📊 LMT Key Takeaways
Is Lockheed Martin Corp. (LMT) a Good Investment?
Lockheed Martin demonstrates exceptional financial health with strong cash generation (6.9B FCF), dominant profitability metrics (10.3% operating margin, 8.4% ROA), and impressive liquidity despite high leverage. The business model shows resilience with consistent operating cash flow conversion, though near-term net income headwinds (-6.0% YoY) and elevated debt levels warrant monitoring.
Lockheed Martin shows solid fundamental quality with mid-single-digit revenue growth, resilient double-digit operating margins, and strong free cash flow generation. Financial health is acceptable rather than pristine, as very high leverage and a thin equity base offset otherwise strong interest coverage and dependable cash production. The core case rests on durable profitability and cash conversion, but earnings softness and balance-sheet leverage keep the outlook from being stronger.
Why Buy Lockheed Martin Corp. Stock? LMT Key Strengths
- Exceptional free cash flow generation of 6.9B with 9.2% FCF margin indicates high-quality earnings and strong capital allocation capacity
- Outstanding ROE of 74.6% and ROA of 8.4% demonstrate efficient asset utilization and shareholder value creation
- Fortress balance sheet liquidity with 4.1B cash and 30.3x interest coverage ratio provides substantial financial flexibility despite 3.23x debt/equity leverage
- Stable revenue growth of 5.6% YoY in defense/aerospace sector with consistent operating margin of 10.3% reflects pricing power and operational discipline
- Consistent top-line growth with revenue up 5.6% year over year
- Strong cash generation with $6.91B in free cash flow and a 9.2% FCF margin
- Healthy operating performance with 10.3% operating margin and 30.3x interest coverage
LMT Stock Risks: Lockheed Martin Corp. Investment Risks
- Net income declined 6.0% YoY while revenue grew 5.6%, indicating margin compression or increased non-operating expenses requiring investigation
- High financial leverage at 3.23x debt/equity with 21.7B long-term debt could limit strategic flexibility if interest rates remain elevated or defense budgets contract
- Current ratio of 1.09x and quick ratio of 0.94x suggest tight short-term liquidity despite adequate operating cash flow; working capital management is critical
- EPS dilution of 3.7% YoY signals potential share issuance or earnings headwinds that may not align with revenue growth trajectory
- Net income and diluted EPS declined despite revenue growth, suggesting margin or cost pressure
- High leverage with debt-to-equity of 3.23x and only $6.72B of equity
- Liquidity is adequate but not strong, with a 1.09x current ratio and 0.94x quick ratio
Key Metrics to Watch
- Net income margin trend and drivers of YoY decline - distinguish between operational challenges vs. tax/financing impacts
- Free cash flow sustainability and capital allocation priorities (dividends, debt reduction, buybacks, acquisitions)
- Debt/equity ratio trajectory and refinancing schedule in rising rate environment
- Operating margin stability amid potential defense spending cycles and competitive pressures
- Working capital efficiency to improve current ratio and cash conversion cycle
- Operating margin and net margin trend
- Free cash flow generation versus debt levels
Lockheed Martin Corp. (LMT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Lockheed Martin Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LMT Profit Margin, ROE & Profitability Analysis
LMT vs Market Sector: How Lockheed Martin Corp. Compares
How Lockheed Martin Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lockheed Martin Corp. Stock Overvalued? LMT Valuation Analysis 2026
Based on fundamental analysis, Lockheed Martin Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lockheed Martin Corp. Balance Sheet: LMT Debt, Cash & Liquidity
LMT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lockheed Martin Corp.'s revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $27.55 reflects profitable operations.
LMT Revenue Growth, EPS Growth & YoY Performance
LMT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $17.1B | $1.6B | $6.80 |
| Q2 2025 | $18.1B | $342.0M | $1.46 |
| Q1 2025 | $17.2B | $1.5B | $6.39 |
| Q3 2024 | $16.9B | $1.6B | $6.73 |
| Q2 2024 | $16.7B | $1.6B | $6.63 |
| Q1 2024 | $15.1B | $1.5B | $6.39 |
| Q3 2023 | $16.6B | $1.7B | $6.71 |
| Q2 2023 | $15.4B | $309.0M | $1.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lockheed Martin Corp. Dividends, Buybacks & Capital Allocation
LMT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lockheed Martin Corp. (CIK: 0000936468)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LMT
What is the AI rating for LMT?
Lockheed Martin Corp. (LMT) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LMT's key strengths?
Claude: Exceptional free cash flow generation of 6.9B with 9.2% FCF margin indicates high-quality earnings and strong capital allocation capacity. Outstanding ROE of 74.6% and ROA of 8.4% demonstrate efficient asset utilization and shareholder value creation. ChatGPT: Consistent top-line growth with revenue up 5.6% year over year. Strong cash generation with $6.91B in free cash flow and a 9.2% FCF margin.
What are the risks of investing in LMT?
Claude: Net income declined 6.0% YoY while revenue grew 5.6%, indicating margin compression or increased non-operating expenses requiring investigation. High financial leverage at 3.23x debt/equity with 21.7B long-term debt could limit strategic flexibility if interest rates remain elevated or defense budgets contract. ChatGPT: Net income and diluted EPS declined despite revenue growth, suggesting margin or cost pressure. High leverage with debt-to-equity of 3.23x and only $6.72B of equity.
What is LMT's revenue and growth?
Lockheed Martin Corp. reported revenue of $75.0B.
Does LMT pay dividends?
Lockheed Martin Corp. pays dividends, with $3,131.0M distributed to shareholders in the trailing twelve months.
Where can I find LMT SEC filings?
Official SEC filings for Lockheed Martin Corp. (CIK: 0000936468) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LMT's EPS?
Lockheed Martin Corp. has a diluted EPS of $21.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LMT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lockheed Martin Corp. has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is LMT stock overvalued or undervalued?
Valuation metrics for LMT: ROE of 74.6% (sector avg: 15%), net margin of 6.7% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy LMT stock in 2026?
Our dual AI analysis gives Lockheed Martin Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LMT's free cash flow?
Lockheed Martin Corp.'s operating cash flow is $8.6B, with capital expenditures of $1.6B. FCF margin is 9.2%.
How does LMT compare to other Market stocks?
Vs Default sector averages: Net margin 6.7% (avg: 12%), ROE 74.6% (avg: 15%), current ratio 1.09 (avg: 1.8).
Is Lockheed Martin Corp. carrying too much debt?
LMT has a debt-to-equity ratio of 3.23x, which is above the Market sector average of 0.7x. However, the current ratio of 1.09 suggests adequate short-term liquidity.
Why is LMT's return on equity (ROE) so high?
Lockheed Martin Corp. has a return on equity of 74.6%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 6.7% net margin.