Lockheed Martin Completes $3.45 Billion Acquisition to Expand Maritime Capabilities
Key Facts
Lockheed Martin completed its acquisition of Ultra Maritime on October 26, 2026, in a deal valued at $3.45 billion that adds a broader range of undersea warfare and anti-submarine capabilities. The company announced the closing about 3 months after signing the definitive agreement, which was announced on July 6. Stephanie Hill, president of Lockheed Martin’s Rotary and Mission Systems business, said the deal will help the company meet “the urgent and growing demand from our partners for undersea warfare capabilities around the world.” The closing places the new business within Rotary and Mission Systems and expands the company’s presence in maritime systems and maritime sensing.
Ultra Maritime’s products extend beyond the sonar systems highlighted in initial coverage of the deal. Its portfolio includes sonobuoys, towed sonar arrays, hull-mounted sonar products, as well as torpedo defense systems, radar and electronic warfare solutions, and autonomous maritime sensing platforms. Lockheed Martin says these products will strengthen its ability to deliver sonar solutions across next-generation maritime platforms. The July announcement also described the company as specializing in undersea warfare and anti-submarine capabilities for allied naval forces. When the agreement was announced, Hill said the company’s addition would accelerate Lockheed Martin’s commitment to delivering advanced capabilities in both areas to U.S. partners and allies around the world.
The deal will be funded with Lockheed Martin’s available cash, according to its quarterly filing with the U.S. Securities and Exchange Commission. The announcement came as the company reported sales of $20.7 billion in the third quarter of 2026, up 11% from the same period a year earlier, and net earnings of $1.8 billion, up 14%. By contrast, free cash flow fell to $3.0 billion in the third quarter, from $3.3 billion in the same period of 2025, while cash from operations declined to $3.4 billion from $3.7 billion. These figures put the acquisition financing in the context of quarterly results that combined sales and earnings growth with lower cash flows than a year earlier.
Lockheed Martin’s backlog reached a record $292 billion at the end of the third quarter, up 27% from the second quarter of 2026. The balance reflects the volume of work awaiting execution, while Ultra Maritime adds a range of maritime products to the company’s existing portfolio. In its results, Chairman and Chief Executive Jim Taiclet said the company is seeking to continually improve mission performance by combining proven systems with digital technologies, including artificial intelligence and autonomy. The acquisition is part of the company’s effort to expand its maritime capabilities, while the record backlog supports the picture of strong demand for its business.
Lockheed Martin raised its 2026 sales outlook to a range of $80–82 billion, compared with its previous forecast of $79.75–81.75 billion in July. The company’s shares closed at $636.95 on October 30, according to EL7 data. The acquisition closing was announced on the same day the company reported its quarterly results, while the original agreement dates to July. When it signed the agreement, Lockheed Martin said the deal would support its undersea warfare and anti-submarine capabilities for allied naval forces.