BETHESDA, Md. - Lockheed Martin (NYSE: NYSE:LMT), the global aerospace and defense giant, has announced the completion of its acquisition of Terran Orbital, a prominent modular spacecraft manufacturer and its subsidiary, Tyvak International. This strategic move, initially revealed on August 15, 2024, aims to enhance Lockheed Martin's space capabilities through Terran Orbital's innovative technologies and agile manufacturing processes.
Terran Orbital is known for its customizable spacecraft platforms featuring interchangeable components, which, when paired with Lockheed Martin's expertise in mission system integration and payload, promise to deliver more robust space capabilities. The acquisition is expected to streamline the production process with automation and robotics, thereby increasing capacity and speed.
Robert Lightfoot, President of Lockheed Martin Space, expressed optimism about the merger, stating, "The addition of Terran Orbital's spirit of entrepreneurship to the scale of Lockheed Martin means there is a great deal of opportunity to keep pushing the boundaries of technology and space solutions together." He emphasized that the combined innovation and services would meet commercial, civil, and national security needs with a greater sense of urgency.
Terran Orbital will operate under Lockheed Martin's Space business area and will be recognized as Terran Orbital, a Lockheed Martin Company. Despite the acquisition, it will continue to serve as a merchant supplier to the industry, offering satellite design, production, launch planning, mission operations, and in-orbit support.
The company has a presence in several locations, including Boca Raton and Melbourne in Florida, Irvine and Santa Maria in California, Atlanta in Georgia, Tysons Corner in Virginia, and Torino in Italy.
Lockheed Martin, renowned for driving innovation and advancing scientific discovery in defense technology, expects the acquisition to accelerate the delivery of transformative technologies. However, it is important to note that forward-looking statements in the press release are subject to risks and uncertainties, and actual results may differ materially from expectations.
This news article is based on a press release statement issued by Lockheed Martin.
In other recent news, Lockheed Martin has had several notable developments. Jefferies maintained a Hold rating on the company, adjusting its price target to $580 from $590, following a third-quarter report that fell short of market expectations. Despite this, Lockheed Martin reported a modest 1% increase in sales for the quarter, with a 5% rise anticipated for 2024.
On the financial front, the company reported third-quarter earnings per share of $6.80, surpassing the estimated $6.50, and a slight increase in revenues year-over-year. Furthermore, Lockheed Martin increased its full-year 2024 revenue guidance by 0.4% to approximately $71.25 billion and its EPS forecast for 2024 by 1% to a midpoint of $26.65.
In addition, L3Harris Technologies (NYSE:LHX)' subsidiary, Aerojet Rocketdyne, has seen a significant surge in rocket motor production due to high demand from ongoing conflicts. The US Navy is also advancing plans to equip its ships with Patriot interceptor missiles, a strategic response to potential threats from China's hypersonic weapons.
These are recent developments that reflect the ongoing dynamics within the defense sector. Companies like Lockheed Martin continue to demonstrate resilience, as evidenced by their robust financial performance and record-breaking backlog of over $165 billion, driven by substantial orders for precision munitions.
InvestingPro Insights
Lockheed Martin's acquisition of Terran Orbital aligns with the company's strong market position and financial stability, as reflected in recent InvestingPro data. With a market capitalization of $129.61 billion, Lockheed Martin continues to be a dominant player in the Aerospace & Defense industry.
The company's revenue growth of 5.33% over the last twelve months and a solid EBITDA of $10.23 billion underscore its financial strength, which likely supported this strategic acquisition. Moreover, Lockheed Martin's operating income margin of 12.58% indicates efficient operations, a crucial factor when integrating new businesses.
InvestingPro Tips highlight Lockheed Martin's commitment to shareholder value. The company has raised its dividend for 22 consecutive years and currently offers a dividend yield of 2.41%. This consistent dividend growth, coupled with aggressive share buybacks, suggests management's confidence in the company's long-term prospects, including the potential benefits from the Terran Orbital acquisition.
It's worth noting that Lockheed Martin's P/E ratio of 19.73 is relatively high compared to its near-term earnings growth, which investors should consider when evaluating the stock's current valuation in light of this acquisition news.
For readers interested in a deeper analysis, InvestingPro offers 13 additional tips for Lockheed Martin, providing a comprehensive view of the company's financial health and market position.
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