Lockheed Martin Corporation (LMT)

Over the past six months, Lockheed Martin's stock has experienced several notable events. In Q2 2025, the company announced financial results that included pre-tax losses in its Aeronautics and RMS segments due to performance issues, leading to a drop in share price. The CFO, Jay Malave, left the company. In Q3 2025, Lockheed Martin reported strong results, with adjusted EPS of $6.95 and revenue of $18.61 billion. Following the Q3 earnings, the company announced a 5% dividend hike. Despite strong earnings, the company's shares fell after it adjusted its full-year free cash flow guidance. Lockheed Martin ended Q3 2025 with a record $179 billion backlog. Several analysts adjusted their price targets and ratings for LMT.

Demand for Lockheed Martin's products and services is primarily driven by government defense spending and long-term contracts, which tend to be less susceptible to typical consumer-driven seasonality. Fluctuations can occur related to government budget cycles, contract awards, and geopolitical events. The company's large backlog of $179 billion provides a degree of stability against short-term demand fluctuations. Management expects sustained defense demand and multi-year contracts to drive continued demand for missile defense, advanced aircraft, and space-based solutions, resulting in mid-single-digit organic growth targets.

Lockheed Martin Corporation is an American defense and aerospace manufacturer headquartered in North Bethesda, Maryland. It operates within the Industrials sector, focusing on Aerospace & Defense. The company researches, designs, develops, manufactures, integrates, and sustains advanced technology systems, products, and services, primarily for government customers, with a significant portion of its revenue (73% in 2024) coming from the U.S. federal government, including 65% from the U.S. Department of Defense. Lockheed Martin's operations are divided into four main business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space.

Lockheed Martin serves customers worldwide and has over 375 facilities globally. The company employs approximately 114,000 people and works with 16,000 active suppliers across every state in the U.S. and in more than 50 countries. While a significant portion of its revenue comes from the U.S. government, the company also has international sales.

Lockheed Martin's brand reputation in the past year has been influenced by several factors. The company faced scrutiny over disclosures regarding performance and financial problems in its Aeronautics and Rotary and Mission Systems (RMS) segments. Ongoing geopolitical tensions and increased global defense spending have generally positioned Lockheed Martin favorably. The company's consistent dividend growth contributes positively to its reputation among investors. The successful mating of the Lockheed Martin-developed Orion spacecraft with the Space Launch System (SLS) rocket for the Artemis II mission highlights its role in significant space exploration endeavors. Lockheed Martin has been sanctioned by the Chinese government multiple times due to arms sales to Taiwan, representing an ongoing geopolitical challenge.

Lockheed Martin shares are primarily held by institutional investors, who collectively held 1.1% of the company's total shares outstanding as of September 2025. Major institutional holders include CONFLUENCE INVESTMENT MANAGEMENT LLC, Welch Group, LLC, FORT WASHINGTON INVESTMENT ADVISORS INC /OH/, CWM, LLC, and ATWOOD & PALMER INC. As of October 2025, institutional ownership was reported at 75.59%. Chief Operating Officer Frank A. St. John reported open-market sales of common stock on October 23, 2025.