Lockheed Martin and Raytheon Joint Venture Secures $1.3 Billion Contract

(Reuters) – A joint venture between Lockheed Martin (NYSE:LMT) and RTX’s Raytheon (NYSE:RTN) has been awarded a $1.3 billion follow-on contract by the U.S. Army for its Javelin missiles, which have played a significant role in Ukraine’s defense against Russia’s invasion, Lockheed announced on Thursday.

This contract is part of a larger agreement awarded last year, which may total up to $7.2 billion for an indefinite quantity of missiles between 2023 and 2026.

Since the initial award, the joint venture has been increasing Javelin production, with aims to achieve an annual manufacturing capacity of approximately 4,000 missiles by late 2026.

The new contract includes the production of over 4,000 Javelins to replenish the stocks sent to Ukraine, according to the Maryland-based defense contractor.

Demand for U.S. weaponry, especially shoulder-mounted Javelin systems, continues to be high in Europe due to the ongoing conflict between Ukraine and Russia.