Lockheed Martin dropped ~10% after Q2 earnings, mainly due to several large charges tied to classified and international programs. This hit GAAP earnings hard, forced a cut to full-year EPS guidance, and even led to negative free cash flow for the quarter.

That said, adjusted EPS actually beat expectations, revenue guidance was reaffirmed, and the company still has a $166B+ backlog. Demand for defense remains strong, and their core programs like the F-35 and missile systems are still solid.

Is the selloff just a reaction to one rough quarter, or does it point to deeper execution issues? Does the long-term story still hold up here?

Curious to hear what your opinion is. Buying opportunity or stay away?

What are your thoughts on Lockheed Martin following this dip? Do you believe this presents a good entry point, or is the company no longer what it once was?

I bought some in October and it has been falling/stalking ever since. Is something going wrong in their projects?

Lockheed Martin (LMT) shares tumbled Tuesday as the defense contractor missed revenue estimates on a drop in aerospace sales.

The company reported third-quarter revenue rose 1% year-over-year to $17.10 billion, while analysts surveyed by Visible Alpha were looking for $17.38 billion. Earnings per share (EPS) of $6.80 exceeded forecasts.

Lockheed's Aeronautics unit sales declined 3% to $6.49 billion, primarily because of delays in contractual authorization and funding for the F-35 fighter jet. Sales at its Space division were down less than 1% to $3.08 billion. Missiles and Fire Control segment revenue jumped 8% to $3.18 billion, and Rotary and Mission Systems unit revenue was 6% higher at $4.37 billion.

The company raised its full-year EPS outlook to $26.65 from a range of $26.10 to $26.60, and narrowed its revenue outlook to $71.25 billion from the previous $70.50 billion to $71.50 billion.

Shares of Lockheed Martin hit an all-time high yesterday, and even with today's roughly 5% declines they're up nearly 30% year-to-date.

https://www.investopedia.com/lockheed-martin-stock-sinks-as-f-35-sales-decline-weighs-on-revenue-8732059

For whatever reason I can't post images but shares dumped heavily on earnings due to a classified project cutting into earnings. It's safe to say defense is one area where Trump admin has no interest in cutting and will continue to award whatever contracts it can to LMT, but real issues to growth lie in the following:

Lockheed mentioned elevated expenses on fixed-price contracts, numerous entered into prior to the post-pandemic rise in labour and materials costs. The company added inflation and a persistent lack of supply chain availability is straining long-term defense systems.

Is this a defense stock that can turn it around and go the way of RTX or something that can freefall for a while?

LMT has gotten hammered over the past couple months because of news the company is gonna miss slightly on F-35 deliveries. Selling for a reasonable valuation of 14 times for a secular company that isn't gonna be growing at a high rate but whose clients are extremely dependable. Decent share buyback and 3% dividend that eats up less than half FCF. Not much debt. From a technical aspect, seems to be hitting a 4-year support level at 395. Does this seem like a good time to open a long position? Thank you

I saw yesterday that Biden was talking about the need to help israel and Ukraine, and even calling for something like 100 billion from Congress. He even mentioned missle manufacturing in Tucson which is where Raytheon is headquartered I believe. I thought this would make Lockheed shoot up . Looking for some insights

Net sales of $18.9 billion in the fourth quarter and $67.6 billion in 2023

Net earnings of $1.9 billion, or $7.58 per share in the fourth quarter; $6.9 billion, or $27.55 per share in 2023

Cash from operations of $2.4 billion and free cash flow of $1.7 billion in the fourth quarter; cash from operations of $7.9 billion and free cash flow of $6.2 billion in 2023

$3.8 billion of cash returned to shareholders through dividends and share repurchases in the fourth quarter, and $9.1 billion in 2023

Record backlog of $160.6 billion

BETHESDA, Md., Jan. 23, 2024 /PRNewswire/ -- Lockheed Martin Corporation [NYSE: LMT] today reported fourth quarter 2023 net sales of $18.9 billion, compared to $19.0 billion in the fourth quarter of 2022. Net earnings in the fourth quarter of 2023 and 2022 were $1.9 billion, or $7.58 and $7.40 per share, respectively. Cash from operations was $2.4 billion in the fourth quarter of 2023, compared to $1.9 billion in the fourth quarter of 2022. Free cash flow was $1.7 billion in the fourth quarter of 2023, compared to $1.2 billion in the fourth quarter of 2022.

Net sales in 2023 were $67.6 billion, compared to $66.0 billion in 2022. Net earnings in 2023 were $6.9 billion, or $27.55 per share, compared to $5.7 billion, or $21.66 per share, in 2022. Cash from operations in 2023 was $7.9 billion, compared to $7.8 billion in 2022. Free cash flow in 2023 was $6.2 billion, compared to $6.1 billion in 2022.

"Our solid finish to 2023 and full-year results reflect continued strong demand for our all-domain portfolio of advanced defense tech solutions. Backlog reached a record $160.6 billion billion and sales increased 2 percent year-over-year to $67.6 billion," said Lockheed Martin Chairman, President and CEO Jim Taiclet. "In 2023 we invested $1.5 billion in research and development and an additional $1.7 billion of capital expenditures to create, accelerate and refine the development of innovative 21st Century Security capabilities. In line with our expectations, we generated $6.2 billion of free cash flow for the year, supporting strong free cash flow per share growth, and we returned over $9 billion to shareholders through dividends and share repurchases.

"Looking ahead to 2024 and beyond, our opportunities to support global security for the U.S. Government and its allies remain robust with traditional and breakthrough technologies. Our team will continue to realize the vision for 21st Century Security integrated platforms and systems, working with industry and commercial partners to pioneer and mature deterrence solutions for customers worldwide. Inside the company, our 1LMX digital transformation initiative will further materialize and drive speed, resiliency, efficiency and competitiveness across our operations. As a result, we anticipate continued top-line growth in 2024 and sustained cash flow conversion and deployment, in support of our mid-single digit growth target in free cash flow per share."

https://www.prnewswire.com/news-releases/lockheed-martin-reports-fourth-quarter-and-full-year-2023-financial-results-302041229.html#:~:text=BETHESDA%2C%20Md.%2C%20Jan.,and%20%247.40%20per%20share%2C%20respectively.

What do y’all think of LMT? Nice dividend. Off from highs and with big investments in defense do y’all think this is a good one to buy and hold on to?

With conflicts in Ukraine, Gaza, and rising global defense budgets, Lockheed Martin is getting serious attention again. But has the “war trade” already played out?

Quick Facts:

• Maker of F-35s, Javelins, HIMARS — all in high demand.

• U.S. defense budget heading toward $895B.

• Major NATO countries increasing spending.

• Fundamentals: Solid balance sheet, ~2.6% dividend yield, low P/E (~16.5).

Bullish View:

• Long-term gov contracts = stable revenue.

• Global rearmament = multi-year tailwind.

• Attractive dividend + buybacks.

Risks:

• If tensions cool, LMT might lose momentum.

• Program delays + political shifts can hurt growth.

• Already near technical highs (watch for pullbacks).

My Take:
LMT is like a hedge on global chaos — stable, high-margin, and backed by governments. I’m watching for dips near $450 and scaling in slowly. This isn't hype; it’s long-term macro positioning.

I also write a newsletter breaking down these types of opportunities. If you want deeper dives like this each week, check it out here:

https://wealth-whispers.beehiiv.com/subscribe

It appears that either China or the aliens are invading the US. Either one of these situations would cause the US to bolster their military and purchase more equipment. Lockheed Martin is the biggest defense contractor for the government, so would this be a wise place to invest?

The war in Ukraine as also depleted much of our weapon arsenal, so it seems likely the US will increase their purchases of military equipment.

LMT has always been on my radar, but with the recent price dip ($350), it seems to have some good characteristics.

Dividend is about 3% with payout ratio less than 40%. They have also been consistently buying back shares.

I did my own DCF calc and came up with an intrinsic value of $414. Analyst average price target is $430.

Operating margins are consistently improving and ROIC is excellent.

The elephant in the room is the US defense budget going forward. It’s been consistently increasing for quite a while, but they’d obviously be in trouble if it were cut.

That’s what I’ve found so far. I’d appreciate input from others.

Hey r/investing,

With some recent developments in the defense sector, I think it’s worth taking a closer look at Lockheed Martin (LMT). Here’s why:

1. New Contracts: LMT just bagged a $175M contract for the F-35 Fighter Aircraft, showcasing its ongoing dominance in the aerospace sector. This is on top of a massive $443M contract for the Black Hawk helicopter. These contracts not only boost revenue but also reaffirm Lockheed’s position as a top defense contractor. If this all wasn’t enough, the House and Senate have just approved a $886.3 billion defense policy bill, and Lockheed Martin, being a leading defense contractor, often benefits from increased defense spending.

2. Stable Revenue Stream: Lockheed’s consistent government contracts, especially from the U.S. Department of Defense, provide a stable and predictable revenue stream. In an uncertain economic climate, this stability is gold.

3. Innovation Leader: LMT is at the forefront of defense technology. From advanced fighter jets to cutting-edge missile systems, their focus on R&D means they’re ahead of the curve.

4. Dividend Payouts: Lockheed’s history of paying dividends is attractive. They’ve been known to increase their dividend payouts.

5. Global Security Demand: With rising global security challenges, the demand for defense equipment isn’t going down anytime soon. Lockheed, with its diverse range of defense products, is well-positioned to meet this demand.

6. Economic Resilience: Defense stocks like LMT tend to be more resilient to economic downturns. Defense spending often remains stable or even increases, regardless of the economic climate.

However, it’s not all sunshine and rainbows. There are risks, like dependency on government policies and global political dynamics. But overall, LMT’s recent contract wins and its strong position in the defense sector make it a stock worth considering.

What do you all think? Is LMT a good long-term play, or are there better options out there in the defense sector?

Disclaimer: This is not financial advice. Always do your own research before investing.

Edit: grammar

Trump’s first international trip back in office kicked off $2 trillion in trade and defense deals across the Gulf. That includes $600B from Saudi Arabia, $243.5B from Qatar, and $200B from the UAE. Lockheed Martin is at the center of it all.

We’re not just talking about jets and missiles. These contracts come with multi-year sustainment, logistics, and training deals. These are recurring, high-margin revenue that stretches for years.

So far in 2025, Lockheed secured confirmed deals totaling at least $3.75 billion including F-15 sustainment, THAAD upgrades, PAC-3 interceptors, and more. And that’s just the start. Based on current negotiations, there’s up to $90 billion in future contracts on the table.

$90 Billion in Expected Future Deals‍

Based on ongoing negotiations tied to Trump’s newly signed defense agreements,

Lockheed Martin is projected to secure:‍
$50 billion from Saudi Arabia
$25 billion from the UAE
$15 billion from Qatar

Even if a fraction of that hits, it could mean billions in long-term profit and serious upside to the stock. Yet the market hasn’t fully priced it in.

LMT stock is quietly compounding returns with steady contracts and a 2.8% dividend yield to match.

Is now a good time to jump into $LMT? Thoughts for long term?

Hello community,

For the past few weeks, I have been studying Lockheed Martin as a potential investment. The main reason is that the valuation seems to be relatively modest (PE ~16x), despite all of the following:

- Great fundamentals (high Return on Capital, high turnover and margins, high but sustainable debt),

- A good shareholder remuneration with growing dividends and decreasing share count,

- Significant barriers to entry due to proprietary technology, intangible assets, switching costs from its products, huge capital investments required to enter the business,

I have gathered my thoughts in the following post:

Lockheed Martin - Analysis

I find that writing helps a lot organising ideas. However, I am not an expert in the field and have only spent a good chunk of hours (but not months, nor years) studying the business.

For this reason, I would appreciate your point of view and possibly identify any flaws in my analysis that could prevent me from doing a mistake.

Thank you very much!