Company Overview
Lockheed Martin is a U.S. aerospace and defense contractor that designs and builds military aircraft, missiles, and space-related systems. It also provides mission systems and sustainment work tied to long-lived platforms. The business is built around large programs and ongoing support, with revenue tied to delivering equipment and servicing installed fleets. At roughly USD 141.7 billion in market value, it sits at the scale where durability matters more than novelty.
Analysis of recent data
FundamentalsIn 2025, reported in U.S. dollars, revenue reached USD 75.0 billion, up 5.6% year over year. EBIT was USD 183.0 million, with a trailing operating margin of 10.30% and gross margin of 10.24%.
Cash stood at USD 4.1 billion against total debt of USD 1.2 billion. Depreciation and amortization totaled USD 1.7 billion, while capital spending was USD 1.6 billion, leaving a cash-flow proxy of about USD 199.6 million after capital expenditures and before working-capital changes. Trailing return on equity was 80.53%.
Valuation
DCF / MultiplesThe shares trade at USD 615.84, against a discounted cash flow range from USD 492.22 in a weaker scenario to USD 781.04 in a central case and USD 1,157.94 in a stronger outcome. On headline multiples, the stock is priced at 28.24 times trailing earnings and 18.31 times EV/EBITDA.
Conclusion
TakeawayThe valuation case leans on long-lived cash generation. Today’s price sits between a cautious and optimistic cash-flow view. Durability needs to show up as dependable profits and reinvestment discipline. Thin margins leave less slack if execution slips. If cash stays resilient, the current pricing can hold.