Lockheed Martin Advances Construction on new Next Generation Interceptor Facility in Courtland, Alabama

Lockheed Martin (NYSE:LMT) is nearing completion of a new 88,000-square-foot Missile Assembly Building-5 (MAB-5) in Courtland, Alabama, with on-track completion by early 2026 and a formal grand opening to follow.

Rhea-AI Summary

Lockheed Martin (NYSE:LMT) is nearing completion of a new 88,000-square-foot Missile Assembly Building-5 (MAB-5) in Courtland, Alabama, with on-track completion by early 2026 and a formal grand opening to follow.

MAB-5 is purpose-built to produce the Next Generation Interceptor (NGI) for the Missile Defense Agency, emphasizing speed, producibility and repeatability using digital engineering tools including digital twins, model-based systems engineering and virtual testing. The Courtland site employs nearly 500 people, with about 100 employees projected for MAB-5 when fully operational; adjacent Troy facilities will support integration and large-scale manufacturing.

Positive

• Facility size: 88,000 sq ft purpose-built for NGI production
• Targeted completion: early 2026 for manufacturing start-up
• Headcount: ~100 employees to work in MAB-5 when operational
• Digital engineering: digital twin and virtual testing to reduce production risk

Negative

• None.

Argus Dec 10 session

+0.22% close to close Open Argus

Details

News Market Reaction – LMT

On Dec 10, the day this news came out, LMT closed 0.22% above the previous close.

Data tracked by StockTitan Argus for the Dec 10 session.

Key Figures

Q3 2025 sales: $18.609B Q3 2025 diluted EPS: $6.95 Q3 2025 operating profit: $2.280B +5 more

Q3 2025 sales

$18.609B

Quarterly total sales, up from $17.104B prior year

Q3 2025 diluted EPS

$6.95

Increased from $6.80 in prior-year quarter

Q3 2025 operating profit

$2.280B

Up from $2.140B in prior-year quarter

Nine-month 2025 sales

$54.727B

Up from $52.421B for prior-year period

Nine-month 2025 net earnings

$3.673B

Down from $4.809B prior-year period

Cash from operations

$5.338B

Nine months ended 2025

Share repurchases YTD

$2.3B

5.0 million shares repurchased year-to-date

Repurchase authorization

$9.1B

Board increased authorization by $2.0B in October 2025

Historical Context

5 past events · Latest: Dec 04

5 events

1. Dec 04

   AI demo flight

   24h Move

   +0.3%

   Live AI-driven mission contingency management demo using autonomous UAV systems.

2. Nov 26

   Conference appearance

   24h Move

   +0.4%

   CFO scheduled for Goldman Sachs conference fireside chat with webcast access.

3. Nov 19

   Drone control test

   24h Move

   -1.0%

   F‑22 pilot commanded an uncrewed aerial system via cockpit interface.

4. Nov 18

   CCA framework launch

   24h Move

   +0.8%

   Skunk Works introduced Vectis Group 5 collaborative combat aircraft framework.

5. Oct 29

   AI partnership

   24h Move

   -0.1%

   Strategic collaboration with Google Public Sector on on‑prem generative AI.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

next generation interceptor, digital twin, model-based systems engineering, virtual testing and validation, +1 more

5 terms

next generation interceptor technical

"facility that will support production of the Next Generation Interceptor (NGI)"

A next generation interceptor is an upgraded missile or defensive system designed to detect, track and destroy incoming threats such as ballistic or cruise missiles using newer sensors, guidance and countermeasure technology. For investors, it signals a company is developing higher-value, longer-term defense products that can win larger government contracts, carry higher development costs and regulatory scrutiny, and materially affect future revenue and risk profiles — like swapping a family sedan for a high-end security SUV.

digital twin technical

"with a digital twin approach that helps reduce risk across the product lifecycle"

A digital twin is a live virtual replica of a physical asset, process, or system that mirrors real-world behavior using data and models so users can test changes, predict problems, and measure performance without touching the real thing. For investors, digital twins matter because they can lower maintenance costs, speed product development, improve uptime and reliability, and make future cash flows and risks easier to forecast — like using a flight simulator to safely train and tune a real airplane.

model-based systems engineering technical

"Model-based systems engineering: The system is designed and optimized using digital models"

Model-based systems engineering is a way of designing complex products by creating and using shared digital models rather than relying mainly on separate documents. Like building from a detailed 3D blueprint or simulation that everyone can test and update, it helps catch problems earlier, speed development, and reduce costly surprises. Investors care because it can lower development costs, shorten time-to-market, improve reliability, and make regulatory or integration risks easier to manage.

virtual testing and validation technical

"Virtual testing and validation: The system is tested and validated using digital simulations"

Virtual testing and validation uses computer models and simulations to check how a product, system, or process will perform without building physical prototypes. Like a flight simulator or a virtual test drive, it lets designers find problems, save time and money, and refine designs before costly real-world tests; investors watch it because good virtual validation can shorten development timelines, reduce spending, and lower technical or regulatory risk, which affects a company's value.

data-driven decision making technical

"Data-driven decision making: Data and analytics are used to inform design decisions"

Using objective information and measured results to guide choices instead of relying on gut feelings or tradition, similar to picking a route with a GPS rather than memory. For investors, it matters because companies that base strategy, product changes and spending on clear evidence tend to allocate capital more efficiently, reduce costly mistakes and make performance easier to verify, which can affect profitability and risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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New 88,000-square foot facility represents a major investment in ability to produce revolutionary capability at scale and to meet the need for rapid delivery. 

COURTLAND, Ala., Dec. 10, 2025 /PRNewswire/ -- Lockheed Martin (NYSE:LMT) has announced construction on a state-of-the-art facility that will support production of the Next Generation Interceptor (NGI) is nearing completion.

The 88,000-square-foot Missile Assembly Building-5 (MAB-5) is on track for completion by early 2026, with a formal grand opening to follow.

This purpose-built facility is a critical piece of Lockheed Martin's commitment to delivering the NGI system to the Missile Defense Agency (MDA) with speed, reliability and precision. NGI is the future of homeland missile defense, designed to defeat evolving ballistic missile threats to the United States.

"We're building out nearly 100,000 square feet of manufacturing and production spaces in Courtland dedicated to the NGI program," said Johnathon Caldwell, vice president and general manager of Strategic and Missile Defense Systems at Lockheed Martin. "The new Missile Assembly Building represents a major investment in our ability to produce the NGI at scale and meet the government's need for rapid delivery."

Purpose-Built for Speed, Scale and Security

MAB-5 is designed with efficiency and repeatability in mind, incorporating best practices from high-reliability programs like the Terminal High Altitude Area Defense (THAAD) system. The NGI itself is designed for producibility, with a digital twin approach that helps reduce risk across the product lifecycle, from design through manufacturing to sustainment.

Lockheed Martin is applying decades of experience to its NGI production strategy, combining proven design and manufacturing techniques with next-generation digital engineering tools. The company has a strong legacy of delivering highly complex defense systems, and NGI continues that tradition.

Digital Engineering Drives Down Risk, Speeds Up Delivery

"Born digital," NGI leverages advanced modeling and simulation as part of its advanced engineering. It also means that Lockheed Martin has used advanced digital engineering tools and techniques to design, test and validate the system. This approach allows for:

• Digital twin creation: A digital replica of the system is created, which can be used to simulate and analyze its behavior, performance and interactions.
  
  
• Model-based systems engineering: The system is designed and optimized using digital models, which enables early detection and mitigation of potential issues.
  
  
• Virtual testing and validation: The system is tested and validated using digital simulations, reducing the need for physical prototypes and minimizing the risk of errors.
  
  
• Data-driven decision making: Data and analytics are used to inform design decisions, optimize performance and predict maintenance needs.
  
  
• Increased collaboration: Digital tools enable real-time collaboration and communication among stakeholders, including designers, engineers and manufacturers.

"This capability was designed for performance, but more importantly, it was also designed for manufacturability, reliability and speed," Caldwell said. "As the backbone to a multilayered integrated national defense system, producing NGI at speed is paramount to the mission."

Economic Growth Opportunities

The Courtland site currently supports several Army, Navy and Missile Defense Agency programs and employs nearly 500 people. Approximately 100 of those employees will work in MAB-5 once it becomes fully operational.

"The next generation of our nation's defense systems will include critical capabilities built in Courtland, Alabama, by hardworking men and women who will bring their skill, ingenuity and pride to protecting our country," said U.S. Rep. Dale Strong. "This new state-of-the-art facility will speed up production, create good-paying jobs and help drive economic growth in the community. Projects like this show that Courtland's best days are still ahead."

Lockheed Martin's adjacent facility in Troy, Alabama, will also play a key role in NGI production, supporting hardware integration and large-scale manufacturing. Together, the Troy and Courtland campuses represent the core of Lockheed Martin's commitment to national missile defense and industrial readiness.

About Lockheed Martin

Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security^® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.Lockheedmartin.com. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lockheed-martin-advances-construction-on-new-next-generation-interceptor-facility-in-courtland-alabama-302638239.html

SOURCE Lockheed Martin

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Lockheed Martin building in Courtland, Alabama for LMT and when will it be ready?

Lockheed Martin is finishing an 88,000-square-foot Missile Assembly Building-5 for NGI, on track for completion by early 2026.

How many jobs will the new MAB-5 facility support at LMT's Courtland site?

The Courtland site employs nearly 500 people today, and about 100 employees are expected to work in MAB-5 when fully operational.

How does Lockheed Martin plan to reduce risk and speed production of NGI for LMT?

NGI is being developed born digital using digital twins, model-based systems engineering and virtual testing to reduce physical prototypes and lower production risk.

What role will the Troy, Alabama campus play in LMT's NGI production?

The Troy facility will support hardware integration and large-scale manufacturing alongside the Courtland campus for NGI production.

Who is the customer for the NGI program mentioned in the LMT announcement?

The NGI system is being produced to support the Missile Defense Agency for homeland missile defense.