Leidos Taps X-Bow Systems to Supply Rocket Motors for Army Missiles
Defense contractor Leidos Holdings, Inc. (NYSE:LDOS) has selected privately held X-Bow Systems to design and manufacture booster motors for the U.S. Army's Low-Cost Containerized Munition program. Under the agreement, Albuquerque-based X-Bow will handle motor design, qualification testing, and static-fire testing. Financial terms were not made public.
The partnership supports efforts by Leidos Holdings, Inc. to increase production of affordable precision weapons for the Pentagon. Under the Defense Department's Arsenal of Freedom initiative, Leidos previously outlined plans to produce an initial batch of 3,000 containerized munitions. The deal marks another step in the defense company's expansion into missile manufacturing as military planners seek to build up domestic munitions capacity and rely less on higher-cost missile platforms. Shares of Leidos rose 2.06% to $121.70 today, though the stock remains down 33% year-to-date through Oct. 9.
Investors will be watching how efficiently the agreement transitions into full-rate production, which is scheduled for 2027. Because neither business disclosed contract pricing or anticipated revenue, the ultimate contribution to earnings will depend on execution, contract terms, and production volumes.
Key points
- Leidos Holdings, Inc. selected X-Bow Systems to design and manufacture booster motors for the U.S. Army's Low-Cost Containerized Munition program.
- X-Bow Systems will carry out motor design, qualification testing, and static-fire testing ahead of planned full-rate production in 2027.
- Financial details were not disclosed, making the overall revenue impact for Leidos currently uncertain.
- Leidos previously planned to manufacture an initial 3,000 munitions under the Defense Department's Arsenal of Freedom initiative.
- Shares of Leidos (NYSE:LDOS) gained 2.06% to $121.70 today, though the stock has dropped 33% year-to-date through Oct. 9.
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How we writeDisclaimerQuestions and answers
Why did Leidos select X-Bow Systems?
Leidos chose X-Bow Systems to design, test, and manufacture rocket booster motors for the U.S. Army's Low-Cost Containerized Munition program as part of its effort to expand precision weapons production.
When will full-rate production begin for the LCCM rocket motors?
Full-rate production of the booster motors is scheduled to begin in 2027 following design, qualification testing, and static-fire testing by X-Bow Systems.
What are the financial terms of the agreement between Leidos and X-Bow?
The financial terms and overall contract value were not publicly disclosed by either company, leaving the direct impact on Leidos' earnings uncertain.