Lockheed Martin (LMT) AI Stock Analysis

• Market Cap: $112.32B
• Dividend Yield: 2.72%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.20
• 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: 1,553,966
• 30 Day Avg. Volume: 1,344,099
• 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: 1.18
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 22.08
• Enterprise Value/Ebitda: 17.20
• 1Y Price Target: $535.92
• Price Target Upside: 10.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $534.00 ▲(10.01% Upside)

Lockheed Martin's overall stock score is driven by strong earnings call results, showcasing a record backlog and significant contract wins, which bolster future growth prospects. However, financial performance concerns such as declining profit margins and high leverage, along with mixed technical indicators, moderate the score.

Positive Factors

Record Backlog

A record backlog of $179 billion ensures strong future revenue visibility and production stability, supporting long-term growth.

Significant Contract Wins

Securing major contracts strengthens Lockheed Martin's market position and enhances its competitive edge in defense technology.

Innovative Partnerships

The partnership to develop scandium-based technology indicates a focus on innovation and diversification in advanced defense solutions.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, which could impact profitability and financial health long-term.

High Leverage

Significant leverage increases financial risk and could limit operational flexibility, affecting long-term financial stability.

Supply Chain Challenges

Ongoing supply chain issues could hinder production efficiency and delay project timelines, impacting future growth and profitability.

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: 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.

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 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: 485.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 485.41 is below the 20-day moving average (MA) of 499.95, above the 50-day MA of 476.56, and above the 200-day MA of 459.17, indicating a neutral trend. The MACD of 3.01 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 16.25 is Positive, 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	―	$94.35B	22.73	17.78%	1.69%	11.86%	17.39%
GE	―	$320.53B	40.52	42.74%	0.45%	-19.21%	31.83%
NOC	―	$86.43B	21.74	26.15%	1.44%	-0.14%	72.35%
LHX	―	$54.86B	32.74	8.90%	1.62%	2.93%	43.29%
LMT	―	$112.32B	27.10	62.78%	2.72%	2.88%	-35.15%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	―	$167.38B	-13.50	―	―	2.41%	-193.57%

Lockheed Martin Corporate Events

Lockheed Martin’s Strong Q3 2025 Financial Performance

Lockheed Martin Corporation is a leading global defense technology company specializing in the development and production of advanced military systems and technologies, with a strong focus on aeronautics, missiles, and space systems.

Lockheed Martin’s Earnings Call Highlights Strong Growth and Future Prospects

Lockheed Martin’s recent earnings call painted a positive picture of the company’s financial health and future prospects. The sentiment was largely optimistic, driven by a robust backlog and strong financial results. Despite some concerns about supply chain challenges and program-specific risks, the company remains confident in its growth trajectory and operational performance, particularly looking towards 2025.

Lockheed Martin Amends $3B Revolving Credit Agreement

On August 28, 2025, Lockheed Martin Corporation amended its existing $3.0 billion Revolving Credit Agreement, extending the maturity date by one year to August 24, 2030, and removing the 10 basis point credit spread adjustment to ‘Term SOFR’ borrowings. This amendment reflects Lockheed Martin’s ongoing financial strategy and relationships with its lenders, ensuring continued access to financial services and stability in its financial operations.

The most recent analyst rating on (LMT) stock is a Buy with a $503.00 price target. To see the full list of analyst forecasts on Lockheed Martin stock, see the LMT Stock Forecast page.

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.

The most recent analyst rating on (LMT) stock is a Buy with a $700.00 price target. To see the full list of analyst forecasts on Lockheed Martin stock, see the LMT Stock Forecast page.