TacticScaleWhat Lockheed Martin Does & How It Makes Money (LMT)
Updated October 2026 · reflects Lockheed Martin's latest reported financials
U.S. defense contractor building military aircraft, missiles, helicopters, and satellites. It earns revenue mainly from long-term government contracts to develop, produce, and sustain defense and space systems, with the U.S.
How Lockheed Martin makes money
It earns revenue mainly from long-term government contracts to develop, produce, and sustain defense and space systems, with the U.S. government as its primary customer and international sales, including foreign military sales arranged through the U.S. government, adding more.
What Lockheed Martin does
Lockheed Martin is one of the largest aerospace and defense companies in the U.S. It researches, designs, builds, integrates, and maintains advanced technology systems. It has four segments: Aeronautics, which makes combat and air mobility aircraft and unmanned air vehicles; Missiles and Fire Control, which makes air and missile defense systems, tactical missiles, precision strike weapons, and fire control systems; Rotary and Mission Systems, which makes helicopters, radar, combat systems for ships, command-and-control and cyber solutions, and simulation and training; and Space, which makes satellites, space transportation, and strategic and defensive systems. The U.S. government is its main customer, and it also sells to international customers directly or through foreign military sales arranged by the U.S. government. Because its revenue comes mostly from long government programs that cover development, production, and sustainment, the business depends on defense budgets and national security priorities. Founded in 1912, the company is based in Bethesda, Maryland.
Products & services
- Combat and air mobility aircraft
- Air and missile defense systems
- Tactical missiles and precision strike weapons
- Military and commercial helicopters
- Satellites and space transportation systems
- Radar, command-and-control and cyber solutions
What is Lockheed Martin worth?
On an owner-earnings DCF, Lockheed Martin's most-likely value is about $618 versus a recent price near $510 (21% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$337) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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