Lockheed Martin (LMT) AI Stock Analysis

• Market Cap: $109.87B
• Dividend Yield: 2.84%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.21
• Revenue Growth: 2.88%
• EPS Growth: -35.15%
• Country: US
• Employees: 121,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 6.95
• Shares Outstanding: 231,397,800
• 10 Day Avg. Volume: 1,407,680
• 30 Day Avg. Volume: 1,336,488
• PEG Ratio: -1.14
• Price to Book (P/B): 18.29
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 21.90
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 22.08
• Enterprise Value/Ebitda: 17.20
• 1Y Price Target: $524.93
• Price Target Upside: 11.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $534.00 ▲(13.58% Upside)

Lockheed Martin's overall stock score reflects strong earnings call performance and solid financials, tempered by high leverage and valuation concerns. The company's positive outlook and significant contract wins are key strengths, while technical indicators suggest caution.

Positive Factors

Strong Backlog

A robust backlog ensures future revenue visibility and stability, supporting long-term growth and operational planning.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns.

Strategic Partnerships

Strategic partnerships with tech leaders like Google can drive innovation and improve competitive positioning in defense technology.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially affecting long-term financial stability.

Declining Profit Margins

Declining profit margins suggest rising costs or pricing pressures, which can impact profitability and competitiveness.

Supply Chain Challenges

Ongoing supply chain issues can hinder production efficiency and delay project timelines, affecting revenue and growth.

Lockheed Martin Business Overview & Revenue Model

Company Description

Lockheed Martin (LMT) is a global aerospace, defense, and security company headquartered in Bethesda, Maryland. It operates in four primary sectors: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. The company is known for its advanced technology and innovative solutions, producing a wide range of products including military aircraft, missile systems, space exploration equipment, and cybersecurity solutions.

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 production of military aircraft such as the F-35 Lightning II and the C-130 Hercules, while the Missiles and Fire Control sector provides advanced missile systems and defense technologies. Revenue is also bolstered by contracts in the Space sector, which includes satellite systems and space exploration initiatives. Additionally, Lockheed Martin engages in partnerships with other defense contractors, government entities, and international organizations, further enhancing its revenue potential. The company also invests in research and development to innovate and expand its product offerings, which can lead to new contracts and revenue opportunities.

Lockheed Martin Financial Statement Overview

Summary

Lockheed Martin exhibits a stable financial profile with consistent revenue growth and strong operational efficiency. Despite challenges in profitability margins and free cash flow reduction, the company has successfully reduced leverage and improved its balance sheet strength. The overall financial health remains robust, though attention to profitability improvements and cash flow generation is needed.

Income Statement

Lockheed Martin's income statement shows a stable revenue growth trajectory with a TTM (Trailing-Twelve-Months) revenue of $71.8 billion, up from $71.0 billion in 2024. The gross profit margin has slightly decreased to 8.16% from 9.75% in 2024, indicating potential cost challenges. The net profit margin also declined to 5.85% from 7.51%, reflecting reduced profitability. However, EBITDA margin remains strong at 11.21%, showcasing operational efficiency.

Balance Sheet

The balance sheet indicates a robust equity position with a debt-to-equity ratio improvement to 0.58 from 3.20 in 2024, highlighting reduced leverage. The equity ratio stands at 9.06%, reflecting a manageable level of equity in total assets. However, the ROE has decreased to 78.81% from 84.26%, indicating a slight dip in shareholder returns. Overall, the company maintains a stable financial position with adequate equity and reduced debt levels.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow to $3.33 billion from $5.29 billion in 2024, indicating a reduction in liquidity generation. The operating cash flow to net income ratio is healthy at 1.21, suggesting efficient cash generation from operations. The free cash flow to net income ratio has decreased to 0.79, reflecting reduced cash retention. Overall, the cash flow statement shows stable operational cash flows but highlights a decline in free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.35B	71.04B	67.57B	65.98B	67.04B	65.40B
Gross Profit	5.99B	6.93B	8.48B	8.29B	9.06B	8.65B
EBITDA	7.68B	8.82B	10.44B	8.71B	9.48B	10.12B
Net Income	4.20B	5.34B	6.92B	5.73B	6.32B	6.83B
Balance Sheet
Total Assets	60.28B	55.62B	52.46B	52.88B	50.87B	50.71B
Cash, Cash Equivalents and Short-Term Investments	3.47B	2.48B	1.44B	2.55B	3.60B	3.16B
Total Debt	22.19B	21.42B	17.46B	15.55B	11.68B	12.17B
Total Liabilities	54.09B	49.28B	45.62B	43.61B	39.91B	44.67B
Stockholders Equity	6.18B	6.33B	6.83B	9.27B	10.96B	6.01B
Cash Flow
Free Cash Flow	4.59B	5.29B	6.23B	6.13B	7.70B	6.42B
Operating Cash Flow	6.36B	6.97B	7.92B	7.80B	9.22B	8.18B
Investing Cash Flow	-2.30B	-1.79B	-1.69B	-1.79B	-1.16B	-2.01B
Financing Cash Flow	-3.74B	-4.14B	-7.33B	-7.07B	-7.62B	-4.53B

Lockheed Martin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 470.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 470.14 is above the 20-day moving average (MA) of 460.70, below the 50-day MA of 471.73, and above the 200-day MA of 459.09, indicating a neutral trend. The MACD of 2.83 indicates Negative momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 70.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LMT.

Lockheed Martin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$91.16B	21.87	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$80.52B	20.25	26.15%	1.61%	-0.14%	72.35%
GE	72 Outperform	$308.20B	38.96	42.74%	0.48%	-19.21%	31.83%
LMT	70 Outperform	$109.87B	26.50	62.78%	2.84%	2.88%	-35.15%
LHX	70 Neutral	$52.14B	29.93	9.13%	1.72%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	54 Neutral	$161.57B	-15.22	―	―	10.19%	-6.03%

Lockheed Martin Corporate Events

Lockheed Martin Secures New $3 Billion Credit Facility

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’s financial flexibility for corporate purposes, including commercial paper borrowings, and reflects its strategic financial management to maintain liquidity and operational stability.