Lockheed Martin Corp. (NYSE:LMT) has seen its fundamental strength soar as the defense giant reports a massive week-on-week jump in its quality score on Benzinga Edge's Stock Rankings.
Record Backlog And Operational Efficiency
The percentile rank surged from 43.62 to 78.69, driven by record-breaking 2025 financial results and a historic $194 billion backlog that underscores robust future demand for its advanced defense platforms.
The company concluded 2025 with a 17% increase year-over-year in its backlog to approximately $194 billion. This total represents roughly 2.5 times the company’s annual sales, providing multi-year revenue certainty.
Full-year 2025 sales reached $75 billion, a 6% increase from the prior year, with every business segment contributing to the growth. This operational efficiency is a core component of the quality metric, which evaluates financial health and profitability.
Lockheed Martin also generated a solid $6.9 billion in free cash flow for the year, exceeding initial expectations even after making a significant $860 million pension contribution.
LMT maintains a stronger price trend over the short, medium, and long terms with a poor value ranking, as per Benzinga's Edge Stock Rankings.
Strategic Contracts Fuel Production Ramps
A pivotal driver for the improved outlook is a series of landmark framework agreements with the U.S. Department of War.
Lockheed recently signed a deal to quadruple the annual production of Terminal High Altitude Area Defense (THAAD) interceptors, increasing capacity from 96 to 400 units.
This follows a similar transformative agreement to triple PAC-3 Missile Segment Enhancement (MSE) production to 2,000 units annually.
To support these ramps, Lockheed is breaking ground on a new Munitions Acceleration Center in Camden, Arkansas, part of a multi-billion-dollar plan to modernize over 20 facilities across five states.
2026 Outlook And Market Performance
Lockheed Martin's 2026 guidance reinforces investor confidence, with sales projected between $77.5 billion and $80 billion.
Management anticipates segment operating profit growth of more than 25% year-over-year as combat-proven systems like the F-35 and HIMARS continue to see unprecedented global demand.
LMT Outperforms In 2026
Shares of LMT have advanced by 26.39% year-to-date, while the S&P 500 has only gained 0.87% in the same period. It was up 48.28% over the last six months and 38.48% over the year.
On Tuesday, the stock closed 1.22% lower at $628.26 per share, and it was up 0.28% in premarket on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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