year 2024.

The Conventional Prompt Strike program seeks to build and test a hypersonic boost-glide missile that could rapidly deliver precision-guided strike capability against enemy defenses.

In August 2023, Lockheed Martin Space secured a $316 million contract modification from the Navy for continued work on the CPS program.

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