Aerospace defense company Lockheed Martin (LMT) - Get Report announced on Wednesday that it has secured an $86.5 million contract from the U.S. Navy and Air Force for its Long Range Missile (LRASM) production.

The agreement, which marks the first production award for the air-launched version of LRASM, includes 23 missiles and engineering support.

"This first production lot of LRASM brings a new level of capability to both the US Air Force and the Navy," said Mike Fleming, LRASM director at Lockheed Martin Missiles and Fire Control.

"LRASM enables our warfighters to prosecute even the most advanced enemy ships," Fleming added.

Watch More with TheStreet:

  • Sorry Zuckerberg, Elon Musk Still Thinks Artificial Intelligence Is a Huge Problem
  • Gold Will Make a Comeback; Dollar Rally is Over - Peter Schiff
  • Just How 'Unlimited' is Your Unlimited Data Plan?
  • How Birchbox Took on Macy's, J.C. Penney and the $500 Billion Beauty Counter