NEW YORK, December 30, 2025, 23:22 ET — Market closed
- Lockheed Martin shares closed down 0.18% on Tuesday.
- The Pentagon disclosed roughly $500 million in contract modifications tied to Aegis ship systems and THAAD missile-defense sustainment.
- Investors now look to late-January earnings timing and early-2026 U.S. defense budget headlines.
Lockheed Martin Corp shares finished slightly lower on Tuesday after the Pentagon disclosed about $500 million in contract modifications tied to the contractor’s naval combat systems and missile-defense work.
The new awards matter now because investors are trying to gauge how reliably big defense primes can translate steady government spending into cash flow as 2025 ends and budget debates shift toward 2026.
They also highlight the role of foreign military sales and allied demand in Lockheed’s order pipeline. Foreign Military Sales is a U.S. government program that handles government-to-government weapons deals with allies.
Lockheed closed down 0.18% at $488.00. The broader market also dipped, with the S&P 500 down 0.14%, while defense peers RTX and Northrop Grumman fell 0.22% and 0.56%, respectively. Analysts tracked by Yahoo Finance put Lockheed’s one-year target estimate at $523.95. 1
The largest of Tuesday’s contract actions was a $297.5 million modification for in-service Aegis combat system sustainment and system integration work, the Defense Department said.
A second modification worth $60.1 million covers engineering integration, technical support and depot work for the MK 41 Vertical Launching System, a shipboard launcher used to fire multiple missile types. The Pentagon said options could lift the total value tied to that action to about $144.7 million.
A separate $142.6 million modification will fund continued maintenance and sustainment support for two Terminal High Altitude Area Defense, or THAAD, batteries for the United Arab Emirates, the Pentagon said. It described the THAAD work as a foreign military sales case and said the contract’s total value rose to about $876.7 million. 2
Contract modifications add work and funding to existing programs rather than launching new ones. In practice, they tend to show up in revenue over time as tasks are completed and billed.
For Lockheed, the mix underscores recurring sustainment and integration work across missile defense and naval systems—areas that often produce follow-on work after initial deliveries.
Before the next session, traders will also be watching whether the shares can regain momentum in year-end trade after staying below the $500 level on Tuesday. Lockheed traded between roughly $487 and $492 during the session, leaving the round-number mark in view for chart watchers.
Wednesday is also the final U.S. trading day of 2025, with Wall Street shut on Thursday for New Year’s Day. That can amplify moves driven by thinner liquidity and sector rotation.
The next clear company catalyst is Lockheed’s quarterly update. The company has not confirmed a date for its next earnings release, but Zacks expects results around Jan. 27. 3
Investors will be listening for 2026 outlook signals and any comments on the pace of foreign orders and sustainment demand. Until then, traders expect day-to-day headlines on Pentagon contracting and budget negotiations to remain the main swing factor for the stock.
