Lockheed Martin (LMT) AI Stock Analysis

• Market Cap: $106.37B
• Dividend Yield: 2.94%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.23
• Revenue Growth: 1.09%
• EPS Growth: -35.50%
• Country: US
• Employees: 121,000
• Sector: Industrials
• Sector Strength: 75
• Industry: Aerospace & Defense
• EPS (TTM): 1.46
• Shares Outstanding: 233,465,060
• 10 Day Avg. Volume: 1,369,205
• 30 Day Avg. Volume: 2,040,789
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 21.79
• Enterprise Value/Ebitda: 16.82
• 1Y Price Target: $480.13
• Price Target Upside: 6.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 71 Outperform
• Price Target: $503.00 ▲(12.01% Upside)

Lockheed Martin's overall stock score reflects stable financial performance with strong operational efficiency and reduced leverage. However, concerns about profitability margins, high valuation, and financial challenges from legacy programs weigh on the score. The technical indicators suggest potential short-term volatility.

Positive Factors

International Demand

Foreign demand for the F-35 may help compensate for any potential decline in U.S. Department of Defense orders.

Missiles and Fire Control

Missiles and Fire Control (MFC) is seen as the principal driver of upside in the near-term, with strong demand and elevated backlog.

Shareholder Returns

Management remains committed to shareholder returns through dividends and share repurchases.

Negative Factors

Operational Challenges

Heavy charges across many programs have negatively impacted the company's financial performance.

Software Development Concerns

The software issue, in particular, raises concerns about the company’s ability to manage complex software projects as it follows delays on TR-3 for the F-35.

Tax Uncertainty

The IRS believes Lockheed Martin owes a significant amount in taxes, which creates uncertainty.

Lockheed Martin Business Overview & Revenue Model

Company Description

Lockheed Martin Corporation (LMT) is a global aerospace, defense, and security company headquartered in Bethesda, Maryland. It operates through four primary business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems. The company is renowned for its advanced technology and innovation in developing military aircraft, missile systems, naval systems, and space exploration vehicles, serving both government and commercial customers worldwide.

How the Company Makes Money

Lockheed Martin generates revenue primarily through government contracts, particularly from the U.S. Department of Defense and other federal agencies. Key revenue streams include the sale of military aircraft, such as the F-35 Lightning II, missile systems, and space systems, including satellite and launch services. Additionally, the company engages in various international defense partnerships and joint ventures, which contribute significantly to its earnings. Lockheed Martin's robust research and development efforts also enable it to maintain a competitive edge in securing new contracts and expanding its portfolio in emerging technologies, such as cybersecurity and advanced manufacturing.

Lockheed Martin Financial Statement Overview

Summary

Lockheed Martin exhibits stable revenue growth and strong operational efficiency. However, challenges in profitability margins and a reduction in free cash flow generation are concerns. The company has improved its balance sheet strength by reducing leverage.

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	71.84B	71.04B	67.57B	65.98B	67.04B	65.40B
Gross Profit	5.86B	6.93B	8.48B	8.29B	9.06B	8.65B
EBITDA	7.60B	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	58.87B	55.62B	52.46B	52.88B	50.87B	50.71B
Cash, Cash Equivalents and Short-Term Investments	1.29B	2.48B	1.44B	2.55B	3.60B	3.16B
Total Debt	21.64B	21.42B	17.46B	15.55B	11.68B	12.17B
Total Liabilities	53.54B	49.28B	45.62B	43.61B	39.91B	44.67B
Stockholders Equity	5.33B	6.33B	6.83B	9.27B	10.96B	6.01B
Cash Flow
Free Cash Flow	3.33B	5.29B	6.23B	6.13B	7.70B	6.42B
Operating Cash Flow	5.07B	6.97B	7.92B	7.80B	9.22B	8.18B
Investing Cash Flow	-2.19B	-1.79B	-1.69B	-1.79B	-1.16B	-2.01B
Financing Cash Flow	-4.11B	-4.14B	-7.33B	-7.07B	-7.62B	-4.53B

Lockheed Martin Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 449.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 449.06 is above the 20-day moving average (MA) of 440.05, above the 50-day MA of 443.09, and below the 200-day MA of 460.64, indicating a neutral trend. The MACD of 3.91 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 51.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LMT.

Lockheed Martin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	82 Outperform	$291.83B	38.44	40.20%	0.46%	-32.80%	69.39%
GD	79 Outperform	$87.31B	21.78	17.91%	1.81%	11.85%	16.12%
LHX	78 Outperform	$51.94B	31.00	8.90%	1.73%	2.93%	43.29%
NOC	77 Outperform	$84.38B	21.67	26.50%	1.50%	-0.65%	77.20%
LMT	71 Outperform	$106.37B	25.48	73.06%	2.94%	1.09%	-35.50%
Sector *	64 Neutral	$10.66B	15.60	8.14%	2.00%	2.79%	-14.82%
BA	58 Neutral	$177.46B	―	-162.23%	―	2.41%	-193.57%

Lockheed Martin Corporate Events

Lockheed Martin Issues $2 Billion in Senior Notes

On July 28, 2025, Lockheed Martin completed the issuance and sale of $2 billion in senior unsecured notes, with varying maturity dates in 2028, 2030, and 2035. The proceeds from this issuance are intended for general corporate purposes, potentially including the repayment of existing debt, which could impact the company’s financial strategy and stakeholder interests.