Lockheed Martin stock gains contracts as Saudi F-35 sale advances
Published on 09/19/2026 at 12:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Lockheed Martin Corporation (ISIN US5398301094) stock was quoted around USD 538.09 on the New York Stock Exchange as of September 18, 2026, with the shares trading roughly 4.6 percent below an indicated intrinsic value of USD 563.76.
Saudi F-35 approval drives attention
On September 18, 2026, the U.S. State Department approved a possible sale of 48 F-35 Lightning II fighter jets to Saudi Arabia with an estimated value of USD 24.3 billion, pending Congressional review and any final contracting steps, according to Ahram Online.
The potential package includes 48 F-35 Lightning II aircraft and associated engines, communications equipment, spare parts and support items, with Lockheed Martin named as one of the principal contractors on the deal alongside engine supplier Pratt and Whitney Military Engines, as reported by Ahram Online.
The Saudi approval would make the kingdom the first Arab nation and only the second country in the wider Middle East after Israel to operate the fifth-generation F-35 fighter, highlighting the platform's strategic role and potential for long-term production and sustainment revenue for Lockheed Martin if contracts are finalized, as outlined by Ahram Online.
New Navy F-35 support contract and German F-35A rollout
Alongside the Saudi approval, Lockheed Martin secured an USD 871.2 million contract modification from the U.S. Navy to expand support equipment capacity for the F-35 Lightning II site activation and hardware non-recurring sustainment effort, as described by Morningstar.
The Navy contract, which adds to an existing agreement, funds additional capacity for support equipment and provides initial sustainment supplies and services to establish and activate land-based and at-sea operation sites for F-35 jets serving the Air Force, Marine Corps, Navy and foreign military sales customers, according to Morningstar.
Work under this USD 871.2 million modification is expected to be completed in February 2031, with roughly 90 percent of the activity in El Segundo, California and the remaining 10 percent in Fort Worth, Texas, providing a multi-year backlog of services and support work, as reported by Morningstar.
In Europe, Germany received its first F-35A Lightning II fighter jet under a 2022 agreement to replace its aging Tornado fleet, with Lockheed Martin presenting the aircraft to German officials at the company’s F-35 production facility in Fort Worth, Texas on September 18, 2026, according to Yahoo Finance.
The German program covers 35 F-35A jets ordered in 2022, with the first eight aircraft slated for training at Ebbing Air National Guard Base in Arkansas ahead of expected delivery of the first jets in-country by late 2027 and full operational capability around 2029, as outlined by Turkiye Today.
Missile production framework adds to long-term pipeline
Lockheed Martin also signed a framework agreement with the U.S. Department of Defense to expand production capacity for the AIM-260 Joint Advanced Tactical Missile, a next-generation air-to-air weapon, under the Arsenal of Freedom initiative aimed at increasing munitions output, as reported by The Defense Post.
The AIM-260 framework is designed to set the stage for future multiyear procurement authority for the missile, providing long-term demand signals to suppliers and enabling investments in manufacturing capacity, workforce and production efficiencies across Lockheed Martin’s munitions supply chain, according to The Defense Post.
From an investor perspective, the combination of the prospective USD 24.3 billion Saudi F-35 deal, the USD 871.2 million Navy F-35 support contract and the AIM-260 multiyear framework underscores a robust pipeline of high-value defense programs that can support revenue and cash flows over the coming years once contractual approvals and production schedules are fully locked in.
Recent stock performance and valuation metrics
On September 18, 2026, Lockheed Martin shares were reported at USD 534.35 in the New York session, down 0.7 percent intraday with trading having seen a low of USD 533.28 and an opening level around USD 536.98, according to a price snapshot published by finanzen.ch.
A valuation overview on September 18, 2026 indicated the stock trading at USD 533.38, approximately 5.4 percent below a calculated GF Value of USD 563.76, with a trailing twelve month price-earnings ratio of 19.66 times compared with a five year median price-earnings multiple of 20.42 times, suggesting a modest discount to intrinsic value and historical valuation levels, as analyzed by GuruFocus.
A separate valuation note discussed the shares at USD 538.09 as of September 18, 2026, about 4.6 percent below the same GF Value reference of USD 563.76, with a trailing price-earnings ratio of 19.83 times still slightly below the five year median of 20.42 times, reinforcing the view that Lockheed Martin stock trades at a small discount relative to estimated intrinsic value and historical earnings multiples, as highlighted by GuruFocus.
Over the one month period from August 19, 2026 to September 19, 2026, Lockheed Martin showed a negative monthly return, with one performance table listing a monthly change of minus 11.38 percent, placing the stock among the notable losers in a basket of aerospace and defense names for that timeframe, according to INDmoney.
Dividend profile and investor view
Lockheed Martin’s dividend profile remains a key element of its equity story; valuation analysis on September 18, 2026 cited a dividend yield of roughly 2.55 to 2.56 percent supported by a payout ratio near 50 percent and a three year dividend growth rate of about 5.4 percent, indicating that the company has combined moderate growth in shareholder distributions with a balanced approach to earnings retention, according to GuruFocus.
In the same assessment, Lockheed Martin’s GF Score, a composite indicator designed to capture profitability, growth, financial strength and valuation, stood at 80 out of 100, underscoring solid fundamentals and financial health in the context of the company’s broad defense portfolio and recurring revenue streams from long-term government contracts, as noted by GuruFocus.
For income-oriented investors, the combination of a mid single digit dividend growth rate over three years, a payout ratio around half of earnings and multi-year visibility on large programs such as F-35 fighter jets, AIM-260 missiles and helicopter orders can support the view that the current dividend stream is sustainable, though it ultimately depends on continued budget allocations and program execution.
Next earnings and key dates
While the current week’s news flow is dominated by defense contract approvals, new framework agreements and program milestones, investors will also watch for the next quarterly earnings date and potential guidance updates from Lockheed Martin as the company integrates these developments into its order backlog and long-term outlook once the corporate calendar clarifies upcoming reporting dates.
Lockheed Martin stock and closing price context
As of September 18, 2026, available New York session data placed the Lockheed Martin stock around USD 534.35 with a modest intraday decline of approximately 0.7 percent on the day, while valuation commentary referenced levels between USD 533.38 and USD 538.09 in relation to an intrinsic value estimate of USD 563.76, indicating that the shares were trading roughly 4.6 to 5.4 percent below that valuation reference in the latest trading, based on figures cited by finanzen.ch and GuruFocus.
Lockheed Martin stock at a glance
- Company: Lockheed Martin Corporation
- ISIN: US5398301094
- Ticker: LMT
- Trading venue: NYSE
- Price (as of September 18, 2026): 534.35 USD
- Market capitalization: 534.35 USD (as of September 18, 2026)
- Sector / Industry: Aerospace and Defense
- Index membership: S&P 500
