Lockheed Martin Scores a $15.5 Billion Bonanza for New F-35s. Is the Stock a Buy for 2025?

Core Viewpoint - The investment potential in Lockheed Martin stock is significantly influenced by the sales performance of its F-35 fighter jets, which are projected to have a total lifetime value of $1 trillion [1] Group 1: Recent Contracts and Revenue Impact - Lockheed Martin received a major contract on December 20 for 145 F-35 jets valued at $11.8 billion, with deliveries scheduled by June 2027, translating to approximately $4.7 billion in annual revenue [2] - Additional contracts awarded on December 23 totaled $3.7 billion, covering logistics support and engineering services for the F-35, contributing to a total of $15.5 billion in new revenue [3][4] - The $8.4 billion expected in 2025 from these contracts represents 30% of the Aeronautics division's revenue in 2023 and 12.4% of Lockheed Martin's total revenue for that year [5] Group 2: Growth Projections and Market Sentiment - The front-loaded nature of the revenue means that while 2025 will see a significant increase, growth in 2026 and 2027 will be smaller, yet still indicating nearly 7% growth over 2023 revenue, which is double the current analyst forecasts [6] - The stock is currently priced at 17 times trailing earnings, and a growth rate of mid-double-digits is necessary for it to be considered a good investment opportunity [9] - If Lockheed can achieve earnings growth in the 12% range, combined with a 2.7% dividend yield, the stock may become more attractive to investors [10]