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. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments. 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. The company was founded in 1912 and is based in Bethesda, Maryland.

Lockheed Martin appears to be a high-quality but no longer cheap defense asset: the company’s profitability and returns are strong, but the balance sheet and valuation call for caution. A P/E of 18.77 is below the industry median, supporting the idea of a moderate undervaluation on earnings, but a P/B of 13.40 and P/S of 1.69 are noticeably above industry benchmarks, which limits the potential for re-rating. P/FCF of 13.58 looks acceptable and better than the industry, indicating normal free cash flow generation, but it does not provide a basis for aggressive upside. Debt remains the main drawback: debt/equity of 2.34 is significantly above the median, long-term debt of about $20.5 billion remains elevated, and total liabilities are also high. Liquidity is only borderline: a current ratio of 1.19 and quick ratio of 1.01 are below industry levels, so the margin of safety in working capital is limited. At the same time, operating efficiency is strong: an operating margin of 11.88% and net profit margin of 8.16% are above the median, while ROE of 86.24%, ROA of 10.40%, and ROI of 22.60% indicate high returns on capital. The year-over-year trend is generally positive: revenue, EBITDA, operating profit, and net profit have increased, while margins and EPS have improved, confirming the business’s resilience. Shareholders’ equity is also growing, which partially offsets the debt profile, although the absolute level of liabilities remains high. Gross margin, by contrast, remains a weak point and is below the industry level, indicating limited pricing flexibility and high cost of goods sold. Dividend yield of 0.63% is low and has not increased over the year, so the dividend factor here is more supportive than a valuation driver. Overall, the fundamentals justify maintaining a cautious view: the business is high-quality and profitable, but the elevated valuation on balance-sheet and revenue multiples, together with debt and weak liquidity, restrain any upward revision of the target.

Lockheed Martin Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

LMT demonstrates strong profitability and revenue growth, but its high debt burden, weak liquidity, and expensive P/B and P/S ratios limit its valuation potential.

Key Points
GE Aerospace is a pure-play aerospace company focused on high-margin propulsion and services after splitting from old GE in 2024.
Lockheed Martin continues to dominate the defense market with massive long-term contracts like the F-35 program.
Which of these two industrial giants offers the best balance of growth and valuation for your portfolio?
Deciding between GE Aerospace (NYSE:GE) and Lockheed Martin Corp (NYSE:LMT) requires choosing between two different paths. One offers commercial aviation growth while the other provides defense stability for your portfolio. Which is the better buy?
GE Aerospace now operates as a focused aerospace leader after the old GE asplit into three companies in 2024, while Lockheed Martin serves as the world's largest defense contractor. Both companies are essential to the global aviation and defense landscape. Investors often compare them to see if commercial recovery or military spending offers better long-term prospects.
The case for GE Aerospace
GE Aerospace focuses on the design and maintenance of aircraft engines for both commercial and military use, managing a massive installed base of more than 44,000 commercial and 26,000 military engines. This expansive global footprint creates a reliable and steady stream of high-margin service revenue among industrial stocks that typically lasts for the entire lifespan of the aircraft. The company recently simplified its corporate structure through a series of spin-offs to focus exclusively on these high-growth propulsion and aviation services segments.
In FY 2025, total revenue reached nearly $46 billion, representing a robust growth rate of approximately 18.5% over the prior fiscal year. Net income for this period was roughly $8.7 billion, resulting in a net margin of about 19% that highlights the profitability of its specialized aerospace engineering. This margin figure indicates how much profit the company keeps for every dollar of sales generated after all costs are considered.
As of its December 2025 balance sheet, the debt-to-equity ratio is nearly 1.1x, a metric that compares total debt to shareholder equity to assess financial leverage. Its so-called current ratio, which gauges the ability to pay short-term obligations with cash and other liquid assets, is approximately 1.0x. Free cash flow was close to $7.3 billion, calculated as cash from operations minus capital expenditures, providing the company with capital for future innovation.
The case for Lockheed Martin
Lockheed Martin remains a dominant force in the global defense market, deriving nearly 72% of its consolidated sales from the U.S. government and its various federal agencies. Customer concentration like this adds a layer of risk to the business, as even minor shifts in federal spending or political priorities can impact major long-term projects. The F-35 Lightning II program remains its most critical and high-profile contract, representing roughly 27% of total consolidated sales for the company in 2025.
In FY 2025, revenue reached roughly $75.1 billion, representing steady growth of approximately 5.7% over the previous fiscal year as global defense needs remained high. Net income for the year was close to $5.0 billion, which indicates a net margin of about 6.7% for the defense giant. This net margin reflects the profit remaining after all operating expenses, taxes, and interest costs have been paid out of total revenue.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 3.2x, while the current ratio is approximately 1.1x, showing a stable short-term liquidity position. Free cash flow reached nearly $6.9 billion, providing the company with significant capital for shareholder returns through dividends and share buybacks. It also collaborates through joint ventures, such as the Javelin program partnership with its industry peer RTX Corp (NYSE:RTX).
Risk profile comparison
GE Aerospace faces risks related to the cyclical nature of the commercial aviation industry, as economic downturns can reduce demand for maintenance. The company also competes intensely with RTX and depends on manufacturers like Boeing Co (NYSE:BA) for timely aircraft deliveries. Any production delays from these partners can directly hurt its engine sales.
Lockheed Martin is heavily dependent on U.S. government appropriations and faces a $4.25 billion federal lawsuit filed in March 2026 alleging intellectual property misappropriation. Supply chain issues for critical components like semiconductors or rare earth minerals pose a significant risk to production. The company also competes for defense contracts against major players like Northrop Grumman Corp (NYSE:NOC) and General Dynamics Corp (NYSE:GD).
Valuation comparison
Lockheed Martin offers a much lower entry point for investors based on its Forward P/E, while GE Aerospace trades at a significant premium. This ratio compares the stock price to future earnings estimates to determine if a stock is overvalued.
Metric
General Electric
Lockheed Martin
Forward P/E
41.3x
17.0x
P/S ratio
6.7x
1.6x
The P/S ratio measures a company's market value against its sales over the past twelve months.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Lockheed Martin Corp is a core company in the middle of one of the biggest priorities in the U.S.: aerospace and defense. In particular, the F-35 fighter program remains a pillar of Lockheed's business, with the Defense Department planning to continue to buy the jet into the 2040s. Having more than a quarter of revenue essentially guaranteed for 15 years or more is unheard of and quite appealing to a long-term investor. Lockheed Martin's sales are anticipated to grow about 5% to $79.1 billion in the current fiscal year.
GE Aerospace is the market leader in aircraft engines, boasting the most installed engines on planes. The company has been focusing on increasing productivity and improving its supply chain by working closely with suppliers. These efforts have meaningfully improved the availability of components for GE Aerospace, helping it meet demand and increasing sales and margins.
Business continues to be good. Management expects growth from recent awards to produce engines for the new F-47 jet from Boeing, as well as a $1.4 billion award from the U.S. Marines. It also received commercial airline awards from United Airlines Holdings Inc. (NASDAQ:UAL), American Airlines Group Inc. (NYSE:AA), and Delta Air Lines Inc. (NYSE:DAL), totaling over $1 billion.
Revenue for the current year, fiscal 2026, is expected to grow more than 18% to $52.3 billion, though net income is likely to lag that pace, growing 5% to $9.1 billion.
Both are stalwart stocks of the American aerospace industry and a good addition to most portfolios. To choose between them, give the nod to GE Aerospace's double-digit revenue growth this year, which signals a business firing on all cylinders.
Should you buy stock in GE Aerospace right now?
Before you buy stock in GE Aerospace, consider this:
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, Lockheed Martin, and RTX. The Motley Fool recommends Delta Air Lines and Northrop Grumman. The Motley Fool has a disclosure policy.

GE Aerospace vs. Lockheed Martin: Which Industrials Stock Is a Better Buy in 2026?

Key Points
UPS shares have hit a rocky patch, but that performance just doesn’t reflect the company’s likely future.
Brookfield Renewable is neither a conventional utility nor a mutual fund. Yet, it offers the upside of both.
Lockheed Martin may not be a growth stock, but it could be particularly fruitful for income investors.
Do you get the feeling that growth opportunities are going to be fewer and farther between in the foreseeable future, while investment income is going to be prioritized in more portfolios? Maybe you're even already making such a strategic shift?
If you are (or are going to), here's a closer look at three great dividend stocks you can feel good about buying and holding for decades.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. United Parcel Service
It's been tough to stick with United Parcel Service (NYSE: UPS) of late. Shares peaked in 2022, at the same time that all the online shopping prompted by the COVID-19 pandemic did. For a short time late last year, it finally looked as if the stock might start to rebound. As last year's decision to dial back the number of low-margin deliveries it was doing for Amazon started becoming a reality this year -- at the same time fuel prices soared -- that budding recovery effort was upended. Shares recently hit a new multi-month low and seem to still be sinking.
The underlying concern may be overdone, however. While the scaled-back partnership with Amazon is taking a toll on revenue, there are already signs of the wider profit margins that CEO Carol Tomé expected. And as a reminder, while UPS voluntarily gave up some of its Amazon business, it still managed to grow its top line by a respectable 6% during the quarter ending in June. Not bad.
Perhaps the piece that's being overlooked here, though, is that there's still plenty of profitable demand for delivery and logistics for everyone, and there will only be more of it in the long term. An outlook from Coherent Market Insights suggests the worldwide parcel delivery market is on pace to grow at an average annual pace of more than 5% through 2033.
It's also worth noting that while Amazon may have led e-commerce's growth up until this point, competitors like Walmart, as well as brands themselves, are finally keeping Amazon in check. These rivals aren't using Amazon's in-house delivery network, but rather, third-party logistics services like FedEx and UPS.
Given all of this, the recent weakness that pushed UPS's forward-looking dividend yield above 7% makes for a fantastic long-term entry opportunity despite the near-term weakness.
2. Brookfield Renewable
In many ways, Brookfield Renewable (NYSE: BEPC) represents a new frontier in income investing. It's neither a stand-alone business nor a collection of handpicked publicly traded tickers with a common thread. Rather, Brookfield Renewable is a stakeholder in several privately owned and privately managed renewable energy utility businesses, including solar power farms, wind energy, and hydropower plants.
And this seemingly small detail matters in a big way. Not only does owning a piece of Brookfield Renewable give you exposure to the future of the energy business, but this flexible structure also offers direct access to opportunities that aren't investable any other way.
For instance, in June 2026, Brookfield and Mitsubishi HC Capital (OTC: MIUFY) announced the formation of a private joint venture meant to capitalize on the growing demand for renewable energy within Europe, with several long-term power purchase agreements already in place.
More than anything, ownership of utility companies remains a fantastic way to generate reliable investment income. Consumers and corporations alike do whatever it takes to keep the lights turned on. Brookfield Renewable's past and planned dividends say as much too. Not only has this stock's per-share quarterly dividend grown every year since 2021, but the company has publicly committed to long-term annual dividend growth of between 5% and 9%.
Given this organization's flexibility to buy, develop, and sell utilities assets of its choosing, that industry-beating dividend growth goal is certainly achievable. You'd be plugging into a forward-looking dividend yield of 5.5%, by the way.
3. Lockheed Martin
Last but not least, add Lockheed Martin (NYSE: LMT) to your list of monster dividend stocks to buy now and hold for decades. OK, its projected dividend yield of 2.7% may not exactly be thrilling. With 23 consecutive annual increases to its credit, though (and almost certainly more on the way), it's an income investment you can feel good about holding for the long haul.
You may know this aerospace and defense contractor best by its F-35 and F-22 fighter jets, although it's so much more. This company not only supplies the U.S. military and its allies with an enormous amount of equipment and supplies, but it's also the maker of the Orion spacecraft and several commercial and civilian aircraft. While its growth is usually modest, its diverse product portfolio means it's always got something to sell somewhere.
That being said, it's worth noting that the White House is requesting $1.5 trillion in funding for the U.S. military in fiscal 2027, up 41% from 2026's defense spending. It's only a request, and it's only for one year. But it's also a glimpse of a broader, longer-term shift toward a more militarized global environment. If worldwide defense spending remains on its current growth trajectory, the United Nations believes, global military-related outlays could reach $6.6 trillion by 2035. That's five times the amount spent during the last year of the Cold War, and twice what was shelled out in 2024.
Societal safety concerns aside, that spells opportunity for arms suppliers like Lockheed Martin, bolstered by the stock's recent pullback.
Should you buy stock in United Parcel Service right now?
Before you buy stock in United Parcel Service, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Parcel Service wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
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*Stock Advisor returns as of September 29, 2026.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Lockheed Martin, United Parcel Service, and Walmart. The Motley Fool recommends Brookfield Renewable and FedEx. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Monster Dividend Stocks to Buy Now and Hold for Decades

(RTTNews) - Tuesday, L3Harris Technologies, Inc. (LHX) announced that the company has secured an undefinitized contract from Lockheed Martin (LMT), valued at more than $6 billion, excluding escalations, over seven years to significantly expand propulsion production for the Terminal High Altitude Area Defense or THAAD system.
The company added that the contract reflects its demonstrated ability to quickly deliver critical defense technologies at the scale and speed required by the Department of War.
Under the contract, the American technology company will build a new facility to support increased THAAD Solid Rocket Boost Motor manufacturing and expand capacity for THAAD's Liquid Divert and Attitude Control production.
LHX was trading at $236.96, down 0.31 percent on the New York Stock Exchange.

L3Harris Technologies Bags $6 Bln THAAD Propulsion Expansion Contract From Lockheed Martin

RTX Corporation RTX is strengthening its position in the air-to-air missile market as demand for Advanced Medium-Range Air-to-Air Missiles (AMRAAM) continues to rise among the U.S. military and international customers. Its Raytheon business recently received a multiyear contract valued at up to $20.7 billion for the production of AMRAAM, guidance sections and related requirements.
The five-year contract, which includes two option years, covers AMRAAM production through June 2033. The award is expected to support a significant increase in production, with RTX targeting annual output of at least 1,900 missiles. The company has already invested in expanding AMRAAM production capacity and nearly doubled output in 2025 from the previous year.
International demand is another key growth driver. The contract includes Foreign Military Sales to 16 countries, including Australia, Canada, Germany, Japan, Poland, Sweden and the United Kingdom. AMRAAM is currently deployed across 44 countries and operates on 14 platforms, giving RTX a broad customer base for the missile.
The award also strengthens RTX’s long-term defense production pipeline. Rising demand for air-to-air missiles, along with efforts by the United States and its allies to expand weapons inventories, should support higher production volumes. RTX’s investments in its workforce, supply chain and manufacturing facilities are expected to help meet these requirements.
With strong U.S. and international demand, the AMRAAM program could provide RTX with sustained revenue opportunities while supporting growth in its broader missile and defense portfolio.
Defense Stocks to Keep on the Radar
Growing demand for advanced missiles and replenishment of defense inventories could also benefit other major defense contractors with established weapons portfolios.
Lockheed Martin LMT: Lockheed Martin benefits from demand for air and missile defense systems, including PAC-3 interceptors and other precision weapons. Rising U.S. and allied requirements for advanced missile defense capabilities could support continued orders across its portfolio.
Northrop Grumman NOC: Northrop Grumman supports missile programs through advanced guidance, propulsion and defense electronics. Its involvement in strategic and tactical missile programs positions the company to benefit from continued investment in precision weapons and next-generation defense technologies.
The Zacks Rundown for RTX
Shares of RTX have surged 12.1% in the past year against the industry’s 14.4% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.51X compared with its industry’s average of 2.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
RTX stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Can Rising AMRAAM Demand Support RTX's Defense Growth Outlook?

Lockheed Martin LMT continues to strengthen its position in advanced radar and air surveillance systems as the U.S. Air Force invests in capabilities designed to detect and track threats over long distances. The company recently received an $18.9 million contract modification for the Three-Dimensional Expeditionary Long-Range Radar program.
The latest award increases the cumulative face value of the contract to approximately $1.01 billion from $991.3 million. Work will be performed in Liverpool, NY, and is expected to be completed by June 2029, providing Lockheed Martin with continued program visibility.
Three-dimensional long-range radar systems are designed to provide detailed information on the location, altitude and movement of airborne objects. Such capabilities are important for strengthening air surveillance and supporting timely responses to aircraft, missiles and other potential threats.
The contract also highlights continued demand for mobile and expeditionary radar capabilities that can support military operations in different environments. As the Air Force works to improve detection and tracking capabilities against increasingly complex threats, advanced radar systems are expected to remain an important area of defense investment.
Lockheed Martin’s established expertise in radar, sensors and integrated mission systems positions it to benefit from these requirements. Continued awards and modifications under the program could provide recurring opportunities as the Air Force expands and sustains its long-range surveillance capabilities.
Defense Stocks to Keep on the Radar
Growing demand for advanced radar and air surveillance capabilities could also benefit other defense contractors with established sensor portfolios.
RTX Corporation RTX: RTX develops advanced radar and sensor technologies for air defense and surveillance applications. Its portfolio includes systems designed to detect, track and identify airborne threats across different operating environments.
Northrop Grumman NOC: Northrop Grumman provides advanced radar and sensor systems for air and missile defense. Its expertise in long-range surveillance and integrated sensing supports demand for technologies that improve threat detection and situational awareness.
The Zacks Rundown for LMT
Shares of LMT have risen 5.3% in the past year against the industry’s 14.7% decline.
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.43X compared with its industry’s average of 2.19X.
The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
LMT stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Can Long-Range Radar Demand Support Lockheed Martin's Growth?

Key Points
The Air Force plans to replace its MQ-9A Reaper drones with a cheaper recon-and-strike drone called the Massed Modular Aircraft.
MMA drones are not the same as Collaborative Combat Aircraft drones.
For one thing, MMA drones will cost half as much.
The U.S. Air Force is going all-in on drones. Recently, I covered the award of twin contracts for the production of Collaborative Combat Aircraft (CCA) by General Atomics and Anduril Industries -- a $10 billion contract for the winners. Today I'll tell you about a separate, related contract for Air Force drones. It's not quite as big, but at $5 billion in total value, it's not exactly tiny, either.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
CCA, meet MMA
By 2032, the Air Force wants to have 500 autonomous CCA strike drones in its inventory. Flying alongside them -- and oftentimes controlling them -- will be piloted F-35 stealth fighter jets built by Lockheed Martin (NYSE: LMT). The Air Force wants another set of 500 drones, however, built even more economically, to supplement the strike drones.
Dubbed "Massed Modular Aircraft," or MMA, these 500 reconnaissance-and-strike drones will also arrive in force in 2032, taking over missions currently performed by General Atomics' MQ-9A Reaper drones.
To date, the Air Force has lost about 25% of its Reaper fleet -- 45 aircraft -- in combat operations over Iran. At a reported $30 million apiece, those are some substantial losses in dollar terms. If the Air Force gets the price it's looking for from MMA drones, however -- $10 million apiece -- future losses should be easier to bear.
Who will build MMA, and when will it arrive?
Airandspaceforces.com reports that the Air Force is looking to have the first batch of 100 MMA drones flying by 2029, ramping to 500 drones by 2032 -- the same number as for CCA. It's not yet known who will build the MMA, but sources indicate that General Atomics and at least one other company, "Swarm Aero," are in the running. Airandspaceforces reports there will be "multiple" MMA models in the fleet, built by "different" contractors.
This suggests the USAF may be planning a try-before-you-buy (in bulk) approach to the MMA program, similar to what the Pentagon is running with its Drone Dominance Program, which fast-tracks the production of cheap first-person view (FPV) attack drones. If that's the case, we could see many companies win (probably unprofitable) MMA contracts for a handful of drones initially. Over time, the best models would win more and more orders, and the companies building them would become increasingly profitable as they win.
What's next for MMA?
Keep an eye on this space as we track progress on MMA contract awards and the companies winning them. Air Force Secretary Troy Meink says that so long as he can get the money from Congress, he plans to hit 500 MMAs by 2032 but then proceed to award production contracts "much higher than that" in future years.
Whoever wins these awards could be looking at a real windfall.
Should you buy stock in Lockheed Martin right now?
Before you buy stock in Lockheed Martin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lockheed Martin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 27, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lockheed Martin. The Motley Fool has a disclosure policy.

Anduril Isn't the Only Private Defense Contractor Building Advanced Air Force Drones

Key Points
Pentagon priorities are shifting toward hybrid and autonomous aircraft.
Archer's Thunder platform is designed specifically for military missions.
Archer's Boeing deal could significantly expand its defense business.
The Pentagon has spent years testing electric vertical takeoff and landing (eVTOL) aircraft, and two of the biggest beneficiaries have been Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY). But if I'm looking for the eVTOL stock with the stronger defense opportunity today, I'm going with Archer. Let me explain.
Archer's contract with the U.S. Air Force's Agility Prime program is valued at up to $142 million. The company delivered its first Midnight aircraft to the Air Force in 2024 after receiving a military airworthiness assessment from the Department of Defense. The military has been evaluating Midnight for missions including personnel transport, logistics, medical evacuation, and intelligence and surveillance.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
That said, Joby has also collected plenty of defense money. Its Air Force contract reached a potential value of $131 million, with plans to provide as many as nine aircraft. Joby has operated aircraft at Edwards Air Force Base and continues working with the Air Force on autonomous flight technology. So why give Archer the edge?
The Pentagon's priorities are changing
Joby disclosed that the Department of Defense shifted the Agility Prime program toward hybrid aircraft and autonomous flight technologies in 2025 and reduced the scope of Joby's existing contract. Joby is responding by developing autonomous capabilities and pursuing additional government contracts, including work with L3Harris.The company also agreed to acquire defense contractor Resonant Sciences for approximately $500 million. Resonant already works on active national security programs and brings expertise in areas including advanced sensing, electronic warfare, communications, autonomous systems, and low-observability aircraft technology. It also generated more than $100 million in revenue over the previous 12 months.
Once that acquisition closes, Resonant will become Joby's dedicated defense business, giving it an established defense operation that can be combined with Joby's hybrid aircraft and autonomous-flight technology.Archer, meanwhile, has already built its defense strategy around that shift.
The company partnered with defense technology company Anduril to develop a new autonomous hybrid-electric VTOL platform. In July, the companies unveiled Thunder, a Group 5 autonomous aircraft designed specifically for military missions.
Unlike Archer's all-electric Midnight air taxi, Thunder uses a hybrid-electric powertrain to provide greater range and endurance. It's also autonomous and designed to carry configurable payloads depending on the mission. Archer's defense ambitions are getting even bigger, too.
In August, Archer announced a deal to acquire Boeing's Insitu, Wisk Aero, and SkyGrid businesses. Insitu alone generates more than $200 million in annual revenue, while the three businesses would significantly expand Archer's aerospace, defense, and autonomous-flight capabilities. Of course, none of this means Archer is about to become the next Lockheed Martin.
The $142 million Air Force contract represents a maximum potential value, not guaranteed revenue, and Thunder is still a new platform that will have to prove itself. Joby shouldn't be counted out, either. Its relationship with the military goes back years, and its autonomous technology could produce additional defense contracts. But right now, Archer has the cleaner alignment with where Pentagon spending appears to be heading: autonomy, hybrid propulsion, longer range, and uncrewed military aircraft. And that gives Archer the edge in the battle for defense dollars.
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The Pentagon Is Buying eVTOLs. Here's Which Stock Wins the Defense Money.

Northrop Grumman NOC is strengthening its position in the F-35 program through continued demand for its advanced APG-85 radar. The company recently received a not-to-exceed $123.8 million contract from the U.S. Navy for long-lead materials, parts, components and related efforts, supporting the production of 67 APG-85 radars for the Air Force, Marine Corps and Navy.
The work will be performed in Linthicum Heights, MD, and is expected to be completed by February 2031. The award provides Northrop Grumman with long-term production visibility while supporting the delivery schedule of F-35 aircraft across the U.S. military services.
The APG-85 is designed to provide advanced sensing and targeting capabilities for the F-35, supporting the aircraft’s ability to detect and track threats. Continued procurement of the radar highlights the importance of advanced sensor systems as the U.S. military expands and sustains its F-35 fleet.
The contract also reflects Northrop Grumman’s established role in supplying critical mission systems for the F-35. Long-term production programs such as the APG-85 can support recurring revenue opportunities as additional aircraft are produced and existing platforms receive upgrades and sustainment.
With the F-35 remaining an important part of U.S. tactical airpower plans, continued demand for its radar and other mission-critical systems could provide a steady growth opportunity for Northrop Grumman.
Defense Stocks to Keep on the Radar
The continued expansion of advanced fighter aircraft programs could also support companies supplying critical systems and technologies.
Lockheed Martin LMT: Lockheed Martin is the F-35’s prime contractor and continues to produce the aircraft for the U.S. and international customers, supporting long-term demand across its fighter aircraft business.
RTX Corporation RTX: RTX supplies the F-35 through its Pratt & Whitney engine business and Collins Aerospace systems. Continued F-35 production and sustainment provide recurring opportunities across propulsion, avionics and other aircraft systems.
The Zacks Rundown for NOC
Shares of NOC have surged 1.8% in the past three months against the industry’s 10.3% decline.
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.57X compared with its industry’s average of 2.24X.
The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has remained the same over the past 60 days.
Image Source: Zacks Investment Research
NOC stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Rising F-35 Radar Demand Support Northrop Grumman's Growth?

Key Points
Boeing is navigating a complex operational turnaround while benefiting from a significant surge in commercial aviation demand.
Lockheed Martin maintains a highly stable business model anchored by its dominant position in the F-35 fighter jet program.
Which of these aerospace giants is the better fit for your investment portfolio in 2026?
The aerospace market is navigating a complex recovery, leaving investors to choose between a commercial giant and a defense powerhouse. Deciding between Boeing Co (NYSE:BA) and Lockheed Martin Corp (NYSE:LMT) requires a look at stability versus turnaround potential.
Boeing serves both the commercial and defense markets, though its iconic passenger jets define its public profile. Lockheed Martin focuses almost exclusively on security and high-tech defense systems. Comparing these two giants requires weighing the high-growth aspirations of commercial flight against the reliable, contract-driven nature of government defense spending.
The case for Boeing
Boeing is a global aerospace giant and a major player among defense stocks, manufacturing both commercial and military aircraft. The company serves customers in over 150 nations, with a business split across commercial airplanes, defense systems, and space technology. It relies on major commercial airlines and the U.S. government, specifically the Department of Defense and NASA, for the bulk of its revenue. Boeing also provides services to Airbus (OTC:EADSF) following its acquisition of Spirit AeroSystems. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached approximately $89.5 billion, representing a significant 35% growth compared to the previous year. This revenue jump helped the company achieve net income of approximately $2.2 billion, resulting in a net margin of 2.5%. This performance represented a significant swing from the net loss of nearly $12 billion recorded in 2024. The recovery in deliveries of commercial aircraft has been the primary driver of this improved financial performance.
As of its December 2025 balance sheet, Boeing reported a debt-to-equity ratio of 10.0x. This ratio, which measures total debt relative to shareholder equity, suggests the company relies heavily on borrowed funds. Its current ratio of 1.2x indicates Boeing has $1.20 in current assets for every $1.00 in short-term liabilities. Free cash flow, which is the cash remaining after paying for operations and capital equipment, was negative $1.9 billion. Note that stock-based compensation (SBC) represented roughly 40% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Lockheed Martin
Lockheed Martin is a dedicated security and aerospace company focused on defense technology. The company relies heavily on the U.S. government, which accounted for nearly three-quarters of its sales in FY 2025. Customer concentration like this adds a layer of risk to the business. Its F-35 program is the largest single driver of revenue, representing approximately 27% of total sales. Beyond the U.S., the company serves military and commercial operators in 40 nations, providing essential systems like the Patriot Advanced Capability-3 (PAC-3) and various space platforms.
In FY 2025, Lockheed Martin generated revenue of roughly $75.1 billion, a 6% increase over the prior year. The company reported net income just over $5 billion, which translates to a net margin of about 7%. While growth is slower than its commercial-focused peers, the company has maintained steady profitability. This stability is largely due to the long-term nature of defense contracts and the essential role the company plays in national security infrastructure.
Lockheed Martin reported a debt-to-equity ratio of 3.2x as of its December 2025 balance sheet. This ratio uses total debt to measure leverage relative to shareholder equity. Its current ratio of 1.1x measures the ability to cover short-term bills with liquid assets. The company generated roughly $6.9 billion in free cash flow, providing significant capital for dividends or reinvestment. Because stock-based compensation was well below significant thresholds, the reported cash flow reflects a clear picture of the company's actual cash generation from its core defense operations.
Risk profile comparison
Boeing faces significant risks related to production and certification delays for major programs like the 777X and various 737 models. Integration difficulties following the Spirit AeroSystems acquisition have added to program costs and liabilities. The company also remains under intense FAA scrutiny, which limits production rates and impacts the operating margin. Furthermore, Boeing has a history of significant work stoppages, including major strikes by IAM union members, which threaten production continuity. Supply chain constraints and inflationary pressures on raw materials continue to impact overall productivity.
Lockheed Martin is highly dependent on Department of Defense appropriations, making it vulnerable to shifts in government spending and potential shutdowns. The concentration of the F-35 program remains a double-edged sword, as any schedule or cost issues could materially impact the company's results. Lockheed Martin is also engaged in a $4.25 billion federal lawsuit alleging misappropriation of proprietary business models. Geopolitical trade restrictions also pose a threat to the supply of rare earth minerals required for high-tech systems. Competitors like General Dynamics (NYSE:GD), Northrop Grumman (NYSE:NOC), and RTX (NYSE:RTX) also vie for the same limited pool of government defense funding.
Valuation comparison
Lockheed Martin appears significantly cheaper on an earnings basis, while the P/S ratio, which measures market value against sales over the past twelve months, shows a much tighter race.
Forward P/E
49.7x
17.3x
P/S ratio
1.7x
1.6x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Boeing is still working to recover from safety and supply chain issues. While revenue will rise about 9% to $97.7 billion this year, the company's net income will fall dramatically to around $85 million, according to consensus Wall Street analyst forecasts, hence its high forward P/E ratio.
But don't count Boeing out. It is among the largest aerospace and defense companies, giving it excellent long-term prospects due to its leading position in the growing commercial aerospace industry. In the first quarter of its current fiscal year, the order backlog rose in the double digits, setting a new record. Backlogs mean future sales are strong and show the industry believes in the business.
Lockheed Martin Corp is a core company in the middle of one of the biggest priorities in the U.S.: aerospace and defense. In particular, the F-35 fighter program remains a pillar of Lockheed's business, with the Defense Department planning to continue to buy the jet into the 2040s. Having more than a quarter of revenue essentially guaranteed for 15 years or more is unheard of and quite appealing to a long-term investor. Lockheed Martin's sales are anticipated to grow about 5% to $79.1 billion in the current fiscal year.
How to choose between these two aerospace stocks so essential to the U.S. economy? Go with the better value stock for the long-term. That's Lockheed Martin, which offers a cheaper earnings and sales ratios than Boeing. Buying good companies at good prices is a solid strategy to profit in the long run.
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, Lockheed Martin, and RTX. The Motley Fool has a disclosure policy.

Boeing vs. Lockheed Martin: Which Essential U.S. Aerospace Stock Is a Better Buy in 2026?

Lockheed Martin LMT and L3Harris Technologies LHX are two major U.S. defense companies, but they have different business profiles and exposure across the defense industry.
Lockheed Martin is the larger and more diversified of the two, with major exposure to fighter aircraft, missiles, missile defense, helicopters, space systems and other defense platforms. Its portfolio includes programs such as the F-35, F-16, C-130J, THAAD and various space systems. L3Harris has a different portfolio emphasis, focusing more heavily on communications, electronic warfare, sensing, space systems, missile technologies and mission systems.
The companies also provide different exposure to the changing nature of warfare. LMT is more closely tied to major defense platforms and weapons systems, including advanced aircraft, missile defense and strategic systems. LHX is more concentrated in the technology layer of defense, including secure communications, electronic warfare, sensors, space-based capabilities and networking.
Let's compare the stocks' fundamentals to determine which one is better positioned at present.
Tailwinds for LMT Stock
Lockheed Martin is converting elevated demand into longer-duration awards that improve revenue visibility and support capacity planning. Backlog reached a record $230 billion as of June 28, 2026, following $65 billion in second-quarter orders and a 3.2 book-to-bill ratio. The total includes a seven-year, $35 billion contract to quadruple THAAD interceptor production, alongside new GMLRS, HIMARS, radar and space awards.
LMT’s portfolio is focused on areas benefiting from increased funding and procurement priority, including munitions, integrated air and missile defense, hypersonics, space-based interceptors and counter-drone systems. Missiles and Fire Control sales rose 19% in the second quarter of 2026 as PAC-3, THAAD and PrSM production increased, while segment profit advanced 24%. The company is also expanding facilities in Alabama and Florida and investing ahead of awards to increase production capacity.
Tailwinds for LHX Stock
L3Harris’ space sensing and missile franchises remain aligned with Golden Dome, missile defense and hypersonic tracking initiatives. Second-quarter 2026 orders totaled $7.3 billion, producing 1.2x book-to-bill and lifting backlog to a record $42 billion from $40.7 billion at the end of the first quarter of 2026. The company has secured $2.4 billion of new space contracts since fourth-quarter 2025 and sees a $9 billion pipeline across missile warning, missile defense and classified missions.
The company continues to refine its portfolio around core defense priorities while integrating prior acquisitions. In August 2026, the company completed the sale of a majority stake in its commercial space propulsion, power and electronics businesses to AE Industrial Partners for an enterprise value of $845 million. L3Harris plans to use the proceeds to invest in facilities and advanced technologies to meet growing demand. Management has also completed the implementation phase of its LHX NeXt initiative and is increasing investments in innovation and capacity, which could support operating leverage as new programs ramp up.
How Do Zacks Estimates Compare for LMT & LHX?
The Zacks Consensus Estimate for Lockheed Martin’s 2026 and 2027 earnings per share (EPS) indicates an increase of 31.7% and 8.44%, respectively. LMT’s long-term (three to five years) earnings growth rate is 15.13%.
The Zacks Consensus Estimate for L3Harris’ 2026 and 2027 EPS indicates an increase of 9.79% and 14.44%, respectively. LHX’s long-term earnings growth rate is 13.19%.
Valuation for LMT & LHX
Lockheed Martin’s shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.45X compared with L3Harris’ 1.80X.
Liquidity of LMT & LHX
Lockheed Martin and L3Harris’ current ratio is 1.19 and 1.18, respectively. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.
LMT & LHX’s Price Performance
In the past three months, shares of Lockheed Martin have increased 6.8%, while those of L3Harris have declined 16.7%.
Image Source: Zacks Investment Research
LMT or LHX: Which Is a Better Choice Now?
Lockheed Martin is converting strong defense demand into longer-term contracts, improving revenue visibility and supporting capacity expansion across key programs. Its portfolio focuses on high-priority areas such as munitions, missile defense, hypersonics, space systems and counter-drone technologies, while the company continues investing to expand production capacity. L3Harris is expanding its exposure to space sensing, missile defense and hypersonic tracking while building a growing pipeline of new defense programs. LHX is also streamlining its portfolio and redirecting resources toward advanced technologies, facilities and capacity expansion to support future program growth.
Our choice at the moment is Lockheed Martin, given its better price performance, stronger near-term earnings growth and slightly better liquidity than L3Harris. LMT carries a Zacks Rank #2 (Buy) and LHX has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Indicator	TTM Median
P/E	18.77 24.67
Price/Sales	1.69 1.41
P/B	13.40 2.39
P/FCF	13.58 18.56

Indicator	TTM Median
ROE	86.24 14.70
ROA	10.40 6.02
ROI	22.60 8.68
Net Worth	129.70 1.19
Quick Ratio	1.01 1.16
Current Ratio	1.19 1.59

Indicator	TTM Median
Net Profit Margin	8.16 7.70
Operating Margin	11.88 10.36
Gross Margin	11.80 32.70
Return on tangible equity	0.00 24.33

Indicator	TTM Median
EPS	7.94 0.80
EPS Forecast	7.22 0.67
Revenue	20.06B 187.00M
Gross Profit	2.45B —
EBITDA	2.88B —

Lockheed Martin Corporation

Recent quarterly and TTM performance

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