Lockheed Martin Corporation

LMT
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$18.0B
Q1 2026 · -1.7% YoY · Missed consensus by 2.2%
TTM ROIC
20.5%
FY2025 · GAAP Net Income / (Total Equity + Long-Term Debt); defense-adjusted variant also computed ex. customer advances · WACC ~7.6% · Moat spread +13.4pp

Financial Snapshot

ticker: LMT step: 04 generated: 2026-05-12 source: quick-research

Lockheed Martin Corporation (LMT) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Revenue $67.6B $71.0B $75.05B +5.6%
Q4 Revenue (FY25) — $18.6B $20.3B +9%
Segment Operating Margin 11.0% 9.8% (FY24 charges) ~11% recovery +120 bps
Diluted EPS $27.55 $22.31 ~$27 recovery from FY24 charges

Segment Detail (FY2025 approximate)

Segment FY25 Revenue YoY
Aeronautics ~$30B mid-single-digit
Missiles and Fire Control ~$13B strong growth (PAC-3 + JASSM ramp)
Rotary and Mission Systems ~$18B mid-single-digit
Space ~$13B mid-single-digit

Cash Flow & Capital Allocation (FY2025)

Metric Value
Operating Cash Flow ~$8B
Capital Expenditures ~$1.7B
Free Cash Flow ~$6.3B
Share Repurchases ~$3B
Dividends Paid ~$3.1B
Quarterly Dividend $3.45
Annual Dividend $13.80
Dividend Yield ~2.8%
Cash & Marketable Securities ~$2.5B
Total Debt ~$20B
Backlog (FY25 End) $194B (record)

FY2026 Guidance

Metric 2026 Guide
Revenue $77.5–80.0B (+5% organic)
Segment Operating Profit Growth +25%+ YoY (recovery from FY24 charges)
Diluted EPS $29.35–30.25
Free Cash Flow $6.5–6.8B
F-35 Production Rate 156 aircraft/yr
MFC Sales Growth +14% (midpoint)

Key Ratios (approximate)

  • P/E: ~16x (FY26 EPS midpoint $29.80) | EV/EBITDA: ~11x | FCF Yield: ~5.5%
  • Revenue Growth (FY25): +5.6%
  • Segment Operating Margin: ~11% (recovering)
  • Dividend Yield: ~2.8% | Buyback Yield: ~2.5%
  • Backlog: $194B (multi-year revenue visibility)
  • Book/Bill Ratio: ~1.1x

Growth Profile

FY25 was a record year operationally:

  • Revenue +5.6% to $75B
  • Record $194B backlog (+6% YoY)
  • Q4 revenue +9% to $20.3B accelerating
  • FY26 guide implies continued ~5% organic growth + +25% operating profit recovery from FY24 charges

The 2026-2028 setup:

  • 2026: PAC-3 capacity ramp + Skunk Works classified + Trident II D5 LE production + F-35 stable
  • 2027: Trump defense budget acceleration; MFC capacity additions
  • 2028: Full PAC-3 capacity at 2,000/yr; F-35 sustainment expanding; classified programs maturing

CEO Jim Taiclet has positioned Lockheed as the digital backbone of 21st-century warfighting — combining sensor + missile + platform + classified programs into the most comprehensive defense portfolio.

Forward Estimates

FY2026 Guide:

  • Revenue: $77.5–80B (+5% organic)
  • Adjusted EPS: $29.35–30.25 (+8–11%)
  • Free Cash Flow: $6.5–6.8B
  • Segment Operating Profit Growth: +25%+

Bull case: Trump $1.5T defense budget materializes; PAC-3 capacity ramps faster than 2027; Foreign Military Sales accelerate; FY27 revenue +8% with margins expanding to 12%+; EPS reaches $34+; multiple expands to 19x P/E; stock could reach $670+. Bear case: F-35 cost overruns intensify; NGAD pivot to Boeing accelerates; PAC-3 ramp delays; multiple compresses to 14x; stock stays $420-450. Consensus targets ~$580–640 vs. trading ~$485–510 (~15–25% implied upside).

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $LMT.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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