Lockheed Martin to Modernize Air Force F-22 Raptor with Advanced Infrared Threat-Detection Sensors

Rhea-AI Summary

Lockheed Martin (NYSE: LMT) has secured a $270 million contract from the U.S. Air Force to integrate next-generation infrared defensive sensors on the F-22 Raptor. The upgrade includes the implementation of distributed embedded TacIRST sensors, known as the Infrared Defensive System (IRDS), designed to enhance aircraft survivability and lethality.

The company will manage IRDS integration not only on the F-22 but also on other platforms. This modernization effort aims to improve pilot mission survivability against current and future threats while maintaining U.S. air superiority through advanced threat-detection capabilities.

Positive

• Secured $270 million Air Force contract for F-22 sensor upgrades
• Potential for additional revenue through IRDS integration on other platforms
• Strengthens position in military aircraft modernization programs

Negative

• None.

Insights

Defense Technology Analyst

The $270 million contract for F-22 Raptor modernization marks a strategic advancement in maintaining U.S. air superiority. The integration of the new Infrared Defensive System (IRDS) represents more than just an upgrade - it's a important enhancement to America's premier air dominance fighter.

From a technical perspective, the distributed TacIRST sensors will significantly improve the F-22's ability to detect and track incoming threats across multiple spectrums. This is particularly vital as potential adversaries continue developing advanced air-to-air and surface-to-air weapons systems. The modernization program demonstrates the Air Force's commitment to keeping the F-22 fleet relevant against evolving threats.

For investors, this contract carries several important implications:

• It strengthens Lockheed Martin's position in the high-margin fighter modernization market
• The mention of "other platforms" suggests potential for additional contracts as this technology could be adapted for other aircraft
• The contract adds to Lockheed's robust $150 billion backlog, providing stable revenue visibility
• It reinforces Lockheed's technological leadership in advanced military aviation systems

Looking at broader market dynamics, this modernization effort aligns with increased defense spending among NATO allies and partners in response to evolving global security challenges. The contract also positions Lockheed Martin advantageously for future military aircraft upgrade programs, potentially creating additional revenue streams beyond the initial contract value.

Financial Analyst

While the $270 million contract represents just a fraction of Lockheed Martin's annual revenue, its strategic value extends beyond the immediate financial impact. The F-22 modernization program typically carries higher profit margins compared to new aircraft production, potentially contributing positively to the company's bottom line.

The contract's significance lies in three key financial aspects:

• It reinforces Lockheed's dominant position in the high-margin military aircraft modernization market
• The potential for technology adaptation across "other platforms" suggests additional revenue opportunities
• It demonstrates Lockheed's ability to secure complex, technical upgrade contracts that typically face competition

From a competitive standpoint, this award strengthens Lockheed's position as the premier contractor for advanced military aircraft systems. The company's deep understanding of the F-22 platform and expertise in sensor integration creates high barriers to entry for competitors, potentially leading to follow-on contracts and sustained revenue streams in the aircraft modernization segment.

ORLANDO, Fla., Jan. 22, 2025 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) has received a $270 million contract from the U.S. Air Force to integrate a system of next-generation infrared defensive sensors on the F-22 Raptor.  

The F-22 will soon feature a newly developed, distributed set of embedded TacIRST sensors developed by Lockheed Martin to enhance aircraft survivability and lethality, known as the Infrared Defensive System (IRDS). In addition to managing integration of IRDS on the F-22, the company will also support integration on other platforms.

"We understand the need for advanced and versatile infrared systems like IRDS that will make pilots' missions more survivable and lethal against current and future adversaries," said Hank Tucker, vice president of Missions Systems at Lockheed Martin. "We're committed to supporting the Air Force through continuous innovation of capabilities to deter and defeat evolving threats."

Justin Taylor, vice president, F-22 program at Lockheed Martin added: "Lockheed Martin is proud to continue partnering with the Air Force on essential modernization efforts for the Raptor, leveraging our expertise in 5th Generation aircraft and air dominance systems to integrate capabilities that ensure uninterrupted U.S. air superiority today and into the future."

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 Lockheedmartin.com.

 

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SOURCE Lockheed Martin Aeronautics

FAQ

What is the value of Lockheed Martin's F-22 sensor upgrade contract (LMT)?

Lockheed Martin (LMT) received a $270 million contract from the U.S. Air Force for F-22 Raptor sensor upgrades.

What new technology is Lockheed Martin (LMT) adding to the F-22 Raptor?

Lockheed Martin is adding the Infrared Defensive System (IRDS), which includes TacIRST sensors for enhanced threat detection and aircraft survivability.

Will Lockheed Martin's IRDS technology be used on other aircraft besides the F-22?

Yes, according to the announcement, Lockheed Martin will support IRDS integration on other platforms beyond the F-22 Raptor.

How will the new IRDS system improve the F-22's capabilities?

The IRDS system will enhance the F-22's survivability and lethality through advanced infrared threat detection capabilities against current and future adversaries.