Fundamental analysis · SEC EDGAR · TTM through 28/06/2026

Fundamental analysis of Lockheed Martin Corp

LMT · NYSE · Industrial

Fundamental quality

REASONABLE

63

out of 100

Lockheed Martin Corp earns a fundamental-quality score of 63 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its financial strength (net debt 1.54× EBITDA). Its weakest area is its growth (revenue +3%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Lockheed Martin is the world's largest defense contractor: it builds the F-35 fighter, missiles, helicopters and space systems, almost all for the U.S. government and its allies. Multi-year contracts give it a huge, visible order backlog.

What will shape its future

  • U.S. and allied defense budgets, the factor that outweighs everything else.
  • The F-35 program, its biggest revenue source for decades, across sustainment and new orders.
  • Cost execution: fixed-price contracts turn overruns into its own losses.

Breakdown by area

I.Growth
36

EPS growth: 2% · Revenue growth: 3%

II.Profitability
61

Net margin: 8.2% · ROE: 71.7% · ROIC: 30.4%

III.Financial health
79

Net debt/EBITDA: 1.54x · FCF: 11.3%

Source: SEC EDGAR · TTM through 28/06/2026

The score includes +4 for dividend strength: 18 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 44%
ROEbeats 97%
Growthbeats 19%
Cash generationbeats 52%
Less debtbeats 61%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Lockheed Martin Corp strengths

  • Solid return on capital: its ROE (71.7%) is inflated by buybacks, but ROIC —which strips that out— is 30.4%.
  • Positive free cash flow year after year, a self-funding business.
  • Solid net margin (8.2%): the business is clearly profitable.

Lockheed Martin Corp risks and weaknesses

  • Its net debt has grown over the period.
  • Shrinking margins: net margin has fallen from 10% to 7% in recent years.

Lockheed Martin Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
202065,3986,8336,4179,009
202167,0446,3157,6998,072
202265,9845,7326,13213,000
202367,5716,9206,22916,017
202471,0435,3365,28717,787
202575,0485,0176,90817,579

Between 2020 and 2025, revenue went from $65,398M to $75,048M (+15%) and net income went from $6,833M to $5,017M (-27%). Meanwhile, its margins have narrowed (from 10% to 7%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 28, 2026, versus the half-year ended June 29, 2025 (SEC filings):

  • Revenue+5.4%
  • Net income+61.8%

What changed with the June 28, 2026 results

Compared with the previous close (March 29, 2026), this is what moved in its accounts:

  • Quality score5663
  • Net margin6.4%8.2%
  • ROE64%71.7%
  • FCF margin7.5%11.3%
  • Net debt/EBITDA2.06×1.54×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$13.35

per share, yearly

62.4% of earnings

Payout

at least 18 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Lockheed Martin Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Lockheed Martin Corp a good company to invest in?

In terms of business quality, Lockheed Martin Corp scores 63 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Lockheed Martin Corp a profitable company?

Lockheed Martin Corp is profitable, with a net margin of 8.2%, though a thin one.

Does Lockheed Martin Corp have a lot of debt?

A moderate level: its net debt is 1.54 times its EBITDA.

Is Lockheed Martin Corp growing?

Its revenue has grown 3% annualized in recent years and its earnings per share 2%.

Does Lockheed Martin Corp generate cash?

Yes. It converts about 11.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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