Investment Comparison: Lockheed Martin vs. Howmet Aerospace
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Howmet Aerospace Growth: Howmet Aerospace reported an 11% revenue increase to $8.3 billion in 2025, with EPS rising 32% to $3.71, driven by critical components operating under extreme conditions, and forecasts 2026 revenue of $9 billion to $9.2 billion, indicating strong market demand and growth potential.
- Lockheed Martin Stability: Lockheed Martin achieved $75 billion in revenue for 2025, with EPS declining 23% to $21.49 due to non-recurring charges; however, its $194 billion backlog ensures revenue stability for the next two and a half years, highlighting its strong position in the defense market.
- Defense Spending Boost: With the U.S. defense budget projected to reach $1.5 trillion by 2027, Lockheed's missile and fire control segment benefits from a $4.7 billion Army contract, further solidifying its cash flow and market share.
- Dividend Policy Differences: Lockheed has increased its dividend for 23 consecutive years, raising it by 5% to $3.45 per quarter, yielding approximately 2.2%, while Howmet's yield is only 0.18%, showcasing Lockheed's advantage in shareholder returns.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 607.490
Low
430.00
Averages
535.50
High
605.00
Current: 607.490
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its 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.
Lockheed Martin Set for Potential Blockbuster Quarter
- Strong Quarter Anticipation: Lockheed Martin's upcoming quarterly report is expected to be a “blockbuster,” with CEO Jim Taiclet excelling in managing government orders, indicating sustained demand and market confidence in the defense sector.
- Surge in Missile System Demand: Cramer highlighted the ongoing increase in demand for missile systems due to the Ukraine war and Israel's defense needs, suggesting that Lockheed Martin will significantly benefit from this trend, enhancing its market position.
- Defensive System Advantages: The company holds a crucial position in key defense projects like the Terminal High Altitude Area Defense (THAAD) and Aegis Ballistic Missile Defense (BMD), ensuring its competitiveness and technological leadership in the global defense market.
- Investment Potential Analysis: While Lockheed Martin shows strong investment potential, analysts note that certain AI stocks may offer greater upside and lower downside risk, prompting investors to choose wisely.
See More
Lockheed Martin and Howmet Aerospace Surge Amid Increased Defense Spending
- 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.
See More
Investment Comparison: Lockheed Martin vs. Howmet Aerospace
- Howmet Aerospace Growth: Howmet Aerospace reported an 11% revenue increase to $8.3 billion in 2025, with EPS rising 32% to $3.71, driven by critical components operating under extreme conditions, and forecasts 2026 revenue of $9 billion to $9.2 billion, indicating strong market demand and growth potential.
- Lockheed Martin Stability: Lockheed Martin achieved $75 billion in revenue for 2025, with EPS declining 23% to $21.49 due to non-recurring charges; however, its $194 billion backlog ensures revenue stability for the next two and a half years, highlighting its strong position in the defense market.
- Defense Spending Boost: With the U.S. defense budget projected to reach $1.5 trillion by 2027, Lockheed's missile and fire control segment benefits from a $4.7 billion Army contract, further solidifying its cash flow and market share.
- Dividend Policy Differences: Lockheed has increased its dividend for 23 consecutive years, raising it by 5% to $3.45 per quarter, yielding approximately 2.2%, while Howmet's yield is only 0.18%, showcasing Lockheed's advantage in shareholder returns.
See More
Lockheed Martin vs. Howmet Aerospace: Which Stock is the Better Buy?
- Howmet Aerospace Growth: Howmet reported a record revenue of $8.3 billion in 2025, an 11% increase, with EPS rising 32% to $3.71, indicating strong demand for its critical components in the aerospace and defense sectors, particularly for the F-35 program.
- Optimistic Future Projections: The company forecasts 2026 revenue between $9 billion and $9.2 billion, reflecting a 9.6% increase at the midpoint, alongside an 18% rise in adjusted EPS, which will provide sufficient free cash flow to continue boosting dividends, showcasing resilience in uncertain market conditions.
- Lockheed Martin Stability: Lockheed achieved $75 billion in revenue for 2025, with EPS down 23% to $21.49 due to non-recurring charges; however, its $194 billion backlog ensures stable future cash flows, highlighting its critical role in the growing defense budget.
- Dividend Performance Comparison: Lockheed has increased its dividend for 23 consecutive years, with a recent 5% boost to $3.45 per share, yielding around 2.2%, while Howmet's shorter dividend history and lower yield suggest Lockheed offers more attractive returns for investors.
See More
Wall Street Earnings Season Faces Major Test
- Earnings Season Significance: Wall Street is set for a packed earnings season featuring key companies like Capital One and Boeing, with investors eager to glean insights into the economic impact of the Iran war from these reports.
- Capital One Performance Focus: Capital One is scheduled to report earnings on Tuesday, with market attention on its consumer health metrics and the progress of its acquisitions of Discover and Brex, particularly amid rising economic uncertainties.
- Boeing Earnings Outlook: Boeing is expected to release its earnings report on Wednesday, with market focus on order volumes in both its commercial and defense sectors, as well as free cash flow performance, especially after previous unexpected losses.
- GE Vernova Order Growth: GE Vernova will report alongside Boeing, with first-quarter new orders anticipated to reach $14.4 billion, reflecting a 65% year-over-year increase, indicating strong market performance amid rising electricity demand.
See More
US Defense Budget Surge Drives ETF Returns
- Defense Budget Surge: Trump's fiscal 2027 budget request of $1.5 trillion represents a roughly 40% year-over-year increase, providing strong structural support for the SPDR S&P Aerospace & Defense ETF (XAR), which is expected to drive earnings growth in related stocks.
- Strong ETF Performance: Over the past year, XAR has delivered nearly a 66% return, rising from around $159 to over $270, indicating sustained investor confidence in the defense sector amid current geopolitical tensions.
- Single Sector Risk: XAR allocates nearly all assets to the defense industrial sector, lacking diversification into other industries, which exposes it to significant risks if defense budgets contract or procurement cycles slow, necessitating clear investor awareness of this risk.
- Amplified Volatility: The equal-weight strategy of XAR means smaller innovative firms are weighted the same as larger contractors, which can amplify volatility during risk-off periods, requiring investors to accept this volatility in exchange for potential high returns.
See More
Lockheed Martin Set for Potential Blockbuster Quarter
- Strong Quarter Anticipation: Lockheed Martin's upcoming quarterly report is expected to be a “blockbuster,” with CEO Jim Taiclet excelling in managing government orders, indicating sustained demand and market confidence in the defense sector.
- Surge in Missile System Demand: Cramer highlighted the ongoing increase in demand for missile systems due to the Ukraine war and Israel's defense needs, suggesting that Lockheed Martin will significantly benefit from this trend, enhancing its market position.
- Defensive System Advantages: The company holds a crucial position in key defense projects like the Terminal High Altitude Area Defense (THAAD) and Aegis Ballistic Missile Defense (BMD), ensuring its competitiveness and technological leadership in the global defense market.
- Investment Potential Analysis: While Lockheed Martin shows strong investment potential, analysts note that certain AI stocks may offer greater upside and lower downside risk, prompting investors to choose wisely.
See More
Lockheed Martin and Howmet Aerospace Surge Amid Increased Defense Spending
- 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.
See More
Investment Comparison: Lockheed Martin vs. Howmet Aerospace
- Howmet Aerospace Growth: Howmet Aerospace reported an 11% revenue increase to $8.3 billion in 2025, with EPS rising 32% to $3.71, driven by critical components operating under extreme conditions, and forecasts 2026 revenue of $9 billion to $9.2 billion, indicating strong market demand and growth potential.
- Lockheed Martin Stability: Lockheed Martin achieved $75 billion in revenue for 2025, with EPS declining 23% to $21.49 due to non-recurring charges; however, its $194 billion backlog ensures revenue stability for the next two and a half years, highlighting its strong position in the defense market.
- Defense Spending Boost: With the U.S. defense budget projected to reach $1.5 trillion by 2027, Lockheed's missile and fire control segment benefits from a $4.7 billion Army contract, further solidifying its cash flow and market share.
- Dividend Policy Differences: Lockheed has increased its dividend for 23 consecutive years, raising it by 5% to $3.45 per quarter, yielding approximately 2.2%, while Howmet's yield is only 0.18%, showcasing Lockheed's advantage in shareholder returns.
See More
Lockheed Martin vs. Howmet Aerospace: Which Stock is the Better Buy?
- Howmet Aerospace Growth: Howmet reported a record revenue of $8.3 billion in 2025, an 11% increase, with EPS rising 32% to $3.71, indicating strong demand for its critical components in the aerospace and defense sectors, particularly for the F-35 program.
- Optimistic Future Projections: The company forecasts 2026 revenue between $9 billion and $9.2 billion, reflecting a 9.6% increase at the midpoint, alongside an 18% rise in adjusted EPS, which will provide sufficient free cash flow to continue boosting dividends, showcasing resilience in uncertain market conditions.
- Lockheed Martin Stability: Lockheed achieved $75 billion in revenue for 2025, with EPS down 23% to $21.49 due to non-recurring charges; however, its $194 billion backlog ensures stable future cash flows, highlighting its critical role in the growing defense budget.
- Dividend Performance Comparison: Lockheed has increased its dividend for 23 consecutive years, with a recent 5% boost to $3.45 per share, yielding around 2.2%, while Howmet's shorter dividend history and lower yield suggest Lockheed offers more attractive returns for investors.
See More
Wall Street Earnings Season Faces Major Test
- Earnings Season Significance: Wall Street is set for a packed earnings season featuring key companies like Capital One and Boeing, with investors eager to glean insights into the economic impact of the Iran war from these reports.
- Capital One Performance Focus: Capital One is scheduled to report earnings on Tuesday, with market attention on its consumer health metrics and the progress of its acquisitions of Discover and Brex, particularly amid rising economic uncertainties.
- Boeing Earnings Outlook: Boeing is expected to release its earnings report on Wednesday, with market focus on order volumes in both its commercial and defense sectors, as well as free cash flow performance, especially after previous unexpected losses.
- GE Vernova Order Growth: GE Vernova will report alongside Boeing, with first-quarter new orders anticipated to reach $14.4 billion, reflecting a 65% year-over-year increase, indicating strong market performance amid rising electricity demand.
See More
US Defense Budget Surge Drives ETF Returns
- Defense Budget Surge: Trump's fiscal 2027 budget request of $1.5 trillion represents a roughly 40% year-over-year increase, providing strong structural support for the SPDR S&P Aerospace & Defense ETF (XAR), which is expected to drive earnings growth in related stocks.
- Strong ETF Performance: Over the past year, XAR has delivered nearly a 66% return, rising from around $159 to over $270, indicating sustained investor confidence in the defense sector amid current geopolitical tensions.
- Single Sector Risk: XAR allocates nearly all assets to the defense industrial sector, lacking diversification into other industries, which exposes it to significant risks if defense budgets contract or procurement cycles slow, necessitating clear investor awareness of this risk.
- Amplified Volatility: The equal-weight strategy of XAR means smaller innovative firms are weighted the same as larger contractors, which can amplify volatility during risk-off periods, requiring investors to accept this volatility in exchange for potential high returns.
See More
