Lockheed Martin (LMT) Trades Below Its Historical Average: Bargain or Defense Trap?

A year ago, Lockheed Martin (NYSE:LMT) was a defense giant paying for its own mistakes. In the second quarter of 2025 alone, it booked $1.6 billion of reach-forward losses (charges taken when a fixed-price contract is expected to cost more than it pays) across a classified aircraft program and two helicopter programs. The second quarter of 2026 told a very different story. Sales climbed 11% to $20.1 billion, diluted earnings per share came in at $7.94 versus $1.46, and backlog hit a record $230.4 billion. Management raised its full-year outlook for sales, segment profit, earnings, and free cash flow.