Lockheed Martin Corporation (NYSE:LMT) is one of the best defense contractor stocks to buy right now. On March 25, 2026, Lockheed Martin (NYSE:LMT) and the Department of War announced a framework agreement to accelerate production of Precision Strike Missiles (PrSM). Building on last year’s $4.94 billion Army contract, the new plan will quadruple PrSM capacity, ensuring the U.S. maintains a decisive edge.
Jordan Tan / Shutterstock.com
Lockheed Martin is leveraging advanced technologies and its industrial base to deliver faster, more efficient production, while also creating thousands of skilled American jobs. The agreement could expand into a multi‑year deal lasting up to seven years, pending congressional approval.
PrSM, designed to replace the Army Tactical Missile System, offers extended range, improved lethality, and versatile deployment. The missile made its combat debut earlier in March during Operation Epic Fury, proving its deep‑strike capability.
Lockheed Martin has invested over $7 billion since 2017 to expand production of priority systems, including $2 billion dedicated to munitions. With more than 115,000 square feet of operations space and 400 employees already supporting PrSM, the company is scaling rapidly. CEO Jim Taiclet emphasized that Lockheed Martin is committed to delivering advanced precision fires to meet operational demand and strengthen U.S. deterrence against emerging threats.
On March 23, Sikorsky, a Lockheed Martin company, announced it had successfully tested and delivered the U.S. Army’s experimental UH-60MX Black Hawk helicopter fitted with its MATRIX autonomy suite.
The testing and delivery mark an important milestone in the pursuit of an open-architecture mission, supporting autonomy and piloted flight. The integration of the MATRIX Suite enhances mission effectiveness and survivability of warfighters. The suite also enables automated landing zone detection and obstacle avoidance to enable safe operations.
Additionally, the Lockheed Martin suite enables real-time terrain and obstacle awareness to help pilots and autonomous systems avoid threats. The open architecture on offer will reduce maintenance hours and pilot workload, allowing them to focus on mission-critical decisions.
Lockheed Martin Corporation (NYSE:LMT) is a premier global aerospace, defense, and technology company primarily focused on researching, designing, developing, and manufacturing advanced technology systems, products, and services.
While we acknowledge the risk and potential of LMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LMT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Robinhood Stocks with High Potential and 15 Best Forever Stocks to Buy Now.
Disclosure: None. Follow Insider Monkey on Google News.
