Lockheed Martin Q3 FY12/24 Earnings Review

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Stalled Out, For Now

Lockheed Martin ($LMT) has been on a tear lately. The threat of the Middle East blowing up whilst there is an ongoing land war in Europe will do that to defense stocks. Whilst the stock price has been running hot, the fundamentals have been decidedly lukewarm. There was a modest improvement this quarter, with backlog at record highs of $165bn, up 6% on a year ago. Revenue growth slowed, EBITDA and cashflow margins fell somewhat, but the company closed the quarter with an improved balance sheet, now carrying net debt equivalent to something like 1.55x TTM EBITDA (down from 1.63x a quarter ago).

The stock promptly cooled off on the print today. Let’s take a look at the fundamentals in detail, plus valuation analysis, the stock chart and our rating.