Lockheed Martin Stock Soars on Unprecedented Contract Volume

Lockheed Martin is demonstrating formidable business momentum as the defense giant secures an extraordinary $179 billion in contracted orders. This massive backlog represents more than two and a half years of revenue at current sales levels, positioning the aerospace and defense leader for sustained growth amid escalating global demand for advanced weapon systems. Despite recent stock price softness, the company's operational and financial metrics tell a compelling story.

The corporation's third-quarter 2025 financial release revealed powerful operational results. Revenue advanced 8.8% to $18.6 billion, while earnings per share significantly surpassed market projections at $6.95 compared to anticipated $6.33.

Cash generation remained exceptionally strong, with operating cash flow reaching $3.7 billion and free cash flow standing at $3.3 billion. This financial health enables substantial shareholder returns, with $1.8 billion distributed through dividends and share repurchases during the quarter alone. Investors received another dividend increase to $3.45 per share, marking the 23rd consecutive year of payout growth.

Historic Missile Contract Accelerates Growth

Lockheed Martin's Missiles and Fire Control division secured what stands as its largest contract ever—a $9.8 billion agreement with the U.S. Army for Patriot Advanced Capability-3 missile systems. The order encompasses 1,970 PAC-3 Missile Segment Enhancement interceptors.

Production capabilities have expanded sufficiently to enable delivery of over 600 interceptors during 2025, demonstrating the company's successful manufacturing ramp-up. With the Pentagon pushing for dramatically increased missile output against a backdrop of international tensions, this landmark agreement likely represents merely the initial phase of expanded defense procurement.

Should investors sell immediately? Or is it worth buying Lockheed?

F-35 Program Achieves Delivery Milestones

Lockheed Martin's F-35 Lightning II program achieved record delivery volumes with 143 aircraft transferred to customers by the close of the third quarter. Production stability is further ensured through finalized contracts for lots 18 and 19, securing the program's medium-term outlook.

International expansion continues with potentially transformative deals under discussion. Reports indicate Turkey is considering a fighter jet acquisition potentially exceeding $10 billion in value. European partnerships are also strengthening, with Rheinmetall authorized to manufacture missiles in Germany—a collaboration that reinforces Lockheed Martin's position as a crucial supplier of critical defense systems.

Analyst Confidence Builds

Wall Street research firms have responded to these developments with upward revisions. Bernstein elevated its price target from $497 to $545, citing robust growth driven by F-35, CH-53K, and PAC-3 orders. Truist followed by raising its target from $440 to $500, while Alembic Global upgraded the stock to "Overweight." The consensus analyst price target consequently climbed from $516.56 to $526.88.

With market capitalization approximating $113 billion, Lockheed Martin maintains its heavyweight status within the global defense sector, supported by sound fundamentals and an unprecedented order portfolio that provides exceptional revenue visibility.