Lockheed Martin Corporation (LMT): A Bull Case Theory

3 months ago 22

Ricardo Pillai

Mon, Apr 28, 2025, 9:34 AM 3 min read

We came crossed a bullish thesis on Lockheed Martin Corporation (LMT) connected Substack by Steve Wagner. In this article, we volition summarize the bulls’ thesis connected LMT. Lockheed Martin Corporation (LMT)'s stock was trading astatine $466.81 arsenic of April 24^th. LMT’s trailing and guardant P/E were 20.12 and 17.15 respectively according to Yahoo Finance.

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Lockheed Martin (LMT) delivered an awesome first-quarter 2025 performance, reinforcing its estimation arsenic a reliable and well-managed defence compounder. Revenues grew 4% year-over-year to $18 billion, portion nett net climbed to $1.7 billion, translating to an EPS of $7.28 compared to $6.39 successful Q1 2024. All 4 of the company’s concern segments saw improved operating margins, with Missiles & Fire Control notably expanding its borderline from 10.4% to 13.8%, helping thrust a 19% boost successful conception operating profit. Free currency travel stood astatine a beardown $955 million, and Lockheed’s bid backlog remained astatine a formidable ~$173 billion—equivalent to much than 2 years of revenue—underscoring the resilience of its semipermanent request pipeline.

Alongside earnings, Lockheed reaffirmed its full-year 2025 guidance, expecting ~$74 cardinal successful income and $27 successful EPS, demonstrating management’s assurance successful navigating what it described arsenic a "highly dynamic geopolitical and method environment." Recent declaration wins supply factual enactment for that optimism, with the institution securing large caller awards crossed its rocket systems portfolio—including Precision Strike, THAAD, and JASSM/LRASM programs—as good arsenic a important Trident II award. These contracts, totaling up to $10 cardinal successful imaginable aboriginal revenue, adhd further spot to the already robust backlog and heighten visibility into semipermanent growth.

In a determination that underscores its committedness to maintaining technological leadership, Lockheed besides announced the acquisition of Amentum’s Rapid Solutions business. This bolt-on acquisition expands Lockheed’s capabilities successful intelligence, surveillance, and reconnaissance (ISR), precocious communications, and tactical systems—particularly done assets similar electronically steered array technologies. Though not transformational successful size, the acquisition is strategically sound, providing Lockheed with niche method capabilities that align good with its broader defence exertion portfolio. The integration of Rapid Solutions into the Space conception volition deepen Lockheed’s ISR expertise and further enactment its ngo to present next-generation solutions for high-priority defence applications.