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Can Global Defense Alliances Secure Lockheed Martin's Future Growth?

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Key Takeaways

  • Lockheed Martin leverages global partnerships to diversify supply chains.
  • LMT uses international collaborations to enter new markets, cut costs and tailor defense systems.
  • LMT works with over 50 nations and 350 facilities worldwide to boost innovation.

Lockheed Martin (LMT - Free Report) benefits from global partnerships with international governments and defense companies. LMT strengthens its supply chain by sourcing components and manufacturing across multiple countries. This reduces dependence on any single region and lowers the risk of disruptions.

These partnerships also help Lockheed Martin enter new markets and generate additional revenues. The company can access local manufacturing skills and experience by working with foreign partners. This can reduce expenses, increase productivity, and assist the business in customizing its goods to satisfy particular local needs.

Close collaboration with allies enhances connectivity, allowing Lockheed Martin's military systems to function flawlessly with those of partner nations. This is a significant benefit for international military operations and increases the appeal of Lockheed Martin's systems to ally customers.

Global partnerships also support innovation. More advanced defense solutions result from collaborative research and development initiatives that save costs, speed up technological advancement and bring together a varied pool of technical expertise.

LMT works with more than 50 nations globally, assisting them in safeguarding their national interests while bolstering their internal economies. The organization has over 350 facilities around the world focused on achieving its common goals.

Overall, these alliances bolster Lockheed Martin’s competitiveness, drive long-term growth, and preserve its standing as a critical defense partner for U.S. allies globally.

Companies Strengthening Operations Through Global Partnerships

Several other U.S. defense companies are also realizing substantial advantages from their global partnerships and expanding portfolios of international contracts. These collaborations are enabling them to broaden market access, enhance technological capabilities and strengthen their competitive positions worldwide, as discussed below:

The Boeing Company (BA - Free Report) is well positioned to drive long-term growth through international collaborations by tapping global markets, leveraging a vast worldwide supplier network, and strengthening customer relationships via localized services and support.

Airbus SE (EADSY - Free Report) relies heavily on international collaborations, which strengthen its competitiveness in the global aerospace duopoly and support its long-term expansion and technological advancement.

LMT Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2025 EPS indicates a decline of 22.59% and that for 2026 EPS implies an increase of 34.57% year over year.

 

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LMT Stock Trades at a Discount

In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.45X, a discount to the industry’s average of 2.5X.

 

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LMT Stock’s Price Performance

In the past three months, the company’s shares have risen 2.1% compared with the industry’s 0.7% growth.

 

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LMT’s Zacks Rank

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


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