Lockheed Martin Corporation Secures $328.5 Million Contract for Taiwan Sensor Systems
Lockheed Martin Corporation (LMT) announced on 1 January 2026 that it has been awarded an undefinitized letter contract with a ceiling value of $328.5 million from the United States Department of Defense and Foreign Military Sales (FMS) programs. The contract covers the production of Sniper, Infrared Search and Track (IRST), and Low Altitude Navigation and Targeting Infrared for Night (LANTIRN) hardware for fixed‑wing aircraft intended for the Taiwan Air Force.
Contract Details
| Item | Description | Value |
|---|---|---|
| Contract Type | Undefinitized letter contract | – |
| Ceiling Value | Total maximum value | $328,500,000 |
| Primary Deliverables | Sniper, IRST, and LANTIRN hardware | – |
| Intended Customer | Taiwan Air Force (Foreign Military Sales) | – |
The U.S. Pentagon confirmed the award on 31 December 2025, stating that the contract represents an “urgent operational need” for Taiwan. The contract is funded through $157.3 million in FMS funds and the remainder through U.S. defense procurement.
Impact on Lockheed Martin
- Revenue Growth – The new contract adds significant revenue potential in the mid‑term, aligning with the company’s strategy to expand its sensor and avionics portfolio.
- Portfolio Diversification – The inclusion of IRST and LANTIRN systems complements Lockheed Martin’s existing air‑combat capabilities, such as the AEGIS combat system and the F‑35 fighter program.
- Geopolitical Significance – Deliveries to Taiwan enhance the company’s presence in the Indo‑Pacific region and support U.S. defense policy objectives.
Recent Contract Activity
Lockheed Martin’s recent contract pipeline has included:
- $297.49 million cost‑plus‑incentive‑fee modification for AEGIS sustainment (30 December 2025).
- $92.8 million contract modification for AEGIS baseline 10 system integration (29 December 2025).
- A series of new orders totaling approximately $500 million secured in the final 48 hours of 2025, indicating a strong demand for its defense systems.
Company Fundamentals
| Metric | Value |
|---|---|
| Market Capitalization | $112.92 billion |
| 2025 Close Price | $483.67 |
| 52‑Week High | $516.00 |
| 52‑Week Low | $410.11 |
| P/E Ratio | 27.36 |
Lockheed Martin remains a leading global security company, specializing in research, design, and integration of advanced technology across space, telecommunications, electronics, aeronautics, and energy sectors. The recent award underscores its continued relevance in the defense industry and its capacity to meet urgent operational needs for allied partners.
