Lockheed Martin (LMT) — Company Research
Last Updated: 3 Jun 2026
Lockheed Martin Corporation (NYSE: LMT) is the world's largest pure-play defence contractor, best known as the prime contractor for the F-35 Lightning II fighter and the PAC-3 missile-defence interceptor. The company operates through four segments — Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space — and sells overwhelmingly to the US Government and allied nations. In its most recent full year (FY2025, ended 31 December 2025) Lockheed reported record sales of $75.05bn and a record backlog of about $194bn, equivalent to more than two-and-a-half years of revenue. This report compiles publicly available figures from Lockheed's earnings releases and SEC filings; it contains no analyst price targets or ratings.
1. Company Snapshot
| Field | Value |
|---|---|
| Ticker / Exchange | LMT (NYSE) |
| Sector | Aerospace & Defence |
| CEO / Leadership | James D. (Jim) Taiclet (Chairman, President & CEO since June 2020) |
| Headquarters | Bethesda, Maryland, USA |
| Employees | Approximately 123,000 (incl. ~72,000 engineers, scientists & IT professionals) |
| Market cap | ~$118bn (early June 2026) |
| FY2025 revenue | $75.05bn |
| FY2025 net income (GAAP) | $5.02bn |
| FY2025 GAAP EPS | $21.49 |
| Backlog (YE2025) | ~$194bn (record) |
Lockheed Martin is led by Chief Executive Officer James D. Taiclet, a former US Air Force pilot who has served as Chairman, President and CEO since June 2020. The group reports through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.
2. Bull and Bear Case
Bull Case
- Record backlog: A near-$194bn backlog at year-end 2025 provides more than two-and-a-half years of revenue visibility, underpinned by long-cycle programmes like the F-35.
- Missile super-cycle: Missiles and Fire Control grew sales 14% in 2025 with record PAC-3 MSE deliveries; the US Army's $4.76bn PAC-3 award lifts annual output toward 2,000 interceptors.
- F-35 franchise: Lockheed delivered a record 191 F-35s in 2025 and continues to win large sustainment and armament awards, anchoring decades of recurring revenue.
- New-domain optionality: Selection for the US Golden Dome space-based interceptor effort opens a potential new multi-year growth avenue in missile defence.
- Shareholder returns: Lockheed has raised its dividend for more than two decades (FY2025 declared $13.35/share) and continues sizeable buybacks, supported by ~$6.9bn FY2025 free cash flow.
Bear Case
- Programme charges: 2025 GAAP EPS fell 4% as classified-programme losses and a $479m pension settlement charge hit earnings, highlighting fixed-price execution risk.
- Customer concentration: The overwhelming majority of revenue comes from the US Government, leaving Lockheed exposed to budget cycles and procurement decisions.
- F-35 dependence: Aeronautics derives a large share of sales from a single platform; schedule, upgrade (TR-3/Block 4) or funding setbacks would be material.
- Slower top-line growth: Revenue growth in the mid-single digits trails faster-growing defence-technology peers.
- Cash-flow variability: Q1 2026 showed weaker cash flow, and program timing can make quarterly free cash flow lumpy.
3. Business Segments
Lockheed Martin reports through four segments. Figures are FY2025 net sales; the segments sum to consolidated revenue of $75.05bn.
| Segment | % of revenue | What it is |
|---|---|---|
| Aeronautics | ~40% ($30.3bn) | Combat aircraft, led by the F-35 Lightning II, plus the F-16, F-22 sustainment and classified programmes. |
| Rotary and Mission Systems | ~23% ($17.2bn) | Sikorsky helicopters, naval and radar systems, training and integrated mission systems. |
| Missiles and Fire Control | ~19% ($14.5bn) | PAC-3, THAAD, HIMARS, Javelin and precision-strike weapons; fastest-growing segment in 2025. |
| Space | ~17% ($13.0bn) | Satellites, strategic and missile-defence systems, and space-based sensing. |
4. Business Model and Moat
How it makes money. Lockheed earns the bulk of its revenue from long-term US Government and allied contracts to develop, produce and sustain military platforms and systems. Production contracts are followed by multi-decade sustainment, spares and upgrade work — the F-35, for example, generates revenue across development, production and decades of fleet support.
Why the moat is durable. Defence primes are protected by enormous barriers to entry: security clearances, classified know-how, multi-year qualification, and incumbency on platforms that, once selected, are effectively irreplaceable for their service lives. A record backlog locks in future revenue, and the customer base is the world's best-funded military.
Capital and returns. The business is R&D- and capital-intensive but converts mature programmes into steady cash, which Lockheed has returned through more than 20 years of dividend increases and consistent share repurchases.
5. Financial Health
Lockheed has grown revenue steadily since a flat 2022, reaching a record $75.05bn in 2025. Earnings dipped in 2025 on programme charges and a pension settlement. Lockheed does not publish a single non-GAAP “adjusted EPS”; the Adjusted EPS column below mirrors GAAP, with 2025 GAAP EPS including a $479m pre-tax pension settlement charge. All figures are from Lockheed earnings releases and SEC filings.
| Year | Revenue ($bn) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| 2021 | 67.04 | — | $22.76 | $22.76 | $10.60 | $11.68bn |
| 2022 | 65.98 | −1.6% | $21.66 | $21.66 | $11.40 | $15.55bn |
| 2023 | 67.57 | +2.4% | $27.55 | $27.55 | $12.15 | $17.46bn |
| 2024 | 71.04 | +5.1% | $22.31 | $22.31 | $12.75 | $20.27bn |
| 2025 | 75.05 | +5.6% | $21.49 | $21.49 | $13.35 | $21.70bn |
Quarterly trend through FY2025 (most recent first):
| Quarter | Revenue ($bn) | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q4 2025 | 20.32 | $5.80 | $5.80 |
| Q3 2025 | 18.61 | $6.95 | $6.95 |
| Q2 2025 | 18.16 | $1.46 | $1.46 |
| Q1 2025 | 17.96 | $7.28 | $7.28 |
| FY2025 total | 75.05 | $21.49 | $21.49 |
Q2 2025 GAAP EPS was depressed by classified-programme losses recognised that quarter. FY2025 operating cash flow was $8.56bn and capital expenditure $1.65bn, giving free cash flow of about $6.9bn. Year-end cash stood at $4.12bn against total debt of about $21.70bn. You can monitor live price action on the ChartsView Live Charts page.
6. Valuation
Raw metrics, June 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$118bn (share price ~$513, early June 2026) |
| Trailing P/E (GAAP) | ~23.9x (price $513 / FY2025 GAAP EPS $21.49) |
| P/E (forward) | ~17.2x (price $513 / 2026 EPS guidance midpoint ~$29.80) |
| P/S (TTM) | ~1.58x (market cap $118bn / FY2025 sales $75.05bn) |
| Enterprise value | ~$136bn (market cap $118bn + total debt ~$21.7bn − cash ~$4.1bn per FY2025 balance sheet) |
| EV/EBITDA (TTM) | ~14.4x (EV ~$136bn / EBITDA ~$9.4bn; EBITDA = operating income $7.73bn + D&A $1.69bn per FY2025 statements) |
| P/FCF | ~17.2x (market cap $118bn / FCF ~$6.9bn; FCF = operating CF $8.56bn − capex $1.65bn per FY2025 cash flow statement) |
| 52-week high | $692.00 |
| 52-week low | $410.11 |
| Short interest (% of float) | ~1.29% (approx 2.55m shares; per FINRA bi-monthly data via aggregators) |
| Days to cover | ~1.6 |
7. Growth Drivers
Lockheed's growth is anchored by elevated global defence spending and a record backlog. The clearest near-term driver is munitions: Missiles and Fire Control grew 14% in 2025 and is guided to grow another 14% in 2026, with the $4.76bn PAC-3 MSE award lifting annual interceptor output toward 2,000 units. The F-35 franchise continues to expand through record deliveries (191 in 2025) and large sustainment and armament awards. Newer avenues include the US Golden Dome space-based interceptor programme, where Lockheed was among the companies selected for prototype work, and continued Space-segment growth in strategic and missile-defence systems. Management guides FY2026 sales of $77.5–$80.0bn and diluted EPS of $29.35–$30.25, implying a strong rebound from the charge-affected 2025. Track macro and defence-budget catalysts on the ChartsView Economic Calendar.
8. Peer Comparison
| Peer | Market cap (June 2026) | Key 2025 metric |
|---|---|---|
| RTX Corporation (RTX) | ~$235bn | FY2025 revenue $88.60bn; backlog $268bn |
| Northrop Grumman (NOC) | ~$70bn (approx) | FY2024 revenue $41.03bn |
| General Dynamics (GD) | ~$80bn (approx) | FY2024 revenue $47.7bn (group) |
Lockheed is the most defence-concentrated of the large US primes, with less commercial-aerospace exposure than RTX and a heavier weighting to combat aircraft and missiles than General Dynamics.
9. Insider Activity
Recent Form 4 filings show modest executive share sales, several tied to equity vesting or pre-arranged plans:
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Timothy S. Cahill (President, Missiles & Fire Control) | 11 Mar 2026 | Sale | 4,620 | Various (8 lots) | Not disclosed | Open market |
CEO James Taiclet reported no open-market sales over the prior 18 months; his holdings are subject to the company's executive share-ownership guidelines. Executive sales can reflect personal diversification or tax planning rather than a view on the business.
10. Key Risks
- Fixed-price programme losses (financial): Classified and other fixed-price contracts have produced charges; further losses would hit earnings and cash.
- US Government concentration (macro/political): The vast majority of revenue depends on US defence budgets, appropriations timing and procurement choices.
- F-35 platform dependence (operational): Heavy reliance on one programme means schedule, upgrade or funding setbacks would be material.
- Pension and accounting items (financial): Pension settlement and FAS/CAS adjustments add volatility to reported earnings.
- Export and regulatory (regulatory): Foreign military sales are subject to government approval, export controls and geopolitical shifts.
11. Recent Developments
- 31 May 2026 — Wartime contract buildup. Lockheed was awarded roughly $1bn in military contracts amid heightened Middle East tension, underscoring demand for munitions and air defence.
- 26 May 2026 — F-35 sustainment order. Aeronautics received a $100.4m order for F-35 brake assembly heat sinks, alongside an $879m F-35 armament order during May.
- 25 Apr 2026 — Golden Dome selection. Lockheed was among companies selected by the US Space Force for space-based interceptor prototype work under the Golden Dome initiative.
- 29 Jan 2026 — FY2025 results. Lockheed reported record sales of $75.05bn, GAAP EPS of $21.49 and a record ~$194bn backlog, and issued 2026 guidance of $77.5–$80.0bn sales and $29.35–$30.25 EPS.
12. Key Dates
- 21 Jul 2026 — expected Q2 2026 earnings release
- 26 Jun 2026 — Q2 2026 dividend payment date (ex-dividend 02 Jun 2026)
- 29 Jan 2026 — FY2025 results released
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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. Lockheed Martin is the world's largest pure-play defence contractor, generating revenue from long-term US and allied government contracts to build and sustain platforms such as the F-35 fighter and PAC-3 interceptor. In FY2025 it reported record sales of $75.05bn (up 5.6%) and GAAP EPS of $21.49 (down 4% on programme and pension charges), with a record ~$194bn backlog; management has guided FY2026 EPS to $29.35–$30.25. The clearest growth driver is the missile super-cycle, with PAC-3 output ramping toward 2,000 units a year, alongside the F-35 franchise and new Golden Dome opportunities.
What would confirm or break it. A rebound to guided 2026 earnings, continued large missile and F-35 awards and stable free cash flow would confirm the bull case. Further fixed-price programme losses, a downturn in US defence appropriations, or an F-35 schedule or funding setback would invalidate the thesis.
Watchpoints
- ConfirmsQ2 2026 earnings (48 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Record backlog:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Fixed-price programme losses (financial):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 3 Jun 2026.