Lockheed Martin Wins $224M Navy Sonar Contract Modification

Lockheed Martin secured a $224M sonar contract modification from the Navy, further expanding its presence in naval systems.

LMT Lockheed Martin secured a $223.9 million modification to its AN/SQQ-89A(V)15 Surface Ship Undersea Warfare (SSUW) contract on June 15, awarded by the Naval Sea Systems Command. The system provides integrated anti-submarine warfare, counter-mine, and anti-torpedo capability for Arleigh Burke-class destroyers, combining hull-mounted sonar, towed arrays, and multi-function signal processors.

Work will be performed primarily in Manassas, Virginia (65%) and Clearwater, Florida (32%), with a small Canadian Foreign Military Sales component. The period of performance runs through September 2027. This is one of a recurring series of modifications on the same contract line: NAVSEA has awarded Lockheed Martin prior modifications of $100M, $180M, $197M, and $502M, confirming Lockheed as the sole-source incumbent for this critical Navy program.

The contract reinforces LMT's position as the Navy's cornerstone provider for surface ship undersea warfare systems. With the U.S. Navy prioritizing anti-submarine capability amid heightened great-power competition, the AN/SQQ-89A program is expected to continue generating steady, long-cycle revenue for Lockheed's Rotary and Mission Systems segment. The modification has no immediate material impact on annual revenue but underscores the durability of Lockheed's classified defense contract backlog.