Lockheed Martin Secures Strategic Australian Defense Contract

US defense contractor Lockheed Martin has further embedded itself within the security infrastructure of a key ally by securing a significant agreement in Australia. The company announced on Wednesday that it has selected Australian supplier Moog to develop a crucial system for its guided rocket program. This move highlights Lockheed Martin's ongoing strategy of establishing deep international partnerships rather than simply acting as an arms exporter.

Through its Australian subsidiary, Lockheed Martin Australia has awarded Moog Australia a contract to develop the guidance control system for the Guided Multiple Launch Rocket System (GMLRS). This agreement forms part of Australia's broader GWEO (Guided Weapons and Explosives Ordnance Enterprise) initiative, which aims to significantly expand the nation's domestic weapons manufacturing capacity.

Moog now joins an expanding network of Australian defense suppliers—including Thales, Marand, and AW Bell—that are participating in the GMLRS program. James Heading, Director of Lockheed Martin Australia, emphasized the critical importance of local industrial collaboration for establishing a resilient defense manufacturing base. The underlying strategy is evident: Lockheed Martin is positioning itself as an indispensable component of Australia's national security framework.

Solid Fundamentals Amid Market Pressures

Market reaction to the announcement was moderately positive, with shares opening 1.1% higher at $457.02. However, technical analysis reveals the stock continues to face headwinds, trading substantially below its 50-day moving average of approximately $484 and remaining distant from its 52-week peak.

Should investors sell immediately? Or is it worth buying Lockheed?

From a fundamental perspective, the corporation maintains a robust position. Lockheed Martin's most recent quarterly report, dated October 21, 2025, exceeded market expectations with revenue of $18.61 billion and earnings per share of $6.95. The company subsequently raised its full-year guidance and increased its dividend payment. Sustained global demand for defense equipment continues to drive Lockheed's business model, which relies heavily on long-term, stable government contracts.

Long-Term Strategic Positioning

While the Australian agreement might appear as an isolated contract at first glance, it aligns perfectly with Lockheed Martin's comprehensive global approach. By integrating itself into local supply chains, the defense giant not only secures political goodwill but also establishes durable revenue streams. Nations seeking to develop sovereign defense capabilities require established partners like Lockheed Martin—creating valuable long-term dependencies.

Market analysts currently maintain a predominantly "Hold" rating on the stock. Investors await the next quarterly report, anticipated for late January 2026. The central question remains whether Lockheed Martin can reverse its current downward trajectory, or if the stock will continue facing pressure despite its strong underlying financial performance.