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    What Lockheed Martin (LMT)'s New Missile Deals and RAAF Training Contract Means For Shareholders

    Simply Wall St·02/26/2026 01:25:35
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    • In mid-February 2026, Lockheed Martin announced a major foreign military sale to supply C-130J training devices and upgrades to the Royal Australian Air Force, alongside agreements with the U.S. government to significantly expand THAAD and PAC-3 missile interceptor production.
    • Together with management’s projections for 2026 revenue and profit above Wall Street estimates, these contracts highlight how government partnerships can influence Lockheed Martin’s long-term earnings profile and backlog visibility.
    • We’ll now examine how the expanded THAAD and PAC-3 interceptor production agreements may shape Lockheed Martin’s existing investment narrative.

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    Lockheed Martin Investment Narrative Recap

    To own Lockheed Martin, you have to be comfortable with a business built around large, long-term government programs, where contract visibility and backlog matter as much as quarterly swings. The expanded THAAD and PAC-3 interceptor production deals support that story by tying more of Lockheed’s near term outlook to missile defense, a current bright spot, while leaving key risks such as fixed price program charges and potential shifts in U.S. and allied defense budgets very much in focus.

    The agreement to lift THAAD interceptor output from 96 to 400 per year, on top of more than tripling PAC-3 capacity, is the clearest link between this news and existing catalysts. It reinforces the role of missile defense as a growth driver, particularly alongside management’s 2026 sales guidance of US$77.5 billion to US$80.0 billion and profit forecasts above Wall Street estimates, even as concerns about cost overruns and revenue concentration in a few programs remain unresolved.

    Yet in contrast, investors should still weigh how any future shift in defense budgets away from big missile and aircraft programs could...

    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.

    Uncover how Lockheed Martin's forecasts yield a $652.53 fair value, in line with its current price.

    Exploring Other Perspectives

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

    Some of the lowest ranked analysts took a much harsher view, assuming revenue of about US$80.1 billion and earnings of US$7.2 billion by 2028, and a lower 15.6x PE, which contrasts sharply with the stronger missile defense demand implied by the THAAD and PAC 3 news and shows how far opinions can differ even before these contracts are fully reflected.

    Explore 19 other fair value estimates on Lockheed Martin - why the stock might be worth as much as $668.99!

    Decide For Yourself

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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.