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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 Q3 2025 Earnings: Strong Performance Across All Segments

Lockheed Martin Corporation reported a robust financial performance in its third-quarter 2025 earnings call, with sales increasing 9% year-over-year to $18.6 billion, driven by a normalized growth rate of 5%. The company's segment operating profit was $2 billion, up 9% year-over-year, resulting in 10.9% segment margins. Earnings per share (EPS) was $6.95, beating analyst estimates of $6.38, and representing a $0.15 year-over-year increase.

Publication Date: Oct -21

📋 Highlights
  • Record Backlog:: Secured $179 billion backlog, driven by $9.8B PAC-3, $9.5B JASSM/LARASM, and $10.9B CH-53K contracts.
  • Strong Sales Growth:: Q3 sales rose 9% YoY to $18.6 billion, with 5% normalized growth and $7.3 billion in Aeronautics from F-35 production.
  • Profit Expansion:: Segment operating profit hit $2 billion (+9% YoY), with 10.9% margins and EPS of $6.95 (+$0.15 YoY).
  • Free Cash Flow & Dividend:: Generated $3.3 billion free cash flow, 1.7 book-to-bill ratio, and approved 5% dividend increase with $2.5B share buyback boost.
  • Updated Guidance:: Raised 2025 sales to $74.25–74.75B (5% growth), $22.15–22.35 EPS, and $6.675–6.725B segment operating profit.

Segment Performance

The Aeronautics segment saw sales increase 12% year-over-year to $7.3 billion, driven by higher volume on F-35 production and sustainment contracts. The Missiles and Fire Control (MFC) segment secured significant awards, including a $9.8 billion PAC-3 contract, and saw sales increase 14% to $3.6 billion. The Rotary and Mission Systems (RMS) segment received a $10.9 billion award for CH-53K helicopters, and the Space segment saw sales increase 9% year-over-year, driven by higher volumes at Strategic and Missile Defense, and national security space.

Guidance and Outlook

The company raised its 2025 sales guidance to $74.25-74.75 billion, implying 5% organic growth year-over-year, and expects segment operating profit to be $6.675-6.725 billion. Earnings per share are expected to be $22.15-22.35. Lockheed Martin plans to direct excess cash generated above $6.6 billion free cash flow estimate towards pre-funding a portion of the required $1 billion pension contribution in 2026.

Valuation and Growth Prospects

With a P/E Ratio of 27.03 and an EV/EBITDA of 14.64, Lockheed Martin's valuation suggests that the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 4.2%. The company's ROE of 68.48% and ROIC of 13.38% indicate strong profitability. The Dividend Yield of 2.7% and Free Cash Flow Yield of 4.02% also make the stock attractive to income investors.

Operational Highlights

Lockheed Martin delivered 46 F-35 aircraft in Q3 and expects to deliver between 175 and 190 aircraft in 2025. The company is working on the Next Generation Interceptor program and has secured multiple contract research and development awards. The F-35 program is maintaining a $156 million annual rate, with growth expected to come from sustainment as new capabilities are added and more jets are delivered.

3. NewsRoom

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Lockheed Martin Skunk Works® Showcases AI‑Driven Mission‑Contingency Management on an Autonomous UAV Demonstration

Dec -04

Source: prnewswire.com

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Lockheed Martin (LMT) Rises Higher Than Market: Key Facts

Dec -03

Source:

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Lockheed Martin Corporation (LMT) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Lockheed Martin opens new hypersonic weapons facility

Dec -03

Source: reuters.com

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Arrowstreet Capital Limited Partnership Buys 7,595 Shares of Lockheed Martin Corporation $LMT

Dec -03

Source: defenseworld.net

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US Approves Over $1 Billion Potential Defense Equipment Sales To Bahrain, Saudi Arabia

Dec -02

Source: feeds.benzinga.com

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Market Today: Crypto Rout, Omnicom Cuts, Nvidia--Synopsys Deal

Dec -01

Source: gurufocus.com

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US approves potential $455 million sale of F-16 sustainment to Bahrain

Dec -01

Source: reuters.com

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: 6.4/10

Value: 3.0

Growth: 7.9

Quality: 6.7

Yield: 9.0

Momentum: 4.0

Volatility: 8.0

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L3Harris

A-Score: 6.2/10

Value: 3.0

Growth: 5.7

Quality: 6.8

Yield: 4.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Northrop Grumman

A-Score: 6.0/10

Value: 3.5

Growth: 5.9

Quality: 6.6

Yield: 3.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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General Dynamics

A-Score: 6.0/10

Value: 3.6

Growth: 4.7

Quality: 6.2

Yield: 4.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Raytheon Technologies

A-Score: 5.4/10

Value: 2.3

Growth: 3.8

Quality: 5.0

Yield: 4.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Lockheed Martin

A-Score: 4.7/10

Value: 2.8

Growth: 5.1

Quality: 4.5

Yield: 6.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

452.2$

Current Price

452.2$

Potential

-0.00%

Expected Cash-Flows