Lockheed Martin: Remain Overweight Following 2Q26 Results; LMT 30-Year Target T+65bp

Research evidence excerpt

Lockheed Martin: Remain Overweight Following 2Q26 Results; LMT 30-Year Target T+65bp

J P M O R G A N North America Credit Research

23 July 2026

Overweight

Lockheed Martin LMT

Remain Overweight Following 2Q26 Results; LMT 30- Moody's:S&P: A2A- Outlook:Outlook: STABLEPOS

Year Target T+65bp Fitch: A Outlook: STABLE

The above agency ratings are at the corporate level

North America Corporate Credit -

Aerospace & Defense (HY & IG) and

Industrials (HY) and Services (HY)

Yilma Abebe AC

(1-212) 270-3265

yilma.abebe@jpmorgan.com

Credit View: Lockheed Martin’s (LMT) second quarter results were ahead of Austin Maltbia

expectations with broad-based growth across each of the company’s business (1-212) 834-4684

segments. We think LMT’s key platforms are highly aligned with U.S. national austin.maltbia@jpmchase.com

security priorities, illustrated by recent contract wins, production expansion J.P. Morgan Securities LLC

agreements, and its key programs supported by the Department of War’s 2027 budget

request. We expect LMT to benefit from increased defense spending over the next

several years. Additionally, we think demand for LMT’s products in international

markets will be accretive to growth. We are reiterating our Overweight

recommendation on the Lockheed Martin credit. Our target spread for LMT

30-year risk is T+65bp.

Earnings recap: LMT reported 2Q26 sales of $20.1 billion (+11% y/y) compared to

consensus of $19.3 billion, operating profit of $2.5 billion compared to consensus of

$2.3 billion, and FCF of $2.9 billion compared to consensus of $1.4 billion. Lockheed

ended the quarter with a backlog of $230 billion compared to $186 billion at 1Q26.

Earnings Review Balance Sheet Stats

($ millions) 2Q.26 2Q.25 y/y ∆ Consensus Consensus ∆ ($ millions) 2Q.26 1Q.26