Oracle stock falls after report reveals thin margins in AI cloud business
LONDON - Defense contractors Lockheed Martin (NYSE:LMT) and BAE Systems (LSE:BAES), which has seen its stock surge nearly 49% year-to-date according to InvestingPro data, announced a strategic partnership on Tuesday to jointly develop uncrewed autonomous air systems.
The collaboration, revealed at the DSEI global defense conference in London, will combine the expertise of Lockheed Martin’s Skunk Works and BAE Systems’ FalconWorks research divisions to create modular autonomous systems with multiple launch capabilities. BAE Systems, with its robust market capitalization of $72.2 billion and strong revenue growth of 11.6% in the last twelve months, brings significant financial strength to the partnership.
The initial focus will be on developing electronic warfare and attack capabilities designed to complement existing crewed combat aircraft. The systems will be designed with flexibility for deployment from various platforms including air drop, ground launch, maritime launch, and wide-body logistic aircraft.
"We’re pleased to join forces with BAE Systems, combining our expertise in rapid prototyping and advanced development to deliver game-changing capabilities," said OJ Sanchez, vice president and general manager of Lockheed Martin Skunk Works.
Dave Holmes, managing director of BAE Systems’ FalconWorks division, added that the collaboration aims to "deliver disruptive capabilities that can make a real difference to our military customers at pace."
The announcement comes as military forces increasingly seek to develop mixed fleets of crewed and uncrewed assets to address evolving battlefield requirements. The partnership will emphasize cost-effective solutions that can be rapidly deployed.
According to the press release statement, the collaboration will leverage both companies’ capabilities in rapid design, prototyping, and advanced manufacturing to produce systems that can deliver a range of effects including disruptive capabilities. BAE Systems maintains a GOOD overall financial health score according to InvestingPro, which offers dozens more insights and metrics about the company’s performance and outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.