Aureus
BGood

Lockheed Martin Corporation(LMT)

B

Financial data as of Dec 31, 2025Improving · 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+100.0%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 0.98)
→
FinalB

Analysis Summary

Strengths

  • Excellent cash conversion (171%)
  • Strong YoY FCF growth (+100.0%)

Concerns

  • Low FCF margin (8.8%)
  • Net debt position ($17.6B) — 3.3x FCF, manageable
  • Only 3 positive FCF quarters recently
  • 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

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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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+100.0%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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