Lockheed Martin Corp "Topline acceleration underway, cash flow starting to..."

Research evidence excerpt

Lockheed Martin Corp "Topline acceleration underway, cash flow starting to..."

Global Research

24 July 2026ab

Lockheed Martin Corp Equities

AmericasTopline acceleration underway, cash flow

starting to follow Aerospace

12-month rating Neutral

12m price target US$581.00LMT and others in Defense will have to prove topline conversion

Prior : US$538.00

Revenue growth is building momentum - and we think still in early days - as strong

demand combines with actions to unlock supply chain capacity. Growth is led by Missiles Price (23 Jul 2026) US$568.59

& Fire Control, but looking healthy in other areas as well with a 3.2X book to bill in the RIC: LMT.N BBG: LMT US

quarter lifting backlog 38% yoy to a new record $230bn (2.8X revenue). LMT beat and

raised on topline, with some dropthrough to segment EBIT, with a sizable cash flow raise Trading data and key metrics

but driven by non-core factors (more on this below). Sentiment on Defense has been 52-wk range US$676.70-418.68

generally bearish with the two concerns we hear most frequently being 1) budget/ Market cap. US$131b

politics and 2) earnings/cash conversion. On the first, it may take getting past the Shares o/s 231m (COM)

midterms and seeing some true bipartisan support for national security. On the second, Free float 100%

it will take a track record of no charges and revenue dropping through to earnings/cash, Avg. daily volume ('000) 390

a dynamic that held back LMT and peers in the early/mid 2020s. We see a path to Avg. daily value (m) US$202

successful outcomes on both, and we are raising our FCF estimates, though Common s/h equity (12/26E) US$11.1b

LMT continues to face a few idiosyncratic FCF headwinds that limit growth until 2029, P/BV (12/26E) 11.9x

and budget uncertainty remains. We remain Neutral.