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STRATFORD, Conn. and HOUSTON - Sikorsky, a Lockheed Martin company (NYSE:LMT), a prominent player in the Aerospace & Defense industry with a market capitalization of $109.43 billion, and Bristow Group Inc. (NYSE:VTOL) have announced a comprehensive long-term agreement to enhance support for Bristow’s extensive S-92 helicopter fleet. According to InvestingPro analysis, Lockheed Martin currently trades near its Fair Value, maintaining strong financial health with a FAIR rating. The deal extends into the next decade and involves Sikorsky’s Total Assurance Program (TAP), which aims to help Bristow manage its operational costs by providing a set budget for aftermarket support.
The partnership between Sikorsky and Bristow, a leading provider of vertical flight solutions, is set to bolster the operational readiness of Bristow’s S-92 fleet, which is utilized for offshore energy operations and search and rescue missions across the globe. Lockheed Martin, with annual revenue of $71.81 billion and a solid dividend yield of 2.85%, has demonstrated consistent financial strength, having raised its dividend for 22 consecutive years. For deeper insights into LMT’s financial performance and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks. The TAP package includes a Power-by-the-Hour agreement, covering over 90% of parts replacement costs, and access to Sikorsky’s global support network, including stocking locations and field service representatives.
Leon Silva, Sikorsky’s vice president, expressed pride in the ongoing collaboration with Bristow, highlighting the S-92’s high availability rates and the aircraft’s performance in the demanding offshore energy sector. Bristow’s Chief Operating Officer, Stu Stavley, emphasized the agreement’s role in maintaining service levels while improving efficiency.
The S-92 has recently seen technological advancements, such as the Phase IV main gearbox with an auxiliary lubrication system, which is pending FAA certification in 2025. This upgrade, along with increased inspection intervals and a one-time life extension for gearbox housings, is designed to reduce downtime and extend service life, translating to more operational time for the aircraft.
This agreement reflects Sikorsky’s commitment to the commercial market and the S-92 platform, which is increasingly used in deepwater operations. The deal is based on a press release statement and includes forward-looking statements subject to risks and uncertainties.
Investors are advised to consider the risks associated with such forward-looking statements, which include a wide range of factors such as supply chain disruptions, reliance on limited manufacturers, public health crises, and global market conditions affecting the oil and gas industry. While Lockheed Martin operates with moderate debt levels and maintains strong profitability metrics, InvestingPro subscribers can access additional risk metrics, real-time valuations, and expert analysis to make more informed investment decisions. The information provided is based on current expectations and may change due to various risks and uncertainties.
In other recent news, Lockheed Martin reported its first-quarter earnings for 2025, surpassing market expectations with an earnings per share (EPS) of $7.28, significantly higher than the consensus estimate of $6.31. The company’s revenue also exceeded forecasts, reaching $18 billion compared to the anticipated $17.78 billion. Truist Securities maintained a Buy rating for Lockheed Martin, setting a price target of $579, while Bernstein held a Market Perform rating with a $533 target. Both firms highlighted the company’s strong financial performance and resilience despite not securing the Next Generation Air Dominance (NGAD) program.
Lockheed Martin confirmed its financial outlook for 2025, projecting mid-single-digit sales growth and maintaining a robust backlog anticipated to increase throughout the year. The company returned $1.5 billion to shareholders in the first quarter through dividends and share repurchases. Additionally, Lockheed Martin announced that Chief Financial Officer Kenneth R. Possenriede would be leaving the company to explore new opportunities. These developments indicate strong investor confidence in Lockheed Martin’s strategic direction and financial health.
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