The company is making substantial investments in capital and R&D to support transformative innovation and increased production capacity, particularly for F-35 fighter jets and PAC-3 MSE interceptors. Growing focus on homeland defense initiatives such as "Golden Dome," missile warning networks, and increased munitions spending suggests future secular increases in U.S. defense budgets and multi-year, high-value contract awards.
Cyborg Score Rationale
Lockheed Martin finished 2025 with a record high backlog of $194 billion. Year-over-year reported segment operating profit growth is expected to be more than 25% in 2026, with free cash flow anticipated between $6.5 billion to $6.8 billion. Strong fundamentals, exceptional cash generation, and unprecedented demand position the company for sustained growth.
Top Insights
Record $194 billion backlog provides multi-year revenue visibility and growth foundation.
Delivered 191 F-35s in 2025, surpassing previous delivery record of 142 jets.
PAC-3 MSE agreement will increase annual production capacity from approximately 600 to 2,000 per year.
Capital and independent research and development investment expected to approach $5 billion in 2026, up 35% year-over-year.
Named Competitors
Defense Systems — Integrated combat systems and defense electronics
Defense Technology — Missiles, radars, and defense systems
L3Harris Technologies — Space, intelligence and autonomous systems
Boeing Defense — Military aircraft and defense platforms
Recent Developments
(February 2026) Awarded $328.5 million Foreign Military Sales contract for IRST21 Legion-ES sensor production
(January 2026) Successfully delivered 350th MH-60R helicopter to U.S. Navy
(January 2026) Completed landmark seven-year PAC-3 MSE interceptor framework agreement with Department of War
(January 2026) Record delivery of 191 F-35 fighter jets in 2025
Open the full interactive Lockheed Martin Corporation report
30-page strategic research, 15-min analyst-debate audio briefing, full Cyborg Score breakdown across 11 dimensions.