Lockheed Martin LMT continues to expand its defense business beyond aircraft manufacturing, with a new contract highlighting the growing role of training and simulation solutions in military modernization.
On Oct. 8, 2026, Lockheed Martin announced that it had signed a Direct Commercial Sale contract with the Philippine Department of National Defense to provide advanced training equipment and services for the Philippine Air Force. The agreement includes an S-70i Black Hawk Full Flight Simulator, a Virtual Maintenance Trainer and associated courseware. The contract also covers sustainment and spare-parts support through 2032.
The Philippines operates Black Hawk helicopters for various missions, including search and rescue, humanitarian assistance, firefighting and troop transport. The full-flight simulator replicates the sights and sensations of flying a Black Hawk, allowing pilots to practice procedures and mission scenarios in a simulated environment. Meanwhile, the Virtual Maintenance Trainer uses detailed, physics-based models of aircraft systems, including hydraulics and avionics, to help maintenance personnel develop technical skills in a risk-free setting.
The contract is also strategically significant because it represents the first order for Lockheed Martin’s S-70i Black Hawk training devices. LMT uses digital-twin technology to replicate aircraft systems and configurations, helping maintain realistic training environments as aircraft capabilities evolve. The agreement could strengthen LMT’s position in the military training market by extending its relationship with customers beyond aircraft procurement into training, maintenance and sustainment.
LMT will continue to train Philippine Air Force Black Hawk pilots at its U.S.-based Sikorsky Training Academy while the country establishes its domestic training capability. This approach supports the transition toward localized training and maintenance operations.
Defense Companies Benefit From Military Modernization
Increasing defense modernization requirements are creating opportunities for aerospace and defense companies across aircraft manufacturing, mission systems and training technologies. Some industry participants operating in these markets are discussed below:
RTX Corporation RTX provides advanced defense systems, including missile systems, sensors and other technologies used in military operations. Its broad defense portfolio positions it to participate in modernization programs focused on improving military capabilities.
Northrop Grumman NOC develops advanced defense technologies spanning aerospace systems, mission solutions and strategic deterrence. Its exposure to complex defense programs provides another example of how military modernization supports demand across the defense industry.
LMT Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 31.7% and 8.44%, respectively.
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LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.40X, a discount to the industry’s average of 2.07X.
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LMT Stock’s Price Performance
In the past three months, the company’s shares have lost 2% compared with the industry’s 14.8% decline.
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LMT’s Zacks Rank
The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).