Core Viewpoint - Lockheed Martin stands out as a strong investment opportunity in the defense sector, particularly for passive income, due to its robust order backlog, reliable cash flows, and consistent capital return program [2][14][15] Group 1: Financial Performance and Outlook - Lockheed Martin reaffirmed its full-year 2025 adjusted revenue growth at a midpoint of 4.3%, with a 9.4% increase in free cash flow (FCF), and a 3% decrease in diluted earnings per share (EPS) [6][7] - The company reported a $173 billion order backlog, which is more than double its annual sales, with the F-35 backlog alone valued at approximately $33.2 billion [4][5] Group 2: Capital Return Program - Lockheed Martin has a strong capital return program, planning to return $18 billion to shareholders through dividends and stock buybacks by 2027, with $1.5 billion returned in the recent quarter [9][10] - The recent quarter's capital return included $796 million in dividends and $750 million in buybacks, resulting in a dividend yield of 2.9% [10][11] - The capital return program is fully funded by FCF, with guidance for 2025 FCF between $6.6 billion and $6.8 billion, ensuring no reliance on debt [11][12] Group 3: Investment Appeal - Lockheed Martin has raised its dividend for 22 consecutive years, showcasing a reliable track record for dividend growth [12] - The company has reduced its share count by 24.2% over the last decade, allowing for faster EPS growth compared to net income, which helps maintain an inexpensive price-to-earnings (P/E) ratio of 17.1 based on 2025 guidance [13] - Lockheed's business model is insulated from economic cycles and tariffs, making it an ideal stock for risk-averse investors [14][15]

Core Insights - The recent passing of a continuing resolution (CR) by Congress highlights evolving priorities and potential investment opportunities, particularly in defense spending [1][2] Defense Industry - Defense spending is a key area of focus, with an additional $9 billion secured for the Department of Defense (DoD) through the latest CR, emphasizing modernization and new technologies [2] - Lockheed Martin is identified as a leading defense stock, currently priced at $476.44, with a 12-month price forecast of $544.79, indicating a 14.35% upside potential [4] - Northrop Grumman, with a current price of $480.81, has a 12-month price forecast of $545.31, reflecting a 13.42% upside, supported by a record backlog exceeding $94 billion [8][9] - Axon Enterprise, a provider of technology solutions for law enforcement, has a current price of $596.91 and a 12-month price forecast of $626.45, showing a 4.95% upside [10] Company Performance - Lockheed Martin's stock is down over 15% from its October 2024 highs despite a record revenue year in 2024 and solid momentum in 2025 [4][5] - Northrop Grumman's revenue topped $41 billion in 2024, and the company was awarded over $50 billion in new contracts, contributing to long-term stability [8][9] - Axon Enterprise has seen a significant price increase of over 95% in the last 12 months, indicating strong growth potential despite being considered pricey by traditional valuation measures [11]

Investors didn't rush to buy Lockheed Martin stock this week. They might want to reconsider.Lockheed Martin (LMT 2.39%) reported earnings on Tuesday, and the crowd went mild.Seriously. Rarely has an earnings beat the size of the one Lockheed reported this week been met with such a gigantic collective shrug of dismissal as this one. Heading into earnings day, Wall Street analysts confidently predicted Lockheed would report a $6.31-per-share profit on $17.8 billion in sales. Instead, Lockheed reported $18 bil ...

Defense stocks are pulling back following Q1 reports from Lockheed Martin NYSE: LMT, Northrop Grumman NYSE: NOC, and RTX NYSE: RTX. The primary cause is uncertainty, followed by tepid guidance. Regarding uncertainty, companies face an unknown impact from tariffs that could affect their profitability. That is a risk that can’t be ignored. Each company reaffirmed its 2025 outlook, calling for growth and enough cash flow to maintain financial strength, reinvest in operations, and return capital to shareholders ...

We previously published an article on Lockheed Martin Corporation ( LMT ) in October 2021 when we observed that the share price reflected an unduly pessimistic view of their growth prospects. Our modelI am a CFA charterholder and a CIPM certificant. Professionally, I assist firms comply with the Global Investment Performance Standards (GIPS). The GIPS Standards has to do with how investment performance is calculated and presented by asset managers, pension funds, endowments and foundations. Previous to my c ...

Industry leaders look to the future with multi-year deal STRATFORD, Conn. and HOUSTON, April 24, 2025 /PRNewswire/ -- Sikorsky, a Lockheed Martin company (NYSE: LMT), and Bristow Group Inc. (NYSE: VTOL), the global leader in innovative and sustainable vertical flight solutions, today announced a long-term agreement to provide enhanced support for Bristow's S-92® helicopter fleet. Sikorsky, a Lockheed Martin company, and Bristow Group Inc. announced a long-term agreement to support Bristow's S-92® helicop ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Lockheed Martin (NYSE: LMT ) stock has lost some of its momentum. Last year, the company had been coping with delivery issues on the F-35 program and saw a flurry of charges in Q4Dhierin runs the investing group The Aerospace Forum , whose goal is ...

Lockheed Martin Corp. (LMT) delivered a robust performance in the first quarter of 2025, underscoring its resilience in the defense sector. The company reported earnings per share of $7.28, which beat the Zacks Consensus Estimate by 14.8%. Revenues grew 4.5% year over year to $17.96 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)This growth was primarily driven by sustained demand for its defense products, including missile systems and F-35 fighter jets. Segment-wise, all ...

Core Viewpoint - The stock market experienced an overcorrection due to tariff-induced fears, leading to a sell-off of fundamentally sound stocks that present deep value opportunities for investors as concerns subside [1][2]. Group 1: Snap-on - Snap-on reported mixed Q1 results but maintains a resilient business outlook, with expectations for stability in 2025 [2][4]. - The company has an attractive capital return strategy, with a dividend yield of 2.77% and share buybacks that enhance shareholder value [4]. - Balance sheet highlights include increased cash, inventory, and assets, with equity rising over 2% and low leverage [4]. Group 2: Whirlpool - Whirlpool's Q1 results showed a significant contraction in revenue and earnings, attributed to divestitures and repositioning efforts to capture the U.S. housing market recovery [5][6]. - The company is well insulated from tariff threats, with 80% of goods manufactured in the U.S., and its dividend yield stands at 9% [6]. - Q1 balance sheet highlights include reduced debt and a 13% increase in equity, indicating financial stability [6]. Group 3: Verizon - Verizon is not experiencing rapid growth but is leading the industry in size and scope, reaffirming its guidance for expanding free cash flow [9][10]. - The company has improved its free cash flow through debt reduction and strengthening its balance sheet, with a dividend payout expected to grow at a low single-digit pace [10]. Group 4: Cintas - Cintas' stock price pullback is linked to several factors, but the business remains strong with expected capital returns continuing [14][15]. - The company benefits from healthy labor markets, which support its growth trajectory [15]. Group 5: Lockheed Martin - Lockheed Martin's stock price decline is primarily due to the loss of a critical contract, but fundamentals remain strong with solid Q1 results and a robust outlook for U.S. government defense spending [18][19]. - The dividend yield is 2.85%, and share buybacks have reduced the share count by 2.6% year-over-year in Q1 [19].

Financial Performance - First quarter sales reached $18 billion[8], reflecting a 4% increase[5] - Segment operating profit was $21 billion[8], with a margin of 116%[8] - Earnings per share (EPS) amounted to $728[8] - Free cash flow delivered was $1 billion[8] - The company spent $08 billion on share repurchases and $08 billion on dividends[8] - Independent Research & Development and Capital Expenditures totaled $09 billion[8] Segment Results - Aeronautics sales increased by 3% to $7057 million[11, 12], with operating profit up 6% to $720 million[13, 15] - Missiles & Fire Control (MFC) saw a 13% sales increase to $3373 million[18, 19], and a 50% rise in operating profit to $465 million[22] - Rotary & Mission Systems (RMS) experienced a 6% sales growth to $4328 million[25, 27], with operating profit increasing by 21% to $521 million[28] - Space sales decreased by 2% to $3205 million[31, 32], but operating profit increased by 17% to $379 million[32] 2025 Outlook - The company reaffirmed its full-year guidance, projecting sales between $73750 million and $74750 million[34, 35] - Segment operating profit is expected to be between $81 billion and $82 billion[34] - Diluted EPS is projected to be between $2700 and $2730[34] - Free cash flow is anticipated to be between $66 billion and $68 billion[34] - Share repurchases are planned at approximately $3 billion[34]