Stock Markets January 27, 2026

Lockheed Martin Wins $129.99 Million Contract to Support Australian C-130J Training Systems

Company to supply trainers and upgrade virtual systems for the Royal Australian Air Force under a firm-fixed-price Foreign Military Sales agreement

By Marcus Reed LMT
Lockheed Martin Wins $129.99 Million Contract to Support Australian C-130J Training Systems
LMT

Lockheed Martin Rotary and Missions Systems has been awarded a $129,986,060 firm-fixed-price contract by the U.S. Department of War to provide training systems and upgrades for the Royal Australian Air Force C-130J program. Work will be performed in Georgia and Australia and is due for completion by March 31, 2030. Separately, Lockheed Martin Space Mission Systems received a $10,188,893 modification to a weather program contract, lifting its value to $21,904,640 with work to finish by January 31, 2027.

Key Points

  • Lockheed Martin Rotary and Missions Systems won a $129,986,060 firm-fixed-price FMS contract to supply trainers and upgrade virtual training systems for the Royal Australian Air Force C-130J program.
  • Work for the C-130J training systems will be performed in Marietta, Georgia, and Richmond, Australia, with completion expected by March 31, 2030; the full contract amount was obligated at award.
  • Lockheed Martin Space Mission Systems received a $10,188,893 modification to the Mark IV-B weather program, raising that contract's value to $21,904,640, with work across multiple global bases and a January 31, 2027 completion date.

The U.S. Department of War announced on January 22, 2026 that Lockheed Martin Rotary and Missions Systems has secured a $129,986,060 contract to support the Royal Australian Air Force C-130J Maintenance and Aircrew Training Systems program. The award is structured as a Foreign Military Sales (FMS) effort and was issued as a firm-fixed-price contract.

Under the terms of the agreement, Lockheed Martin will deliver a suite of training hardware and software for the C-130J platform. Deliverables listed in the award include:

  • Two weapon system trainers
  • One database generation system
  • One enhanced-integrated cockpit system trainer
  • One loadmaster part task trainer
  • Upgrades to one virtual simulator
  • Upgrades to one virtual maintenance trainer

Work associated with this contract will take place in Marietta, Georgia, and Richmond, Australia. The Department of War indicated the contract was awarded via a sole source acquisition and that the full contract amount - $129,986,060 in FMS funds - was obligated at the time of award. The scheduled contract completion date is March 31, 2030.


In a separate contract action, Lockheed Martin Space Mission Systems received a $10,188,893 modification for the Mark IV-B weather program. That modification increases the total contract value to $21,904,640, up from $11,715,747.

The Mark IV-B work will be performed at multiple U.S. and overseas locations. Sites named in the announcement include Hickam Air Force Base in Hawaii, Andersen Air Force Base in Guam, Kadena Air Base in Japan, Ali Al Salem Air Base in Kuwait, Kapaun Air Base in Germany, Soto Cano in Honduras, Offutt Air Force Base in Nebraska, and Joint Base Elmendorf-Richardson in Alaska. The Mark IV-B program modification carries a scheduled completion date of January 31, 2027.

Contracting oversight for the space-system modification is provided by the Space Systems Command Directorate of Contracting at Peterson Space Force Base in Colorado. At the time of award, $5,917,383 in fiscal 2026 operations and maintenance funds were obligated to the contract modification.

Both actions were described in the Department of War's contract announcements as discrete procurements with specified funding obligations and scheduled completion timelines. The first award is a sole source FMS acquisition for Australia, while the second is a contract modification expanding the value and scope of an existing weather program engagement for Lockheed Martin Space Mission Systems.

Risks

  • Schedule risk tied to the March 31, 2030 completion target for the C-130J training systems, as set out in the award.
  • Execution complexity for the Mark IV-B weather program given the number of geographically dispersed work locations listed.
  • Reliance on specific fiscal-year funding streams - the C-130J award and the Mark IV-B modification each cite obligated funds at award, indicating continued funding management is a factor for program delivery.

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