Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 6 Mar, 26 | LMT | Buy | USD 655.0 | USD 692.0 | USD 720.0 | 42 days | Closed |
9.92%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government. Lockheed Martin Corporation was founded in 1912 and is headquartered in Bethesda, Maryland.
Operating Margin Improvement: FY25 consolidated operating margin improved to 10.3% compared with FY24 operating margin of 9.9%,
Significant Expansion in Missiles & Fire Control Profitability: FY25 operating profit in the Missiles and Fire Control segment increased to USD 1,989 million from FY24 operating profit of USD 413 million
Aeronautics Profitability Pressure: FY25 Aeronautics operating profit declined to USD 2,086 million from FY24 operating profit of USD 2,523 million
Decline in Net Earnings: FY25 net earnings decreased to USD 5,017 million compared with FY24 net earnings of USD 5,336 million
Lockheed Martin’s financial performance remains highly dependent on U.S. government defense budgets, program execution risks on complex fixed-price contracts, supply-chain constraints in advanced defense technologies, and geopolitical or policy changes that could influence procurement priorities and export approvals
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 655.0 | 590.0 | 692.0 | 720.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Expansion Supported by Defense Demand: During FY25, Lockheed Martin delivered steady revenue growth supported by rising defense spending and strong demand across several mission-critical programs. The company reported total sales of USD 75,048 million in FY25 compared with USD 71,043 million in FY24, reflecting continued momentum across aeronautics, missile systems, and space programs. The growth was driven primarily by higher production and sustainment activity on major platforms such as the F-35 fighter aircraft and missile defense systems.
Segment-Level Growth Across Core Programs: Operational performance benefited from higher activity across key business segments. Aeronautics sales increased to USD 30,257 million in FY25 from USD 28,618 million in FY24, supported by stronger F-35 production and sustainment activity. Missiles and Fire Control also demonstrated strong momentum as sales rose to USD 14,450 million in FY25 compared with USD 12,682 million in FY24, driven by increased production of precision-guided munitions and missile defense systems such as PAC-3 and JASSM/LRASM programs.
Operating Profit Growth Despite Program-Level Volatility: The company reported consolidated operating profit of USD 7,731 million in FY25 compared with USD 7,013 million in FY24, reflecting an overall improvement in operating efficiency and segment profitability. Operating margin expanded to approximately 10.3% in FY25 from 9.9% in FY24, supported by improved profitability in the Missiles and Fire Control segment and favorable program performance in the Space division.
Mixed Segment Profitability Trends: While several segments demonstrated growth, performance across the portfolio remained uneven. Missiles and Fire Control recorded a significant increase in operating profit to USD 1,989 million in FY25 from USD 413 million in FY24 as production ramps on precision-fire systems accelerated. However, Aeronautics operating profit declined to USD 2,086 million in FY25 from USD 2,523 million in FY24 due to unfavorable adjustments on certain programs including the C-130 platform. Similarly, Rotary and Mission Systems operating profit decreased to USD 1,323 million in FY25 from USD 1,921 million in FY24 due to program charges and weaker profit booking rates.
Earnings and Net Income Performance: Despite higher operating income, bottom-line earnings declined modestly due to pension-related expenses and other non-operating adjustments. Net earnings totaled USD 5,017 million in FY25 compared with USD 5,336 million in FY24, while diluted earnings per share decreased to USD 21.49 from USD 22.31 over the same period. The company also recorded a non-operational pension settlement charge during FY25 that weighed on reported profitability.
Cash Flow Strength and Capital Allocation: Lockheed Martin continued to generate strong cash flows, with operating cash flow increasing to USD 8,557 million in FY25 compared with USD 6,972 million in FY24. The company used this strong liquidity position to return capital to shareholders through USD 3,000 million of share repurchases and USD 3,131 million in dividends during the year. Free cash flow generation remained robust at approximately USD 6.9 billion, supporting continued investments in research, development, and defense technologies.
Order Backlog and Strategic Demand Visibility: Operational visibility remained strong as the company ended FY25 with a total backlog of USD 193,622 million compared with USD 176,040 million in FY24. The backlog expansion was supported by higher orders across missiles, rotary systems, and space programs, highlighting sustained demand for advanced defense technologies in an increasingly complex global security environment.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Lockheed Martin Corporation (NYSE: LMT) at the closing market price of USD 655.0, as on Mar 05, 2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Aerospace & Defense
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| LMT Lockheed Martin Corporation |
-21.37 4.01% | 510.95 | 16.39 | 16.42 | 1.62 | 11.98 | 1.85 | 11.95 |
| GE GE Aerospace |
0.61 0.17% | 357.64 | 35.57 | 40.82 | 6.53 | 16.98 | 7.09 | 26.97 |
| BA The Boeing Company |
-2.91 1.29% | 222.72 | 88.37 | 153.85 | 1.93 | 31.61 | 2.21 | 26.81 |
| EADSY Airbus Group NV |
- -% | 55.00 | 26.90 | 24.39 | 2.26 | 5.35 | 1.79 | 12.83 |
| EADSF Airbus Group SE |
- -% | 220.48 | 25.86 | 24.21 | 2.15 | 5.30 | 1.79 | 12.83 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on March 6, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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