Did Lockheed Martin’s (LMT) Autonomous Air Systems Partnership Just Shift Its Investment Narrative?

• At the recent DSEI global defence conference in the United Kingdom, BAE Systems and Lockheed Martin Skunk Works announced a partnership to co-develop modular, rapidly deployable uncrewed autonomous air systems focused on electronic warfare and attack capabilities.
• This collaboration highlights the accelerated industry push toward integrating adaptable autonomous systems that can support and enhance the survivability of existing crewed combat platforms across multiple operational domains.
• We’ll now explore how this focus on modular, uncrewed systems could shape Lockheed Martin’s investment narrative and future growth outlook.

We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Lockheed Martin Investment Narrative Recap

Owning Lockheed Martin means believing in the company’s ability to deliver on advanced defense platforms and maintain technological leadership amid shifting global threats and budget priorities. While the recent partnership with BAE Systems to co-develop modular uncrewed air systems signals a reinforced focus on innovation, it does not materially alter the current near-term catalyst, sustained demand for high-value programs like the F-35, or the biggest risk, which remains operational setbacks on legacy contracts and margin pressure from cost overruns.

Among recent announcements, Lockheed Martin’s Q2 2025 earnings highlighted significant losses in key segments, further magnifying the risk of profit compression from fixed-price contracts and program execution challenges. This context sets the stage for the new uncrewed systems initiative, suggesting the company is seeking future growth opportunities even as margin headwinds remain top of mind for investors.

By contrast, investors should remain aware of ongoing legal and regulatory issues that may significantly impact future cash flow and...

Read the full narrative on Lockheed Martin (it's free!)

Lockheed Martin's outlook anticipates $81.0 billion in revenue and $7.1 billion in earnings by 2028. This is based on an expected 4.1% annual revenue growth rate and represents an increase in earnings of $2.9 billion from current earnings of $4.2 billion.

Uncover how Lockheed Martin's forecasts yield a $476.67 fair value, in line with its current price.

Exploring Other Perspectives

Twenty-seven fair value estimates from the Simply Wall St Community place Lockheed Martin’s worth between US$374 and US$573 per share. As participants debate potential upsides, many remain focused on ongoing cost overruns and the risk of further profit declines amid technical challenges on legacy contracts.

Explore 27 other fair value estimates on Lockheed Martin - why the stock might be worth as much as 21% more than the current price!

Build Your Own Lockheed Martin Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lockheed Martin research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Lockheed Martin research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lockheed Martin's overall financial health at a glance.

No Opportunity In Lockheed Martin?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• These 10 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com