Revenue growth remains inconsistent, fluctuating between a 1.3% decline and a 13.7% increase, while gross margins have shown extreme sensitivity to contract risks, bottoming out at 3.7% in 2024Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 75.11B | 75.06B | 71.04B | 67.57B | 65.98B | 67.04B | 65.4B | 59.81B | 53.76B | 49.96B | 47.29B | 40.54B | 39.95B | 45.36B | 47.18B | 46.5B | 45.8B | 45.19B | 42.73B | 41.86B | 39.62B | 37.21B | 35.53B | 31.82B | 26.58B | 23.99B | 25.33B | 25.53B | 26.27B | 28.07B | 26.88B |
| Revenue Growth % | 4.6% | 5.65% | 5.14% | 2.41% | -1.58% | 2.52% | 9.34% | 11.25% | 7.61% | 5.65% | 16.66% | 1.48% | -11.93% | -3.87% | 1.47% | 1.52% | 1.36% | 5.75% | 2.08% | 5.66% | 6.47% | 4.75% | 11.63% | 19.74% | 10.79% | -5.29% | -0.79% | -2.8% | -6.42% | 4.44% | 17.6% |
| Cost of Goods Sold | 67.73B | 67.43B | 64.11B | 59.09B | 57.7B | 57.98B | 56.74B | 51.45B | 46.39B | 43.59B | 41.89B | 36.04B | 35.26B | 40.77B | 42.94B | 42.8B | 41.97B | 40.97B | 38.08B | 37.63B | 36.19B | 34.68B | 33.56B | 29.85B | 24.63B | 22.45B | 22.75B | 23.86B | 23.91B | 25.77B | 24.59B |
| COGS % of Revenue | - | 89.84% | 90.25% | 87.45% | 87.44% | 86.48% | 86.77% | 86.01% | 86.29% | 87.25% | 88.58% | 88.92% | 88.28% | 89.9% | 91% | 92.03% | 91.63% | 90.65% | 89.12% | 89.89% | 91.33% | 93.18% | 94.46% | 93.79% | 92.67% | 93.57% | 89.81% | 93.48% | 91.05% | 91.82% | 91.51% |
| Gross Profit | 7.37B | 7.62B | 6.93B | 8.48B | 8.29B | 9.06B | 8.65B | 8.37B | 7.37B | 6.37B | 5.4B | 4.49B | 4.68B | 4.58B | 4.24B | 3.7B | 3.84B | 4.22B | 4.65B | 4.23B | 3.43B | 2.54B | 1.97B | 1.98B | 1.95B | 1.54B | 2.58B | 1.67B | 2.35B | 2.3B | 2.28B |
| Gross Margin % | 9.82% | 10.15% | 9.75% | 12.55% | 12.56% | 13.51% | 13.23% | 13.99% | 13.71% | 12.75% | 11.42% | 11.08% | 11.72% | 10.1% | 9% | 7.97% | 8.38% | 9.35% | 10.88% | 10.11% | 8.67% | 6.82% | 5.54% | 6.21% | 7.33% | 6.43% | 10.19% | 6.52% | 8.95% | 8.18% | 8.49% |
| Gross Profit Growth % | - | 9.94% | -18.27% | 2.32% | -8.54% | 4.7% | 3.43% | 13.53% | 15.68% | 17.96% | 20.24% | -4.08% | 2.18% | 7.99% | 14.58% | -3.44% | -9.19% | -9.14% | 9.8% | 23.3% | 35.36% | 28.91% | -0.4% | 1.39% | 26.31% | -40.24% | 55.08% | -29.21% | 2.39% | 0.7% | 15.67% |
| Operating Expenses | -48M | -112M | -83M | -28M | -61M | -62M | 10M | -178M | 36M | -373M | -487M | -220M | -329M | 98M | 616M | 585M | -261M | 724M | 698M | 1.21B | 1.14B | 1.04B | 0 | 0 | 0 | 0 | 968M | 0 | 0 | 0 | 0 |
| OpEx % of Revenue | - | -0.15% | -0.12% | -0.04% | -0.09% | -0.09% | 0.02% | -0.3% | 0.07% | -0.75% | -1.03% | -0.54% | -0.82% | 0.22% | 1.31% | 1.26% | -0.57% | 1.6% | 1.63% | 2.88% | 2.87% | 2.8% | - | - | - | - | 3.82% | - | - | - | - |
| Selling, General & Admin | 99M | 50M | 137M | 499M | 865M | 1.24B | 241M | 608M | 777M | 746M | 471M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 0.07% | 0.19% | 0.74% | 1.31% | 1.85% | 0.37% | 1.02% | 1.45% | 1.49% | 1% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Research & Development | 665M | 2B | 1.6B | 1.5B | 1.7B | 1.5B | 1.3B | 1.3B | 1.3B | 1.2B | 988M | 817M | 751M | 697M | 616M | 585M | 638M | 724M | 698M | 1.21B | 1.14B | 1.04B | 962M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 2.66% | 2.25% | 2.22% | 2.58% | 2.24% | 1.99% | 2.17% | 2.42% | 2.4% | 2.09% | 2.02% | 1.88% | 1.54% | 1.31% | 1.26% | 1.39% | 1.6% | 1.63% | 2.88% | 2.87% | 2.8% | 2.71% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -2M | -2.16B | -1.82B | -2.03B | -2.63B | -2.8B | -1.53B | -2.09B | -2.04B | -2.32B | -1.95B | -1.04B | -1.08B | -599M | 0 | 0 | -899M | 0 | 0 | 0 | 0 | 0 | -962M | 0 | 0 | 0 | 968M | 0 | 0 | 0 | 0 |
| Operating Income | 7.42B | 7.73B | 7.01B | 8.51B | 8.35B | 9.12B | 8.64B | 8.54B | 7.33B | 6.74B | 5.89B | 4.71B | 5.59B | 4.5B | 4.43B | 3.98B | 4.1B | 4.47B | 5.13B | 4.53B | 3.95B | 2.99B | 2.09B | 1.98B | 1.95B | 1.54B | 1.61B | 1.67B | 2.35B | 2.3B | 2.28B |
| Operating Margin % | 9.88% | 10.3% | 9.87% | 12.59% | 12.65% | 13.61% | 13.22% | 14.29% | 13.64% | 13.5% | 12.45% | 11.62% | 14% | 9.93% | 9.4% | 8.56% | 8.94% | 9.88% | 12.01% | 10.81% | 9.98% | 8.02% | 5.88% | 6.21% | 7.33% | 6.43% | 6.37% | 6.52% | 8.95% | 8.18% | 8.49% |
| Operating Income Growth % | - | 10.24% | -17.56% | 1.9% | -8.49% | 5.54% | 1.16% | 16.51% | 8.75% | 14.54% | 24.96% | -15.74% | 24.13% | 1.6% | 11.41% | -2.86% | -8.26% | -12.96% | 13.34% | 14.52% | 32.38% | 42.94% | 5.72% | 1.39% | 26.31% | -4.4% | -3.06% | -29.21% | 2.39% | 0.7% | 77.93% |
| EBITDA | 8.71B | 8.45B | 8.57B | 9.94B | 9.75B | 10.49B | 9.93B | 9.73B | 8.49B | 7.94B | 7.1B | 5.74B | 6.59B | 5.5B | 5.42B | 4.99B | 5.15B | 5.33B | 5.98B | 5.35B | 4.72B | 3.69B | 2.75B | 2.58B | 2.51B | 2.37B | 2.58B | 2.63B | 3.36B | 3.35B | 3.48B |
| EBITDA Margin % | 11.6% | 11.25% | 12.07% | 14.71% | 14.78% | 15.64% | 15.19% | 16.27% | 15.8% | 15.89% | 15.02% | 14.16% | 16.49% | 12.11% | 11.49% | 10.73% | 11.24% | 11.78% | 13.99% | 12.77% | 11.91% | 9.92% | 7.73% | 8.12% | 9.43% | 9.86% | 10.19% | 10.32% | 12.78% | 11.93% | 12.94% |
| EBITDA Growth % | -2.78% | -1.49% | -13.73% | 1.9% | -7.01% | 5.57% | 2.05% | 14.59% | 7% | 11.77% | 23.79% | -12.88% | 19.85% | 1.35% | 8.7% | -3.13% | -3.31% | -10.89% | 11.78% | 13.33% | 27.8% | 34.46% | 6.19% | 3.11% | 5.96% | -8.37% | -1.97% | -21.54% | 0.24% | -3.71% | 57.88% |
| D&A (Non-Cash Add-back) | 1.29B | 714M | 1.56B | 1.43B | 1.4B | 1.36B | 1.29B | 1.19B | 1.16B | 1.2B | 1.22B | 1.03B | 994M | 990M | 988M | 1.01B | 1.05B | 859M | 845M | 819M | 764M | 705M | 656M | 609M | 558M | 823M | 968M | 969M | 1B | 1.05B | 1.2B |
| EBIT | 6.8B | 7.04B | 7.26B | 9.01B | 7.3B | 8.12B | 8.83B | 7.89B | 6.51B | 5.9B | 5.42B | 4.74B | 5.02B | 4.5B | 4.46B | 3.98B | 4.12B | 4.49B | 4.96B | 4.72B | 3.95B | 2.99B | 2.09B | 2.02B | 1.16B | 833M | 1.25B | 1.67B | 2.52B | 2.78B | 2.73B |
| Net Interest Income | -1.12B | -1.12B | -1.04B | -916M | -623M | -569M | -591M | -653M | -668M | -651M | -663M | -443M | -340M | -350M | -383M | -354M | -345M | -308M | -332M | -352M | -361M | -370M | -425M | -487M | -581M | -700M | -919M | -809M | -861M | -842M | -700M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.12B | 1.12B | 1.04B | 916M | 623M | 569M | 591M | 653M | 668M | 651M | 663M | 443M | 340M | 350M | 383M | 354M | 345M | 305M | 341M | 352M | 361M | 370M | 425M | 487M | 581M | 700M | 919M | 809M | 861M | 842M | 700M |
| Other Income/Expense | -1.76B | -1.81B | -793M | -409M | -1.67B | -1.57B | -409M | -1.3B | -1.5B | -1.5B | -1.13B | -413M | -334M | -350M | -362M | -349M | -271M | -83M | -423M | -159M | 158M | -370M | -425M | -444M | -1.37B | -1.41B | -1.33B | -465M | -691M | -360M | -248M |
| Pretax Income | 5.66B | 5.92B | 6.22B | 8.1B | 6.68B | 7.55B | 8.23B | 7.24B | 5.84B | 5.27B | 4.89B | 5.02B | 5.26B | 4.16B | 4.07B | 3.63B | 3.83B | 4.28B | 4.7B | 4.37B | 3.59B | 2.62B | 1.66B | 1.53B | 577M | 188M | 286M | 1.2B | 1.66B | 1.94B | 2.03B |
| Pretax Margin % | 7.54% | 7.89% | 8.76% | 11.98% | 10.12% | 11.26% | 12.59% | 12.11% | 10.86% | 10.55% | 10.33% | 12.39% | 13.16% | 9.16% | 8.63% | 7.81% | 8.35% | 9.48% | 11% | 10.43% | 9.07% | 7.03% | 4.68% | 4.81% | 2.17% | 0.78% | 1.13% | 4.7% | 6.32% | 6.9% | 7.56% |
| Income Tax | 867M | 905M | 884M | 1.18B | 948M | 1.24B | 1.35B | 1.01B | 792M | 3.34B | 1.13B | 1.42B | 1.64B | 1.21B | 1.33B | 964M | 1.18B | 1.26B | 1.49B | 1.33B | 1.06B | 791M | 398M | 479M | 44M | 109M | 710M | 463M | 660M | 637M | 686M |
| Effective Tax Rate % | 15.32% | 15.28% | 14.21% | 14.55% | 14.19% | 16.36% | 16.36% | 13.96% | 13.57% | 63.39% | 23.19% | 28.23% | 31.27% | 29% | 32.59% | 26.55% | 30.87% | 29.41% | 31.58% | 30.56% | 29.59% | 30.24% | 23.92% | 31.27% | 7.63% | 57.98% | 248.25% | 38.58% | 39.74% | 32.89% | 33.74% |
| Net Income | 4.79B | 5.02B | 5.34B | 6.92B | 5.73B | 6.32B | 6.83B | 6.23B | 5.05B | 2B | 5.3B | 3.6B | 3.61B | 2.98B | 2.75B | 2.65B | 2.93B | 3.02B | 3.22B | 3.03B | 2.53B | 1.82B | 1.27B | 1.05B | 500M | -1.05B | -519M | 382M | 1B | 1.3B | 1.35B |
| Net Margin % | 6.38% | 6.68% | 7.51% | 10.24% | 8.69% | 9.42% | 10.45% | 10.42% | 9.39% | 4.01% | 11.21% | 8.89% | 9.05% | 6.57% | 5.82% | 5.71% | 6.39% | 6.69% | 7.53% | 7.25% | 6.38% | 4.9% | 3.56% | 3.31% | 1.88% | -4.36% | -2.05% | 1.5% | 3.81% | 4.63% | 5.01% |
| Net Income Growth % | -12.9% | -5.98% | -22.89% | 20.73% | -9.23% | -7.58% | 9.68% | 23.46% | 152.05% | -62.24% | 47.07% | -0.25% | 21.23% | 8.6% | 3.39% | -9.26% | -3.24% | -6% | 6.07% | 19.93% | 38.58% | 44.15% | 20.23% | 110.6% | 147.8% | -101.54% | -235.86% | -61.84% | -23% | -3.49% | 97.51% |
| Net Income (Continuing) | 4.79B | 5.02B | 5.34B | 6.92B | 5.73B | 6.32B | 6.89B | 6.23B | 5.05B | 1.89B | 3.75B | 3.13B | 3.61B | 2.95B | 2.75B | 2.67B | 2.65B | 3B | 3.17B | 3.03B | 2.53B | 1.82B | 1.27B | 1.05B | 533M | 43M | -382M | 737M | 1B | 1.3B | 1.35B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -55M | 0 | 0 | 73M | 0 | 479M | 0 | 31M | 0 | 0 | 0 | 25M | 50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 23M | 44M | 55M | 74M | 95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 20.74 | 21.49 | 22.31 | 27.55 | 21.66 | 22.77 | 24.30 | 21.95 | 17.59 | 6.89 | 17.49 | 11.46 | 11.21 | 9.13 | 8.36 | 7.81 | 7.94 | 7.78 | 7.86 | 7.10 | 5.80 | 4.09 | 2.83 | 2.34 | 1.11 | -2.42 | -1.29 | 0.99 | 2.63 | 3.51 | 3.04 |
| EPS Growth % | -10.8% | -3.68% | -19.02% | 27.19% | -4.87% | -6.3% | 10.71% | 24.79% | 155.3% | -60.61% | 52.62% | 2.23% | 22.78% | 9.21% | 7.04% | -1.64% | 2.06% | -1.02% | 10.7% | 22.41% | 41.81% | 44.52% | 20.94% | 110.81% | 145.87% | -87.6% | -230.3% | -62.36% | -25.07% | 15.46% | 97.4% |
| EPS (Basic) | - | 21.56 | 22.39 | 27.65 | 21.74 | 22.85 | 24.40 | 22.09 | 17.74 | 6.96 | 17.71 | 11.62 | 11.41 | 9.29 | 8.48 | 7.90 | 8.03 | 7.86 | 8.05 | 7.29 | 5.91 | 4.14 | 2.86 | 2.36 | 1.12 | -2.45 | -1.29 | 1.00 | 2.66 | 3.51 | 3.56 |
| Diluted Shares Outstanding | 231.1M | 231.9M | 239.2M | 251.2M | 264.6M | 277.4M | 281.2M | 283.8M | 286.8M | 290.6M | 303.1M | 314.7M | 322.4M | 326.5M | 328.4M | 339.9M | 368.3M | 388.9M | 409.4M | 427.1M | 436.4M | 445.7M | 447.1M | 450M | 452M | 432.5M | 402.33M | 385.86M | 381.1M | 370.6M | 442.6M |
| Basic Shares Outstanding | 229.9M | 230.9M | 238.3M | 250.3M | 263.7M | 276.4M | 280M | 282M | 284.5M | 287.8M | 299.3M | 310.3M | 316.8M | 320.9M | 323.7M | 335.9M | 364.2M | 384.8M | 399.7M | 416M | 428.1M | 440.3M | 443.1M | 446.5M | 445.1M | 427.4M | 400.8M | 382M | 376.5M | 370.6M | 378.9M |
| Dividend Payout Ratio | - | 62.41% | 57.33% | 44.16% | 52.62% | 46.56% | 40.45% | 41.03% | 46.51% | 108.04% | 38.63% | 53.59% | 48.7% | 51.66% | 49.25% | 41.24% | 33.12% | 30.03% | 22.91% | 20.28% | 21.27% | 25.32% | 31.99% | 24.79% | 39.8% | - | - | 90.31% | 30.97% | 23% | 22.42% |
Contractual Margin Erosion
According to the provided quarterly income statements, LMT's revenue growth has remained largely stagnant, fluctuating between a 1.3% decline and a 13.7% increase, suggesting that the company is struggling to achieve consistent top-line expansion despite the ongoing demand for defense hardware and global geopolitical instability.
The inconsistent revenue trajectory appears to reflect the lumpy nature of government contract milestones and potential delivery bottlenecks in key programs like the F-35. Investors should monitor whether the company can transition from these sporadic growth phases to a more predictable, sustained revenue cadence as it navigates complex supply chain constraints.
As reported in financial statements, Lockheed Martin's gross margins have experienced significant volatility, dropping to as low as 3.7% in 2024Q4 and 4.0% in 2025Q2, which indicates a high sensitivity to cost overruns and the inherent risks associated with fixed-price defense contracting models.
The sharp margin contractions observed in specific quarters suggest that the company's profitability is highly susceptible to inflationary pressures and operational inefficiencies that cannot be easily passed on to the customer. This volatility warrants further investigation into whether these margin dips are temporary accounting adjustments or indicative of a more permanent erosion in pricing power.
Based on LMT's reported figures, EPS has shown extreme variance, ranging from a low of $1.46 in 2025Q2 to a high of $7.58 in 2023Q4, suggesting that net income is heavily influenced by non-operating items and periodic adjustments rather than consistent operational performance.
The wide swings in quarterly EPS appear to be driven by the company's reliance on percentage-of-completion accounting, which can lead to significant catch-up adjustments. Analysts should be cautious in extrapolating short-term earnings trends, as the underlying quality of these profits may be obscured by the timing of contract milestone recognition.
Data from recent filings suggests that LMT's reliance on fixed-price contracts creates a structural risk, as evidenced by the sharp margin compression in 2024Q4 and 2025Q2, which may indicate that the company is struggling to manage rising input costs within its existing long-term government commitments.
Short-sellers might focus on the company's inability to maintain consistent double-digit gross margins, viewing the recent dips as a sign of deeper operational fragility. If the company cannot effectively hedge against supply chain inflation, the current margin profile may remain under pressure, challenging the narrative of a stable, cash-generative defense prime.
Quick answers to the most common questions about buying LMT stock.
For fiscal year 2025, Lockheed Martin Corporation (LMT) reported total revenue of $75.06B. This represents a 179.3% increase compared to $26.88B in 1996.
Lockheed Martin Corporation (LMT) is profitable, generating $5.02B in net income for the fiscal year ending 2025 with a net profit margin of 6.7%.
Lockheed Martin Corporation (LMT) reported an operating income of $7.73B, resulting in an operating profit margin of 10.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Lockheed Martin Corporation (LMT) generated $7.62B in gross profit for the year, representing a gross profit margin of 10.2%. This demonstrates the company's core pricing power and production efficiency.