Lockheed Martin (LMT)
NYSE:LMT
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Lockheed Martin
(NYSE:LMT)
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Rating:61Neutral
Price Target:
$586.00
▼(-1.05% Downside)
Action:ReiteratedDate:04/23/26
The score is anchored by resilient financials (growth and strong cash generation) and a guidance/backlog-supported outlook from the earnings call, but capped by high leverage and cash-flow/margin volatility. The largest near-term drag is weak technical momentum with the stock trading well below key moving averages, despite oversold readings.
Positive Factors
Cash generation
Consistent multi-billion operating and free cash flow provides durable internal funding for capex, R&D, dividends and debt reduction. Strong cash generation supports multi‑year production ramps and sustainment contracts, reducing reliance on external financing during cyclical pressure.
Negative Factors
High leverage
A debt-to-equity ratio around 3.2x materially limits financial flexibility. High leverage increases interest‑rate sensitivity and magnifies downside if program schedules slip or cash flows weaken, constraining investment optionality and raising refinancing risk during prolonged market stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent multi-billion operating and free cash flow provides durable internal funding for capex, R&D, dividends and debt reduction. Strong cash generation supports multi‑year production ramps and sustainment contracts, reducing reliance on external financing during cyclical pressure.
Read all positive factors
Lockheed Martin (LMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$117.54B
Dividend Yield2.77%
Average Volume (3M)1.36M
Price to Earnings (P/E)23.1
Beta (1Y)0.20
Revenue Growth4.59%
EPS Growth-10.76%
CountryUS
Employees121,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)6.44
Shares Outstanding230,563,610
10 Day Avg. Volume994,843
30 Day Avg. Volume1,357,038
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 Cap1.16
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit18.49
Enterprise Value/Ebitda16.86
Forecast
1Y Price Target
$655.92Price Target Upside10.76% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)29.94
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 primarily makes money by selling defense and space products and long-term support services, largely through contracts with the U.S. government (especially the U.S. Department of Defense) and, to a smaller extent, allied foreign gov...
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:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong commercial wins, strategic program validation (Artemis/Orion), large munition and aircraft awards, and clear demand signaling that underpin long-term growth and support management's full-year guidance. Offsetting these positives were near-term execution and timing issues (shortened fiscal period, ERP implementation, program-specific design and supplier challenges) that compressed margins and drove a Q1 cash use and a ~12% EPS decline. Management emphasized risk-mitigation arrangements for production ramps, substantial supplier and government coordination, and confidence that margins and cash flow will improve in the back half of the year.Positive Updates
Large New International and Domestic Contracts
Signed a $1.5 billion contract with the Peruvian Air Force for 12 Block 70 F-16s (option for additional 12), secured MFC orders totaling ~$7.0 billion for PAC-3 including $2.2B and a $4.8B undefinitized contract, $700M in F-35 long-lead material awards (lots 20/21 international), $890M Fleet Ballistic Missile award, and a $365M Aegis BMD award.
Negative Updates
Profit and Earnings Declines
Segment operating profit totaled $1.8 billion, down versus Q1 2025. Diluted earnings per share fell to $6.44, a decrease of ~12% YoY, driven by lower profit and mark-to-market losses on investments/deferred compensation (partially offset by favorable pension adjustment).
Read all updates
Q1-2026 Updates
Positive
Negative
Large New International and Domestic Contracts
Signed a $1.5 billion contract with the Peruvian Air Force for 12 Block 70 F-16s (option for additional 12), secured MFC orders totaling ~$7.0 billion for PAC-3 including $2.2B and a $4.8B undefinitized contract, $700M in F-35 long-lead material awards (lots 20/21 international), $890M Fleet Ballistic Missile award, and a $365M Aegis BMD award.
Read all positive updates
Company Guidance
Lockheed Martin reaffirmed its 2026 outlook: mid-single-digit sales growth, profit of $8.4–$8.7 billion, and free cash flow of $6.5–$6.8 billion, with planned capital expenditures of $2.5–$2.8 billion to support production ramps; management noted Q1 sales of $18.0 billion and segment operating profit of $1.8 billion, Q1 EPS of $6.44 (down 12%), and a Q1 free cash flow use of $291 million, but expects sales to grow in Q2 and be back‑end weighted for cash, margins to improve in H2 as production milestones are achieved, factory output up >60% versus two years ago, and said favorable IRS guidance on the corporate AMT increases confidence in hitting the upper end of the cash range.Lockheed Martin Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.11B | 75.06B | 71.04B | 67.57B | 65.98B | 67.04B |
| Gross Profit | 7.37B | 7.62B | 6.93B | 8.48B | 8.29B | 9.06B |
| EBITDA | 8.09B | 7.75B | 8.82B | 10.44B | 8.71B | 9.48B |
| Net Income | 4.79B | 5.02B | 5.34B | 6.92B | 5.73B | 6.32B |
Balance Sheet | ||||||
| Total Assets | 59.24B | 59.84B | 55.62B | 52.46B | 52.88B | 50.87B |
| Cash, Cash Equivalents and Short-Term Investments | 1.89B | 4.12B | 2.48B | 1.44B | 2.55B | 3.60B |
| Total Debt | 20.70B | 21.70B | 20.27B | 17.46B | 15.55B | 11.68B |
| Total Liabilities | 51.75B | 53.12B | 49.28B | 45.62B | 43.61B | 39.91B |
| Stockholders Equity | 7.49B | 6.72B | 6.33B | 6.83B | 9.27B | 10.96B |
Cash Flow | ||||||
| Free Cash Flow | 5.66B | 6.91B | 5.29B | 6.23B | 6.13B | 7.70B |
| Operating Cash Flow | 7.37B | 8.56B | 6.97B | 7.92B | 7.80B | 9.22B |
| Investing Cash Flow | -2.09B | -1.98B | -1.79B | -1.69B | -1.79B | -1.16B |
| Financing Cash Flow | -5.19B | -4.94B | -4.14B | -7.33B | -7.07B | -7.62B |
Lockheed Martin Technical Analysis
Neutral
592.19
Price Trends
635.22
Negative
574.20
Positive
516.29
Positive
Market Momentum
-7.05
Positive
36.31
Neutral
13.91
Positive
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 592.19 is below the 20-day moving average (MA) of 616.92, below the 50-day MA of 635.22, and above the 200-day MA of 516.29, indicating a neutral trend. The MACD of -7.05 indicates Positive momentum. The RSI at 36.31 is Neutral, neither overbought nor oversold. The STOCH value of 13.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $91.74B | 21.58 | 17.57% | 1.73% | 10.13% | 13.27% | |
69 Neutral | $60.03B | 47.45 | 8.28% | 1.61% | 2.53% | 8.24% | |
68 Neutral | $295.86B | 38.03 | 46.39% | 0.48% | 21.75% | 26.48% | |
67 Neutral | $81.30B | 27.70 | 28.05% | 1.55% | 4.95% | 26.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $117.54B | 23.12 | 74.53% | 2.77% | 4.59% | -10.76% | |
53 Neutral | $176.67B | -10,177.67 | -8719.23% | ― | 32.74% | ― |
* Industrials Sector Average
LMT
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9.63%
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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.