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1. Company Snapshot

1.a. Company Description

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide.It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies.


The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions.The Rotary and Mission Systems segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions.The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive missile systems; and classified systems and services in support of national security systems.


This segment also provides network-enabled situational awareness and integrates space and ground-based systems to help its customers gather, analyze, and securely distribute critical intelligence data.It serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government.Lockheed Martin Corporation was founded in 1912 and is headquartered in Bethesda, Maryland.

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1.b. Last Insights on LMT

Lockheed Martin's recent performance was negatively driven by a significant profit miss in Q2 2025, largely due to a $1.6 billion pre-tax loss and other charges of $169 million. The company's program losses, particularly in its Aeronautics and Rotary and Mission Systems segments, weighed heavily on its earnings, leading to a slashed full-year profit forecast.

1.c. Company Highlights

2. Lockheed Martin's Strong 2025 Earnings: A Record Backlog and Growth Ahead

Lockheed Martin reported a robust financial performance for the fourth quarter and full year 2025, with a significant increase in backlog to a record $194 billion, driven by 6% year-over-year sales growth. The company's earnings per share (EPS) for the fourth quarter came in at $5.80, while the full-year EPS was $7.43, beating analyst estimates of $5.81. The segment operating profit margins stood at 10.1%, and the company generated $6.9 billion in free cash flow. As Evan Scott noted, the company had a transformative year with a 17% increase in backlog and $9 billion in underlying operating cash flow.

Publication Date: Feb -02

📋 Highlights
  • Record Backlog and Sales Growth:: Lockheed Martin reported a $194 billion backlog (17% YoY increase) and 6% year-over-year sales growth in 2025.
  • F-35 Production Milestones:: Delivered 191 F-35 fighter jets and 120 PAC-3 MSE interceptors, both record outputs, with $15 billion in F-35 program awards for 2026.
  • Strong Free Cash Flow and R&D Investment:: Generated $6.9 billion in free cash flow and invested $3.5 billion in capital and R&D, supporting production capacity and innovation.
  • 2026 Financial Outlook:: Expects 5% sales growth, >25% segment operating profit growth, and $6.5–6.8 billion in free cash flow with 35% higher investment.
  • Operational Segment Performance:: Missiles and Fire Control (MFC) saw 18% sales growth and $1.3 billion profit increase, while Aeronautics profit surged 80% YoY.

Segment Performance

The Aeronautics segment saw a 6% increase in sales and an 80% increase in segment operating profit, driven by higher sales volume on F-35 fighter jets. The Missiles and Fire Control segment reported an 18% increase in sales and a $1.3 billion increase in segment operating profit, driven by higher sales volume on strategic and missile defense programs. The Rotary and Mission Systems segment saw an 8% increase in sales, but a 9% decrease in operating profit due to unfavorable profit adjustments on Black Hawk programs.

Outlook and Guidance

For 2026, Lockheed Martin expects sales to be in the range of $77.05 to $80 billion, with segment operating profit anticipated to be in the range of $8.425 to $8.675 billion. The company is investing in numerous projects to improve speed and capabilities, including digital transformation, innovative product development, and accelerating production capacity. Analysts estimate next year's revenue growth at 4.7%, which is lower than the company's expected growth rate.

Valuation

Lockheed Martin's current valuation metrics indicate a premium, with a P/E Ratio of 29.19, P/B Ratio of 21.79, and EV/EBITDA of 16.39. The company's ROE stands at 80.53%, and ROIC at 17.39%. The dividend yield is 2.1%, and the free cash flow yield is 4.71%. These metrics suggest that the company's strong financial performance and growth prospects are partially priced in, but there may still be upside potential given the company's commitment to innovation and investment in growth opportunities.

3. NewsRoom

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Principal Financial Group Inc. Trims Stock Holdings in Lockheed Martin Corporation $LMT

10:18

Source: defenseworld.net

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Lockheed Martin Corporation $LMT Shares Sold by Money Concepts Capital Corp

Feb -02

Source: defenseworld.net

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Jones Financial Companies Lllp Grows Stock Position in Lockheed Martin Corporation $LMT

Feb -02

Source: defenseworld.net

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Yacktman Asset Management LP Has $108.27 Million Stake in Lockheed Martin Corporation $LMT

Feb -02

Source: defenseworld.net

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Allied Investment Advisors LLC Has $11.36 Million Stock Position in Lockheed Martin Corporation $LMT

Feb -02

Source: defenseworld.net

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Syntax Research Inc. Has $1.77 Million Stock Position in Lockheed Martin Corporation $LMT

Feb -02

Source: defenseworld.net

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Mutual Advisors LLC Acquires 1,128 Shares of Lockheed Martin Corporation $LMT

Feb -02

Source: defenseworld.net

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United Community Bank Grows Stake in Lockheed Martin Corporation $LMT

Feb -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.80%)

6. Segments

Aeronautics

Expected Growth: 3.5%

The Aeronautics segment is expected to grow at a slightly lower rate than the global average due to the maturity of its primary products, such as the F-35, which, although still in production, may see a gradual decrease in demand as production ramps down. However, sustainment services are expected to provide a steady stream of revenue.

Rotary and Mission Systems

Expected Growth: 4.2%

Rotary and Mission Systems is expected to grow at a higher rate than the global average due to its diverse portfolio and strong international demand for its helicopters and mission systems. The segment's broad customer base and the ongoing need for modernization and sustainment are driving this growth.

Missiles and Fire Control

Expected Growth: 4.0%

Missiles and Fire Control is expected to grow at a rate slightly above the global average due to the ongoing demand for precision weapons and the need for modernization of existing systems. The segment's strong product portfolio and the continued investment in defense by the U.S. and its allies support this growth.

Space

Expected Growth: 5.0%

The Space segment is expected to grow at a significantly higher rate than the global average due to the increasing demand for space-based assets, driven by national security needs, commercial opportunities, and civil space programs. The segment's strong position in the market and its innovative products support this growth.

Intersegment Sales

Expected Growth: None%

None

7. Detailed Products

F-35 Lightning II

A fifth-generation, multi-role stealth fighter aircraft designed to perform air-to-air combat, air-to-ground strikes, and intelligence, surveillance, and reconnaissance (ISR) missions.

C-130J Super Hercules

A tactical transport aircraft designed for military and humanitarian missions, providing airlift, airdrop, and aeromedical evacuation capabilities.

THAAD (Terminal High Altitude Area Defense)

A missile defense system designed to protect against ballistic missiles, providing early warning, tracking, and intercept capabilities.

Aegis Combat System

A naval combat system designed to detect, track, and engage airborne and surface targets, providing air defense, anti-submarine warfare, and surface warfare capabilities.

Skunk Works (Advanced Development Programs)

A research and development division focused on advanced, cutting-edge technologies, including hypersonic vehicles, autonomous systems, and advanced materials.

Satellite Systems

A range of satellite systems, including communication, navigation, and weather satellites, providing critical space-based capabilities for military, civil, and commercial customers.

Cyber Security Solutions

A range of cyber security solutions, including threat detection, incident response, and cyber analytics, designed to protect against cyber threats and vulnerabilities.

8. Lockheed Martin Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Lockheed Martin's products and services are highly specialized and customized, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While Lockheed Martin has a diverse customer base, the US government is a significant customer, giving it some bargaining power.

Bargaining Power Of Suppliers

Lockheed Martin's suppliers are numerous and diverse, reducing their bargaining power.

Threat Of New Entrants

The aerospace and defense industry has high barriers to entry, making it difficult for new entrants to compete with Lockheed Martin.

Intensity Of Rivalry

The aerospace and defense industry is highly competitive, with several established players competing for contracts and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.87%
Debt Cost 6.14%
Equity Weight 28.13%
Equity Cost 6.22%
WACC 6.16%
Leverage 255.44%

11. Quality Control: Lockheed Martin Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TransDigm Group

A-Score: 7.0/10

Value: 3.0

Growth: 8.0

Quality: 6.7

Yield: 9.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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General Dynamics

A-Score: 6.3/10

Value: 4.1

Growth: 4.7

Quality: 5.9

Yield: 4.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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Northrop Grumman

A-Score: 6.2/10

Value: 3.6

Growth: 5.9

Quality: 6.4

Yield: 3.0

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
L3Harris

A-Score: 6.0/10

Value: 2.8

Growth: 5.6

Quality: 5.4

Yield: 4.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Raytheon Technologies

A-Score: 5.5/10

Value: 2.3

Growth: 3.4

Quality: 5.0

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Lockheed Martin

A-Score: 5.1/10

Value: 2.8

Growth: 5.1

Quality: 4.5

Yield: 6.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

632.54$

Current Price

632.54$

Potential

-0.00%

Expected Cash-Flows