Lockheed Martin is expanding its missile defense operations in Fort Worth, capitalizing on a global shift toward air and missile protection. The company has secured long-term framework agreements with the U.S. government to ramp up manufacturing of key defense systems. These contracts cover the Patriot PAC-3 interceptor, the Terminal High Altitude Area Defense system, and the Precision Strike Missile.
Management anticipates that these new agreements will lead to a threefold to fourfold increase in production rates over the coming years. The contracts are designed to provide clearer demand visibility, which will support investments in production facilities, supplier capacity, and workforce expansion. This growth is part of a broader modernization cycle in global defense spending.
During the first quarter of 2026, the company's Missiles and Fire Control division reported an 8.2% year-over-year increase in sales. This rise was driven by higher production levels for integrated air and missile defense programs, including the PAC-3. Tactical missile programs such as the Joint Air-to-Surface Standoff Missile, the Long Range Anti-Ship Missile, and the Precision Strike Missile also contributed to the growth.
The defense sector is seeing increased investment from the United States and allied nations, which view integrated air and missile defense as a core national security objective. This trend supports sustained demand for Lockheed Martin's missile portfolio. Other defense contractors, including RTX Corporation and Northrop Grumman, are also positioned to benefit from rising missile demand through their respective roles in air defense and hypersonic technologies.
Financial analysts note that Lockheed Martin's stock trades at a forward price-to-sales ratio of 1.47 times, which is below the industry average of 2.54 times. Earnings estimates for 2026 and 2027 indicate year-over-year improvements of 29.5% and 8.02%, respectively. Over the past six months, the company's shares have declined by 11.8%, slightly outpacing the industry's 11.4% drop.
