Lockheed Martin announced a new $1.1 billion contract to deliver 18 missile‑tracking satellites for the U.S. Space Development Agency’s (SDA) Tranche 3 Tracking Layer constellation. The satellites will be built at Lockheed’s SmallSat Processing & Delivery Center in Colorado and will provide infrared‑sensor‑based missile‑warning, tracking, and defense capabilities that convert fire‑control‑quality tracks into actionable engagements for U.S. forces.
The contract is a key component of the SDA’s Proliferated Warfighter Space Architecture, a low‑Earth‑orbit network designed to give the U.S. military a resilient, layered missile‑defense and communications capability. By adding 18 more satellites, Lockheed expands its role in the architecture and strengthens the U.S. ability to detect and track conventional and hypersonic missile threats in real time.
Lockheed’s backlog of space‑defense contracts has reached a record $179 billion, and the new award brings the total number of SDA space vehicles to 124. The additional revenue stream is expected to reinforce the company’s long‑term growth strategy in the space‑defense sector and support the expansion of its small‑satellite production capacity.
In its most recent earnings report, Lockheed posted Q3 2025 sales of $18.6 billion, up from $17.1 billion in Q3 2024, and net earnings of $1.6 billion. The company’s strong performance was driven by high‑margin defense contracts and disciplined cost management, which helped offset inflationary pressures in other segments. The new contract adds a recurring, high‑value revenue source that aligns with the company’s focus on high‑return verticals.
Lockheed’s leadership emphasized that the award demonstrates continued confidence from the U.S. government in the company’s small‑satellite production and rapid‑deployment capabilities. The company’s strategy to invest in high‑margin space‑defense contracts and maintain a robust backlog positions it to capture future opportunities in the expanding low‑Earth‑orbit defense market.
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