Aureus
DWarning

Lockheed Martin Corporation(LMT)

D

Financial data as of Dec 31, 2025Declining · Industrials

FCF Margin8.8%Free Cash Flow / Revenue
Cash Conversion170.6%Operating CF / Net Income
Free Cash Flow$6.9B
Revenue$75.0B
Net Cash-$17.6BNet debt position
Debt / FCF3.3xElevated debt burden
Current Ratio1.09Adequate short-term liquidity
YoY FCF Growth-141.8%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-1Significant YoY FCF decline (-141.8%)
→
-0.5Highly volatile FCF (consistency: 1.19)
→
FinalD

Analysis Summary

Strengths

  • Excellent cash conversion (171%)

Concerns

  • Low FCF margin (8.8%)
  • Net debt position ($17.6B) — 3.3x FCF, manageable
  • Only 3 positive FCF quarters recently
  • Significant YoY FCF decline (-141.8%)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.8%
Net Margin6.7%
Operating CF Margin11.4%
CapEx Ratio2.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$17.6BNet debt position
Debt / FCF3.3xElevated debt burden
Current Ratio1.09Adequate liquidity
Debt / Equity3.23High leverage

Quarterly FCF Trend

-141.8% YoYDeclining (-141.8%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameLockheed Martin Corporation
SectorIndustrials
Free Cash Flow$6.9B
Revenue$75.0B
Net Income$5.0B
Operating Cash Flow$8.6B
Capital Expenditure$1.6B
FCF Margin8.8%
Cash Conversion Rate170.6%
Net Margin6.7%
Total Debt$21.7B
Total Cash$4.1B
Net Cash-$17.6B
Current Ratio1.09
Debt / Equity3.23
Debt / FCF3.3x
YoY FCF Growth-141.8%
Positive Quarters3 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeD
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Industrials: 13 A-Grades and Four Failures

Two-thirds of industrials earn A-grades while Boeing, FedEx, and 3M bleed cash. The sector split tells you everything.

Apr 20, 2026
VRSKUNPUBERNSC+12
Sector Report4 min read

Industrials: 14 A-Grades and Five Failures

Half the sector earns A-grades while Boeing burns cash. The spread tells you everything about where quality lives.

Mar 20, 2026
VRSKUNPUBERNSC+11
Sector Report4 min read

Industrials: 12 A-Grades Hiding a Debt Problem

The industrials sector looks healthy on the surface — 12 A-grades, 62% of companies improving — but the 6.5x average debt-to-FCF ratio tells a different story. When airlines and legacy manufacturers burn through cash, the sector's balance sheet fragility shows.

Feb 13, 2026
VRSKUNPCSXNSC+10