Lockheed Martin and Howmet Aerospace Surge Amid Increased Defense Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2026
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Howmet Aerospace achieved record revenue of $8.3 billion in 2025, marking an 11% increase, with earnings per share (EPS) rising 32% to $3.71, highlighting its critical role and strong demand in the defense market.
- Increased Defense Budget: The Trump administration's proposal to raise the 2027 U.S. defense budget to $1.5 trillion positions Lockheed Martin, as the lead contractor for the F-35, to benefit significantly, ensuring a steady cash flow and continued dividend growth.
- Dividend Yield Comparison: Lockheed Martin boasts a dividend yield of approximately 2.2%, having increased dividends for 23 consecutive years, while Howmet Aerospace's yield is only 0.18%, showcasing Lockheed's superior shareholder return strategy.
- Market Outlook Analysis: Although Howmet Aerospace shows greater growth potential, its forward P/E ratio exceeds 54, significantly higher than Lockheed's 20.6, indicating that much of Howmet's growth is already priced in, prompting investors to choose wisely.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to rise
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 516.500
Low
430.00
Averages
535.50
High
605.00
Current: 516.500
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is an aerospace and defense technology company. The Company's segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The Aeronautics segment is engaged in research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. The MFC segment provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; engineering support and integration services. The RMS segment designs, manufactures, services and supports various military and commercial helicopters, sea and land-based missile defense systems. The Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Digital Manufacturing Edge: The MAB-5 facility consolidates advanced digital manufacturing tools and smart processes, employing a 'digital twin' methodology that reduces risks from design through sustainment, thereby improving production efficiency and product quality.
- Rapid Technology Adaptation: The modular architecture of NGI allows for quick integration of new technologies, avoiding the high costs associated with traditional systems during upgrades, ensuring the system can swiftly respond to emerging threats and bolster national defense.
- Regional Economic Growth: The opening of the new facility will create high-skill job opportunities and strengthen the local economy, while reinforcing Alabama's position as a national defense hub, reflecting Lockheed Martin's long-term commitment to the region.
See More
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- Interest from Eastern Europe: Countries like Poland and certain Baltic nations may express interest in hosting nuclear-capable bombers, especially following President Trump's pledge to increase troop presence, thereby strengthening their defense capabilities and strategic position within NATO.
- Increased Defense Spending: As Europe seeks to reduce reliance on the U.S. and boost its defense spending, there is expected to be a surge in demand for dual-capable aircraft like the F-35, which will significantly benefit companies such as BAE Systems, Lockheed Martin, and Rolls-Royce.
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See More
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- Efficiency Improvements: The facility integrates digital engineering and automated manufacturing processes, which are expected to significantly enhance production efficiency and quality control, ensuring high standards for interceptor production and supporting the Defense Department's missile defense modernization strategy.
- Critical Design Review Progress: The NGI program is advancing towards its Critical Design Review, which will validate whether the system's design is ready for production, marking a technological leap for Lockheed Martin in countering advanced intercontinental ballistic missile threats.
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See More
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- New Contract Announcement: Viasat revealed a subcontract with Lockheed Martin to provide high-bandwidth Hybrid SATCOM technology for two NOAA C-130J Hurricane Hunter aircraft, enhancing its application potential in meteorological monitoring.
- Potential for Expansion: The contract mentions the possibility of additional aircraft, suggesting Viasat could secure more orders in the future, although the initial contract value remains undisclosed, necessitating close attention to its financial implications.
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See More
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- Future Enhancements: The HSA platform is designed to accommodate multiple antenna apertures, enabling multi-network and multi-orbit connectivity, which allows for future enhancements to the C-130J aircraft, increasing its potential applications in meteorological monitoring.
- Contract Details: Although the financial terms of the contract with Lockheed Martin were not disclosed, this collaboration is expected to contribute to mid-single-digit revenue growth for Viasat, further solidifying its position in the satellite communications market.
- Financial Outlook: Viasat anticipates approximately $180 million in free cash flow for fiscal 2027, indicating the company's financial health and growth potential, particularly through partnerships with major defense contractors.
See More
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- Defense and Space Infrastructure: Redwire plays a crucial role in space infrastructure and defense technology, providing hardware like solar panels and robotic arms that supported NASA's Artemis II mission, highlighting its importance in national security.
- Contracts and Market Opportunities: Redwire was selected as one of 14 companies by the U.S. Space Force to compete for an $1.8 billion contract for advanced space surveillance and reconnaissance satellites, indicating its competitiveness and market opportunities in the defense sector.
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