Analysis for LMT

📈 Growth & Financial Trajectory

Over the 8 quarters, revenues rose from $17.195B in 2024Q1 to $18.021B in 2026Q1, a cumulative gain of about $0.826B (~4.8%). Net income declined from $1.641B to $1.488B over the period, with a mid-2025 dip and a late rebound in 2026Q1; a notable spike occurred in 2025Q4 when revenue reached $20.32B, signaling a cyclical lift in demand. The gross profit trended around the low single digits of dollars, yielding margins in the low double digits.

💰 Margins & Cash Flow

Gross margin sits in the low teens (roughly 11-13%), with operating margin around the 11-12% range across quarters. This indicates steady operating leverage despite some quarterly variability. Cash flow from operating activities was generally positive across quarters, contributing to solid liquidity even as some quarters showed elevated financing outflows.

🛡️ Balance Sheet & Liquidity

Total assets run in the mid‑to‑upper $50B–$60B range, with liabilities generally in the $48B–$58B band and equity around $6–8B. Current assets exceed current liabilities modestly, giving a rough current ratio of about 1.1–1.3, suggesting resilience under short‑term stress. Long‑term debt sits around $21–22B in later quarters, signaling leverage that is manageable for a defense contractor but remains a point of sensitivity.

⚠️ Key Drivers & Risks

• Drivers: Defense budget cycles, large government contracts, and program diversity
• Risks: Revenue cyclicality and valuation sensitivity to government spending and geopolitical developments