Aerospace & Defense
Lockheed Martin delivered sharply higher Q2 FY2026 profitability, with revenue up 10.5% year over year to $20.1B and net income up 436.8% to $1.8B, primarily reflecting the absence of major 2025 reach-forward losses and stronger missile-defense and F-35 production activity. Source: 10-Q Item 2 MD&A, pp.28-35.
Key risk: High leverage relative to equity
Long-term debt was $20.5B at Q2 FY2026, while stockholders' equity was $8.8B, producing a debt-to-equity ratio of 6.12x. This capital structure may make equity value and financial flexibility more sensitive to changes in borrowing costs, operating performance, or cash-flow generation.
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