Lockheed Martin agreed in July to pay $3.45 billion for undersea warfare specialist Ultra Maritime. The global defense technology firm specializes in anti-submarine warfare and next-generation undersea warfare solutions. The deal is expected to close in the fourth quarter of 2026, per documentation filed with the SEC in July – and when it does, Ultra will join Lockheed’s Rotary and Mission Systems business, which designs and manufactures advanced military naval combat systems.
It is a substantial purchase, with Ultra expected to generate around $784 million in revenue this year alone.1 Lockheed is paying roughly 4.4 times annual sales for the business and betting that Ultra’s established sonar products and manufacturing capacity will position it to continue capturing growing demand driven by the increasing strategic importance of undersea warfare and defense.
Lockheed Isn’t Starting from Scratch
The purchase does not constitute Lockheed buying its way into undersea warfare for the first time. In fact, it is already the lead systems integrator for the U.S. Navy’s AN/SQQ-89 undersea warfare system that combines sonar data and other sensors to classify and track submarines and underwater threats. Lockheed also built the integrated mission system used on the MH-60R Seahawk anti-submarine helicopter.
At RIMPAC this year, Lockheed also demonstrated new SensorMAX technology – an artificial intelligence system that processes acoustic information taken from multiple sonobuoys to help crews identify underwater targets.
Ultra gives Lockheed more of the hardware that feeds systems like SensorMAX. The company manufactures sonobuoys, hull-mounted sonar technologies, towed arrays, and torpedo countermeasures. Its output is large, too, with around 250,000 sonobuoys being produced annually, including models built to U.S., British, and Canadian specifications.
The acquisition, then, effectively gives Lockheed additional tools and established manufacturing capacity to continue expanding in an area where demand is already growing. It will also give the firm greater control over the chain that starts with detecting an underwater threat and ends with identifying and responding to it. Lockheed says that Ultra’s international presence and exportable anti-submarine warfare products will “complement and expand” its ability to provide sonar systems for next-generation maritime platforms.2
Four Reasons Undersea Warfare Is Getting Bigger
There are several signs that Lockheed is buying into a growing market rather than anticipating it will emerge.
- The U.S. Navy needs more sonobuoys. In its fiscal 2026 budget, roughly $330 million is allocated for sonobuoys, including an additional $80 million in reconciliation funding for 25,511 AN/SSQ-125B and AN/SSQ-53 sonobuoys.3
- China is making submarine detection more important. Beijing continues to modernize its growing submarine fleet, including advanced nuclear-powered boats. Finding quieter submarines across the vast distances of the Pacific will soon be a common military challenge. The mission will require better sensors and more persistent surveillance – exactly the problem that Ultra’s technology is designed to address.
- Underwater drones are also entering combat. Ukraine said it used an underwater drone to attack a Russian Kilo-class submarine at Novorossiysk in December 2025. On September 8, Iran captured an American 19-foot U.S. Dive-LD autonomous underwater vehicle operating near the entrance to the Strait of Hormuz, where such drones have been used for seabed mapping and intelligence gathering.4 Russia is also developing those same technologies, with President Vladimir Putin announcing in October 2025 that the country had successfully tested its nuclear-powered, nuclear-capable Poseidon underwater drone using its onboard reactor for the first time.5
- Undersea infrastructure is at risk. After the Cook Islands-flagged oil tanker Eagle S severed the Estlink 2 undersea power cable in 2024, NATO launched Task Force X-Baltic.6 The initiative has since tested more than 70 air and underwater drones for monitoring ships and undersea infrastructure. Those efforts also ensure NATO can monitor chokepoints and adversarial naval forces.
Ultra Already Has Customers
Ultra already produces over 1,000 sonobuoys per day at its facilities in the United States, Britain, and Canada.7 Britain awarded it a £40 million (USD$53.5 million) sonobuoy contract this year.8 Lockheed Martin Canada awarded a CA$89 million (USD $63.4 million) contract to Ultra to provide three shipsets for Canada’s River-class destroyer program.9 India is also preparing to start its own domestic production of Ultra-designed sonobuoys in 2027.10
Advent International has invested around $170 million in Ultra since acquiring it in 2022.11 Ultra is also working with defense and energy corporation General Atomics to deploy smaller sonobuoys from MQ-9B SeaGuardian drones and with Anduril on autonomous underwater sensing.
More Companies Are Making the Same Bet
On the same day Lockheed announced its Ultra acquisition, French defense group Thales also announced a €3.9 billion (USD$4.5 billion) deal to acquire Exail Technologies, a French technology and defense firm that specializes in advanced navigation and maritime robots.12 Thales said that the acquisition would increase its scale in underwater warfare.
And, also on the same day, Italian shipbuilder Fincantieri announced agreements to acquire four underwater technology firms for roughly €600 million (USD$687 million).13
Ultra’s revenue has been growing at roughly 17% annually, and Lockheed’s purchase means it is buying existing production and defense contracts, not just future technology.14 Western militaries need more underwater sensors today, while submarines, autonomous systems, and threats to seabed infrastructure are expanding the number of things they will need to detect in the future.
References
1. Financial Times. “Lockheed Martin Agrees $3.45bn Deal for Undersea Warfare Specialist Ultra Maritime.” https://www.ft.com/content/5599eca5-5b23-4a10-a1fb-03db2d18bc69
2. Lockheed Martin. “Lockheed Martin to Acquire Ultra Maritime Solutions.” July 6, 2026. https://news.lockheedmartin.com/2026-07-06-Lockheed-Martin-to-Acquire-Ultra-Maritime-Solutions
3. The Defense Post. “Ultra Maritime, US Sonobuoy Production.” April 7, 2026. https://thedefensepost.com/2026/04/07/ultra-martime-us-sonobuoy/
4. Reuters. “Iran Says It Captured U.S. Submarine Drone in Strait of Hormuz.” Sept. 8, 2026. https://www.reuters.com/world/middle-east/iran-says-it-captured-us-submarine-drone-strait-hormuz-2026-09-08/
5. Associated Press. “Russia’s Putin Says Nuclear-Powered Poseidon Underwater Drone Has Been Tested.” October 2025. https://apnews.com/article/russia-putin-nuclear-poseidon-drone-burevestnik-missile-6c0d55d4d1a56e60ce750f8abe5eccab
6. NATO. “NATO Allies Agree to Expedite Innovation Adoption and Integration for Baltic Sea Security.” Feb. 12, 2026. https://www.nato.int/en/news-and-events/articles/news/2026/02/12/nato-allies-agree-to-expedite-innovation-adoption-and-integration-for-baltic-sea-security
7. Ultra Maritime. “Ultra Maritime Powers the Next Era of Undersea Warfare with Complete Production-Ready Sonobuoy Portfolio.” https://umaritime.com/ultra-maritime-powers-the-next-era-of-undersea-warfare-with-complete-production-ready-sonobuoy-portfolio/
8. The Defense News. “UK Ministry of Defence Awards £40 Million Sonobuoy Contract to Ultra Maritime for Royal Navy.” https://www.thedefensenews.com/UK-Ministry-of-Defence-Awards-40-Million-Sonobuoy-Contract-to-Ultra-Maritime-for-Royal-Navy/
9. Ultra Maritime. “Ultra Maritime Awarded Surface Ship Torpedo Defense.” https://umaritime.com/ultra-maritime-awarded-surface-ship-torpedo-defense/
10. The Hindu. “India-US Joint Sonobuoy Production Line by 2027.” https://www.thehindu.com/news/national/india-us-joint-sonobuoy-production-line-by-2027/article69092680.ece
11. Advent International. “Cobham Ultra, an Advent Portfolio Company, Agrees to Sell Ultra Maritime, a Technology-Led Undersea Warfare Solutions Provider to Lockheed Martin.” https://www.adventinternational.com/news/cobham-ultra-an-advent-portfolio-company-agrees-to-sell-ultra-maritime-a-technology-led-undersea-warfare-solutions-provider-to-lockheed-martin/
12. Bloomberg. “Thales Agrees €3.9 Billion Deal to Acquire Exail Technologies.” July 6, 2026. https://www.bloomberg.com/news/articles/2026-07-06/thales-agrees-3-9-billion-deal-to-acquire-exail-technologies
13. Investing.com. “Italy’s Fincantieri Shares Surge 11% on €600 Million Underwater Push.” https://www.investing.com/news/stock-market-news/italys-fincantieri-shares-surge-11-on-600-million-underwater-push-4775679
14. Ultra Maritime. “Cobham Ultra, an Advent Portfolio Company, Agrees to Sell Ultra Maritime, a Technology-Led Undersea Warfare Solutions Provider to Lockheed Martin.” https://umaritime.com/cobham-ultra-an-advent-portfolio-company-agrees-to-sell-ultra-maritime-a-technology-led-undersea-warfare-solutions-provider-to-lockheed-martin/
