Lockheed Martin announced it has been awarded a $328.5 million foreign‑military‑sales contract to deliver 55 Legion Infrared Search and Track Enhanced Sensor pods to Taiwan’s Air Force. The contract, which obligates $157.3 million in U.S. foreign‑military‑sales funds, is expected to be completed by June 30 2031.
The sensor pods will augment Taiwan’s fighter aircraft with high‑resolution heat‑signature detection, filling a critical gap in the island’s air‑defense network. The deal reflects the U.S. commitment to Taiwan’s self‑defense amid escalating tensions with China, and it underscores Lockheed’s role as a key supplier to U.S. allies in the Indo‑Pacific.
For Lockheed, the contract adds a long‑term revenue stream that will be reflected in the company’s backlog and future earnings. The company’s 2025 guidance, raised in October to $74.25 billion–$74.75 billion in sales and $22.15–$22.35 in EPS, was driven by “unprecedented demand” from both U.S. and foreign customers, including this Taiwan deal.
The contract’s value is modest relative to Lockheed’s total annual sales, but its extended completion date through 2031 provides a steady source of income that complements the company’s high‑margin aeronautics and mission‑systems segments. Management highlighted that the deal demonstrates the company’s ability to secure high‑profile foreign‑sales contracts that reinforce its backlog and support continued investment in digital and AI capabilities.
Analysts note that Lockheed’s backlog has expanded to $70 billion, and the addition of the Taiwan contract further strengthens the company’s position in the Indo‑Pacific market. While the contract itself is a routine foreign‑military‑sales award, its timing and strategic context reinforce the company’s outlook for sustained demand in the coming years.
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