LMT - Lockheed Martin Wins a $2.3 Billion Weather Satellite Contract. That's Not Necessarily Good News.
2024-06-30 07:07:00 ET
Good news for Lockheed Martin (NYSE: LMT) investors: Last week, Lockheed announced a large follow-on order for government weather satellites. The National Oceanic and Atmospheric Administration (NOAA) asked the aerospace and defense giant to build it at least three, and potentially as many as seven, new next-generation Geostationary Extended Observations (GeoXO) sats. If all options are exercised, the total contract value will reach $2.3 billion.
Bad news for Lockheed Martin: That works out to $324.3 million per satellite.
Yes, you heard me right. Lockheed making $300 million-plus off of each weather satellite it sells the government could very well be bad news for this government contractor in the long term. Here's why.
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Lockheed Martin Wins a $2.3 Billion Weather Satellite Contract. That's Not Necessarily Good News.