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Gotrade News - Lockheed Martin (LMT) has been awarded a $694M U.S. Air Force contract to produce the Air-Launched Rapid Response Weapon (ARRW), a hypersonic missile integrated on the B-52, according to Lockheed Martin's official release issued Tuesday, October 27, 2026, at 3:33 p.m. ET.
Regular-session close on October 27, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. Market cap: that close times the shares outstanding on the latest 10-Q or 10-K cover (SEC EDGAR).
What Lockheed Martin Announced
The contract covers production of ARRW, which the company described as the culmination of years of developmental and test partnership with the U.S. Air Force. According to the release, ARRW will travel at speeds greater than Mach 5, more than five times the speed of sound, to rapidly engage targets from significant standoff ranges.
Lockheed Martin said it broke ground on Tuesday on an expansion of Building P-20 in Troy, Alabama, that will add 47,000 square feet of production space for ARRW. The company said the expansion will triple the current facility's production space and generate new American jobs over the next four years, adding to its almost 4,000 employees in the state.
"The ARRW production contract award showcases Lockheed Martin's ability to develop and begin production on cutting-edge systems at unprecedented speed and scale," said Tim Cahill, president of Lockheed Martin Missiles and Fire Control.
Why It Matters for LMT
The company said ARRW brings sustained and maneuverable hypersonic capabilities to the U.S. Air Force and that its production readiness provides a critical capability to counter emerging threats. Cahill said ARRW "expands our weapon systems portfolio."
Lockheed Martin said it had already funded the efforts, materials and equipment required to start ARRW's production. According to the release, its $8-9 billion investment through 2030 to meet munitions demand includes a $67 million investment for ARRW production facility expansion and equipment, made prior to receiving government funding. The company describes itself as the leader in hypersonic strike capabilities, citing more than 60 years of hypersonic strike experience.
What to watch next: Lockheed Martin pays its fourth-quarter 2026 dividend of $3.60 per share on Thursday, December 31, 2026, to shareholders of record as of Tuesday, December 1, 2026.
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M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
