Lockheed Martin Corporation (LMT) Stock Analysis

Lockheed Martin’s primary competitive advantages stem from its scale, technical depth, and entrenched position as the leading U.S. defense contractor. The company’s $179 billion backlog (Q3 2025) provides multi-year revenue visibility, outpacing peers such as Northrop Grumman and General Dynamics. Its portfolio is anchored by the F-35 program, which alone accounts for 26% of consolidated sales and is unmatched globally in terms of production volume and international adoption.

Lockheed’s broad capabilities—spanning aeronautics, missiles, rotary systems, and space—enable it to act as a high-end systems integrator, a role few rivals can match. This breadth supports cross-domain solutions and positions the company as a preferred partner for complex, multi-theater defense initiatives.

The company’s deep customer relationships, especially with the U.S. Department of Defense (73% of 2024 sales), create high switching costs and regulatory barriers for competitors. Its intellectual property portfolio and mission-specific software libraries further reinforce its technical moat.

Compared to Boeing, which faces commercial aviation cyclicality, and Raytheon, which is more exposed to commercial aerospace, Lockheed’s focus on defense and classified programs provides resilience. However, the company is exposed to risks from fixed-price contracts, supply chain disruptions, and government budget volatility. Nonetheless, its scale, technical expertise, and customer integration remain durable differentiators.