📊 LMT Key Takeaways
Is Lockheed Martin Corp. (LMT) a Good Investment?
Lockheed Martin shows solid revenue growth (+5.6% YoY) and strong ROE (19.9%), but fundamentals are deteriorating with declining net income (-6.0%), negative free cash flow (-$291M), and elevated leverage (2.74x D/E). The combination of margin compression and weak cash generation poses financial stress despite stable defense sector positioning.
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
- Strong revenue growth of 5.6% YoY in stable defense/aerospace sector
- Solid ROE of 19.9% indicates effective capital returns
- Adequate interest coverage ratio of 8.1x demonstrates debt servicing capability
- 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
- Negative free cash flow of -$291M despite positive operating cash flow indicates working capital strain and CapEx exceeding cash generation
- High leverage ratio of 2.74x D/E limits financial flexibility; debt service vulnerable to revenue/margin deterioration
- Declining net income (-6.0% YoY) and diluted EPS (-3.7% YoY) despite revenue growth signals profit margin compression and operational headwinds
- Quick ratio of 0.94x below 1.0 indicates potential liquidity stress and reliance on working capital conversion
- 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
- Free cash flow trend and operating cash flow margin recovery
- Net profit margin recovery or continued compression
- Debt/Equity ratio reduction or stabilization
- Working capital management and quick ratio improvement
- 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 |
|---|---|---|---|
| Q1 2026 | $18.0B | $1.5B | $6.44 |
| 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 |
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 (HOLD) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LMT's key strengths?
Claude: Strong revenue growth of 5.6% YoY in stable defense/aerospace sector. Solid ROE of 19.9% indicates effective capital returns. 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: Negative free cash flow of -$291M despite positive operating cash flow indicates working capital strain and CapEx exceeding cash generation. High leverage ratio of 2.74x D/E limits financial flexibility; debt service vulnerable to revenue/margin deterioration. 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 $18.0B.
Does LMT pay dividends?
Lockheed Martin Corp. pays dividends, with $816.0M 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 $6.44.
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 May 2026, Lockheed Martin Corp. has a BUY rating with 74% 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 19.9% (sector avg: 15%), net margin of 8.3% (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 $220.0M, with capital expenditures of $511.0M. FCF margin is -1.6%.
How does LMT compare to other Market stocks?
Vs Default sector averages: Net margin 8.3% (avg: 12%), ROE 19.9% (avg: 15%), current ratio 1.14 (avg: 1.8).
Is Lockheed Martin Corp. carrying too much debt?
LMT has a debt-to-equity ratio of 2.74x, which is above the Market sector average of 0.7x. However, the current ratio of 1.14 suggests adequate short-term liquidity.