Lockheed Martin Secures $92.8M AEGIS Sustainment Contract from U.S. Navy

Lockheed Martin Rotary and Mission Systems has received a $92.8 million contract modification from the U.S. Naval Sea Systems Command to provide ongoing AEGIS system sustainment services for allied navies in the Asia-Pacific region. The cost-plus-incentive-fee modification expands a previously awarded contract and underscores Lockheed Martin’s continued role as a key defense partner supporting advanced naval combat systems worldwide.

The contract focuses on sustainment of the Advanced Electronic Guidance Information System (AEGIS), a critical naval combat system used for air and missile defense. Under this agreement, Lockheed Martin will support AEGIS operations for Australia, Japan, and the Republic of Korea, ensuring system reliability, performance, and long-term readiness. All work will be carried out at Lockheed Martin’s facility in Moorestown, New Jersey, with completion scheduled for December 31, 2026.

Funding under the contract will be allocated among the three partner nations, with Japan receiving the largest share at approximately $20.2 million, representing 50% of the total. Korea will receive around $14.9 million, accounting for 37%, while Australia will be allocated $5.3 million, or 13%. This distribution reflects each country’s scope of in-service AEGIS sustainment requirements and operational needs.

The modification includes several options, such as Australia in-service AEGIS sustainment, Japan JB/3/6/7 in-service AEGIS sustainment, and Korea K2 in-service support. Additional elements cover Australia technical documentation as well as Foreign Military Sales-related direct costs and travel. These services are designed to enhance system availability, technical support, and lifecycle management for AEGIS-equipped vessels.

Awarded on December 22, 2025, the modification applies to the original contract N00024-23-C-5123. Importantly, the obligated funds will not expire at the end of the current fiscal year, providing long-term financial flexibility. This contract reinforces Lockheed Martin’s position in global defense sustainment and highlights continued U.S. Navy collaboration with key international allies.