# Lockheed Martin Corporation (LMT) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/LMT/thesis · /stocks/LMT/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/LMT/fundamental

## Navigation

- Overview: /stocks/LMT
- Financials (this page): /stocks/LMT/financials
- Thesis: /stocks/LMT/thesis
- Investment Memo: /stocks/LMT/memo
- Coverage universe: /stocks