Lockheed Martin Corp (LMT)
NYSE:LMT
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Lockheed Martin
(NYSE:LMT)
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Rating:74Outperform
Price Target:
$697.00
▲(10.90% Upside)
Action:ReiteratedDate:01/30/26
The score is driven mainly by strong cash-flow durability and a constructive 2026 outlook supported by record backlog and profit guidance. Offsetting factors are recent margin compression and execution-related segment profit volatility, while technically the stock is in a strong uptrend but appears overextended. Valuation is on the higher side relative to the dividend yield, tempering the overall score.
Positive Factors
Free Cash Flow Strength
Consistent, large free cash flow (FCF) underpins durable financial flexibility: it funds elevated CapEx and IRAD, supports production capacity ramps and R&D, and provides the ability to service debt or return capital without relying on equity raises over the medium term.
Negative Factors
Margin Compression
A multi-year decline in margins materially reduces operating leverage and free cash flow per dollar of sales. If structural (costs, mix, execution) rather than cyclical, sustained compression will pressure reinvestment capacity and shareholder returns absent enduring efficiency gains or pricing power improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistent, large free cash flow (FCF) underpins durable financial flexibility: it funds elevated CapEx and IRAD, supports production capacity ramps and R&D, and provides the ability to service debt or return capital without relying on equity raises over the medium term.
Read all positive factors
Lockheed Martin (LMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$144.61B
Dividend Yield2.77%
Average Volume (3M)1.65M
Price to Earnings (P/E)22.3
Beta (1Y)0.24
Revenue Growth2.88%
EPS Growth-35.15%
CountryUS
Employees121,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.80
Shares Outstanding230,080,250
10 Day Avg. Volume1,112,890
30 Day Avg. Volume1,648,090
Financial Highlights & Ratios
PEG Ratio-6.00
Price to Book (P/B)16.62
Price to Sales (P/S)1.49
P/FCF Ratio16.17
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.16
Enterprise Value/Gross Profit21.32
Enterprise Value/Ebitda18.61
Forecast
1Y Price Target
$673.21Price Target Upside7.11% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)29.99
Revenue Forecast (FY)$79.21B
Lockheed Martin Business Overview & Revenue Model
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: Aero...
How the Company Makes Money
Lockheed Martin generates revenue through various key streams, primarily driven by government contracts with the U.S. Department of Defense and other international defense agencies. The Aeronautics sector contributes significantly through the prod...
Lockheed Martin Key Performance Indicators (KPIs)
Any
Total Backlog
Indicates the total value of orders yet to be fulfilled, providing insight into future revenue streams and demand for the company's products.
Indicates the total value of orders yet to be fulfilled, providing insight into future revenue streams and demand for the company's products.
Data provided by:
The Fly
The FlyLockheed Martin Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong commercial momentum: record backlog ($194B), multi-percent revenue growth (full-year +6%, Q4 +9%), robust free cash flow ($6.9B), large production ramps and multiyear framework agreements (PAC-3 and THAAD) that materially expand missile capacity, and a bullish 2026 outlook (sales ~+5% and segment profit +25%+). Key positives include significant investments in capacity and R&D, record program deliveries, and attractive long-term demand visibility. Offsetting items include a modest decline in EPS (‑4%), meaningful program-related profitability hits in Aeronautics and RMS (FY operating profit down 17% and 31%, respectively), pension-related noncash charges and future pension funding requirements, and some near-term margin volatility from program timing. Overall, the positive operational and backlog-driven outlook and strong cash generation outweigh the near-term headwinds and one-time charges.Positive Updates
Record Backlog and Strong Demand
Record backlog of $194.0 billion at year-end 2025 (about 2.5x annual sales), backlog grew $17.3 billion or 17% year-over-year, full-year book-to-bill of 1.2, demonstrating resilient and growing demand across core programs.
Negative Updates
Earnings Per Share and Below-the-Line Pressure
Full-year EPS of $21.49, down 4% year-over-year; FY EPS impacted by increased interest expense, a higher tax rate, and higher operating FASCAS expense despite higher sales and segment profit.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Backlog and Strong Demand
Record backlog of $194.0 billion at year-end 2025 (about 2.5x annual sales), backlog grew $17.3 billion or 17% year-over-year, full-year book-to-bill of 1.2, demonstrating resilient and growing demand across core programs.
Read all positive updates
Company Guidance
Lockheed Martin guided 2026 sales of $77.05–$80.0 billion (≈5% organic growth at the midpoint), segment operating profit of $8.425–$8.675 billion (midpoint margin ~10.9% and reported segment operating profit growth >25% YoY), EPS of $29.35–$30.25 (midpoint ~+$8 vs. 2025, with ~$7 driven by pension-related accounting), and free cash flow of $6.5–$6.8 billion; planned capital expenditures are $2.5–$2.8 billion (with capital + IRAD approaching ~$5 billion, a ~35% YoY increase), business-area outlooks include Aeronautics low single‑digit growth (F‑35 production steady at 156/yr; Aero margin ~9.8%), MFC +14% sales at midpoint (double‑digit CAGR through the decade), RMS low single‑digit growth (margin ~10.5%), and Space ~+5% (margins slightly >10%), while the company prefunded the 2026 pension (~$860–$900M) so no required 2026 contribution and expects pension requirements to resume (~$1B+) in 2027; quarterly cadence for 2026 is 12/13/13/14 weeks (Q1–Q4).Lockheed Martin Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 75.06B | 71.04B | 67.57B | 65.98B | 67.04B |
| Gross Profit | 7.62B | 6.93B | 8.48B | 8.29B | 9.06B |
| EBITDA | 7.75B | 8.82B | 10.44B | 8.71B | 9.48B |
| Net Income | 5.02B | 5.34B | 6.92B | 5.73B | 6.32B |
Balance Sheet | |||||
| Total Assets | 59.84B | 55.62B | 52.46B | 52.88B | 50.87B |
| Cash, Cash Equivalents and Short-Term Investments | 4.12B | 2.48B | 1.44B | 2.55B | 3.60B |
| Total Debt | 21.70B | 20.27B | 17.46B | 15.55B | 11.68B |
| Total Liabilities | 53.12B | 49.28B | 45.62B | 43.61B | 39.91B |
| Stockholders Equity | 6.72B | 6.33B | 6.83B | 9.27B | 10.96B |
Cash Flow | |||||
| Free Cash Flow | 6.91B | 5.29B | 6.23B | 6.13B | 7.70B |
| Operating Cash Flow | 8.56B | 6.97B | 7.92B | 7.80B | 9.22B |
| Investing Cash Flow | -1.98B | -1.79B | -1.69B | -1.79B | -1.16B |
| Financing Cash Flow | -4.94B | -4.14B | -7.33B | -7.07B | -7.62B |
Lockheed Martin Technical Analysis
Positive
628.50
Price Trends
635.49
Negative
563.62
Positive
510.75
Positive
Market Momentum
-3.18
Negative
50.09
Neutral
85.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMT, the sentiment is Positive. The current price of 628.5 is above the 20-day moving average (MA) of 628.42, below the 50-day MA of 635.49, and above the 200-day MA of 510.75, indicating a neutral trend. The MACD of -3.18 indicates Negative momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LMT.
Lockheed Martin Risk Analysis
Lockheed Martin disclosed 21 risk factors in its most recent earnings report. Lockheed Martin reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lockheed Martin Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $97.57B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $66.12B | 47.45 | 8.28% | 1.61% | 2.83% | 47.00% | |
74 Outperform | $144.61B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
74 Outperform | $94.64B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
70 Outperform | $323.10B | 37.76 | 45.88% | 0.48% | -19.21% | 31.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $171.05B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
LMT
Lockheed Martin
628.50
178.55
39.68%
BA
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217.80
56.98
35.43%
GD
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350.02
83.64
31.40%
GE
GE Aerospace
308.06
121.78
65.37%
LHX
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361.97
151.23
71.76%
NOC
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687.47
183.27
36.35%
Lockheed Martin Corporate Events
Business Operations and StrategyFinancial Disclosures
Lockheed Martin Transfers Pension Obligations to Insurers
Negative
Dec 18, 2025
On December 16, 2025, Lockheed Martin executed buy-out conversions of previously purchased group annuity contracts, transferring approximately $900 million of gross defined benefit pension obligations from its pension plans to certain insurance co...
Business Operations and StrategyPrivate Placements and Financing
Lockheed Martin Secures New $3 Billion Credit Facility
Positive
Dec 9, 2025
On December 5, 2025, Lockheed Martin entered into a new 364-Day Revolving Credit Agreement with a $3.0 billion unsecured revolving credit facility involving multiple banks. This agreement, which matures on December 4, 2026, supports the company...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.