Lockheed Martin (LMT)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
$525.28-1.44%
Close 2026-09-04 · 1-day change
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
QuarterlyIQ Insights · LMT
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks LMT against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated strong grew net income 67% of the time over the next year (vs 52% for the rest of the cohort, n=6958).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 1 guided quarters · 40.4% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on driving year-over-year sales growth around 8% and segment operating profit growth around 28% in 2026, supported by increased volume and production ramps.
Stated as a priority in 4 of last 4 quarters. Sales grew from $18.2B in 2025-Q2 to $20.1B in 2026-Q2 (+11%). Management raised 2026 segment operating profit guidance from $8.4B-$8.7B to $8.5B-$8.7B, reflecting a 25-28% expected increase year-over-year. The trajectory matches management's stated accelerated growth focus, delivering on volume ramps and backlog expansion.
“We now anticipate accelerated year-over-year sales growth of approximately 8%, driving 28% higher segment operating profit...”
“We reaffirm our 2026 full year guidance with anticipated sales and operating profit growth of approximately 5% and 25% year-over-year, respectively.”
“We expect sales and reported segment operating profit growth of approximately 5% and 25% year-over-year, respectively.”
“Based on the effectiveness and reliability of our products and systems, strong demand continues... record backlog of $179 billion...”
Target free cash flow exceeding $7 billion in 2026, supported by strong cash from operations and disciplined capital expenditures.
Management stated free cash flow targets in 4 of last 4 quarters. Free cash flow improved from negative $150M in 2025-Q2 to $2.9B in 2026-Q2. The 2026 guidance was raised from $6.5-$6.8B to $7.0-$7.2B, reflecting strong operational cash generation and disciplined capex. The trajectory is delivering consistent improvement aligned with stated priorities.
“Free cash flow was $2.9 billion in the second quarter of 2026, compared to $(150) million in the second quarter of 2025.”
Continue investing over $3 billion annually in production capacity, next-generation technologies, and digital transformation to support growth and operational excellence.
Management emphasized strategic investments in 3 of last 4 quarters. Capital expenditures totaled $829 million in first half 2026, supporting production capacity and innovation. Prior year investments exceeded $3.5 billion in 2025. The trajectory shows sustained disciplined capital allocation aligned with growth and operational priorities.
Accelerate production rates by 3-4 times on critical missile systems through multi-year framework agreements and supply chain enhancements.
Management stated this priority in 2 of last 4 quarters. They signed multi-year framework agreements and a $35 billion contract to accelerate missile production. While specific volume or revenue milestones are not disclosed, these agreements underpin the stated goal to increase production rates 3-4 times. The trajectory shows progress in contract execution supporting production scale-up.
Continue to maintain free cash flow between $6.5 and $6.8 billion for 2026.
Over the trailing year it converted 0.85x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 53% for the rest of the cohort, n=6654).
Not enough signal yet.
Not enough signal to read sensitivity to the broad stock market, the US dollar, Fed net liquidity, long-term interest rates, real (inflation-adjusted) rates (low R² over the window).
8 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Industrials names rated stable grew net income 55% of the time over the next year (vs 58% for the rest of the cohort, n=2546).
Not investment advice. As of 2026-09-04.
“Free cash flow was $(291) million in the first quarter of 2026, compared to $955 million in the first quarter of 2025.”
“Free cash flow was $2.8 billion in the fourth quarter of 2025, compared to $441 million in the fourth quarter of 2024.”
“Free cash flow was $3.3 billion in the third quarter of 2025, compared to $2.1 billion in the third quarter of 2024.”
“Our cash activities included capital expenditures of $511 million and independent research and development of $458 million.”
“We invested more than $3.5 billion during 2025 in production capacity and next-generation technologies throughout the year.”
“We are investing aggressively in both new digital technologies and physical production capacity needed to meet top defense priorities.”
“We took a major step forward in transforming munitions production by signing a $35 billion multi-year contract with the Missile Defense Agency for THAAD.”
“We signed several framework agreements to accelerate and scale munitions production, including advanced Patriot Missile, THAAD, and PrSM.”