Lockheed Martin: The Defense Supercycle Is Here, But Not All Growth Will Flow To The Bottom Line
Lockheed Martin is experiencing a defense supercycle, with significant increases in defense spending projected for FY27. However, the company faces challenges that may prevent all growth from benefiting its bottom line. Supply chain disruptions and shortages of critical materials are among the factors impacting profitability.
- ▪The FY27 defense budget nearly doubles Research & Procurement spending.
- ▪Core Lockheed Martin programs like the F-35 are seeing substantial increases, with a 62% rise in funding.
- ▪Lockheed Martin's backlog is currently at $186.4 billion, with $63 billion expected to be recognizable in the near term.
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