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    Is Lockheed Martin’s New NGI Plant Quietly Redefining Its Defense Tech Edge And Margins (LMT)?

    Simply Wall St·12/13/2025 13:27:35
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    • Lockheed Martin recently reported that construction of its 88,000-square-foot Missile Assembly Building-5 in Courtland, Alabama, to support Next Generation Interceptor production is nearing completion, with operations targeted for early 2026 as part of a broader investment in U.S. homeland missile defense infrastructure.
    • This purpose-built, “born digital” NGI facility highlights how Lockheed Martin is weaving advanced digital engineering and scalable manufacturing into missile defense, potentially reshaping its role in future high-complexity defense programs.
    • We’ll now examine how progress on the NGI production facility could influence Lockheed Martin’s investment narrative around growth, margins, and technology leadership.

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    Lockheed Martin Investment Narrative Recap

    To own Lockheed Martin, you need to believe that sustained demand for advanced defense systems and U.S. homeland missile defense will support long-term contracts, even as recent program charges pressure margins. The NGI-focused Courtland facility news reinforces the growth and technology story but does not materially change the key near term swing factors, which remain execution on complex fixed price programs and exposure to shifting U.S. and allied budget priorities.

    Among recent announcements, the new US$3.0 billion revolving credit agreement stands out alongside the NGI expansion, as it underpins liquidity while Lockheed Martin invests in large, technically complex programs. This additional financial flexibility may matter if further cost overruns or regulatory and legal outcomes, such as the unresolved US$4.6 billion IRS tax dispute, increase cash needs or compress earnings.

    Yet investors should also be aware that unresolved legal and regulatory issues could still...

    Read the full narrative on Lockheed Martin (it's free!)

    Lockheed Martin's narrative projects $81.0 billion revenue and $7.1 billion earnings by 2028. This requires 4.1% yearly revenue growth and about a $2.9 billion earnings increase from $4.2 billion today.

    Uncover how Lockheed Martin's forecasts yield a $528.17 fair value, a 10% upside to its current price.

    Exploring Other Perspectives

    LMT 1-Year Stock Price Chart
    LMT 1-Year Stock Price Chart

    Twenty six Simply Wall St Community valuations for Lockheed Martin span about US$389 to US$627 per share, reflecting wide variation in personal assumptions. Against that backdrop, ongoing cost overruns and large fixed price contract risks could meaningfully influence how you weigh this diversity of views and the company’s longer term earnings resilience.

    Explore 26 other fair value estimates on Lockheed Martin - why the stock might be worth 19% less than the current price!

    Build Your Own Lockheed Martin Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.