Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Lockheed Martin Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
The financial performance over the analyzed period is characterized by a general contraction in profitability margins accompanied by significant fluctuations in return metrics. While the company maintained relative stability through 2022 and 2023, a marked decline in efficiency is evident starting in late 2024, with a partial recovery observed toward the end of the sequence.
- Profit Margin Trends
- Gross profit and operating profit margins followed a nearly identical downward trajectory. Gross profit margins declined from a peak of 13.39% in June 2022 to a low of 8.16% in mid-2025. Similarly, operating profit margins contracted from 13.50% to 8.29% over the same duration. Net profit margins exhibited greater volatility, peaking at 10.48% in June 2023 before falling to a period low of 5.73% in September 2025. The close alignment between gross and operating margins suggests that the decline in profitability was driven primarily by cost of goods sold or direct production costs rather than administrative or selling expenses.
- Return on Equity (ROE)
- Return on equity demonstrated substantial volatility and a non-linear trend. After starting at 62.10% in March 2022, ROE experienced a sharp ascent, reaching a peak of 109.09% by June 2024. This peak occurred despite the simultaneous decline in profit margins, suggesting a significant reduction in shareholders' equity, likely through share repurchases or increased leverage. Following this peak, ROE entered a steady decline, ending the period at 64.00% in March 2026.
- Return on Assets (ROA)
- Return on assets remained relatively stable between 9% and 13% from March 2022 through September 2024. However, a distinct downturn occurred in December 2024, with ROA dropping to 9.59% and further descending to 6.97% by September 2025. This decline mirrors the contraction seen in net profit margins, indicating that the company's ability to generate profit from its asset base weakened during the 2024-2025 window before recovering slightly to 8.09% by March 2026.
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Return on Sales
Return on Investment
Gross Profit Margin
Lockheed Martin Corp., gross profit margin calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross profit | 2,078) | 2,322) | 2,240) | 734) | 2,323) | 690) | 2,117) | 2,130) | 1,993) | 2,295) | 2,048) | 2,090) | 2,046) | 2,302) | 2,120) | 1,956) | 1,909) | ||||||
| Sales | 18,021) | 20,321) | 18,609) | 18,155) | 17,963) | 18,622) | 17,104) | 18,122) | 17,195) | 18,874) | 16,878) | 16,693) | 15,126) | 18,991) | 16,583) | 15,446) | 14,964) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 9.82% | 10.15% | 8.16% | 8.16% | 10.11% | 9.75% | 11.97% | 11.91% | 12.10% | 12.55% | 12.54% | 12.70% | 12.74% | 12.56% | 12.99% | 13.39% | 13.36% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 4.79% | 4.79% | 1.10% | -0.32% | -2.09% | -2.99% | 3.13% | 9.47% | 10.04% | 9.93% | 9.09% | 6.65% | 7.20% | 5.26% | -1.41% | 2.74% | 3.20% | ||||||
| Caterpillar Inc. | 29.79% | 30.05% | 31.65% | 32.64% | 33.92% | 34.49% | 34.33% | 34.29% | 33.59% | 33.04% | 31.71% | 30.44% | 28.74% | 26.91% | 26.14% | 25.52% | 25.71% | ||||||
| Eaton Corp. plc | 36.89% | 37.59% | 38.10% | 38.16% | 38.45% | 38.20% | 37.83% | 37.53% | 37.06% | 36.36% | 35.54% | 34.51% | 33.64% | 33.19% | 32.83% | 32.55% | 32.36% | ||||||
| GE Aerospace | 31.25% | 31.55% | 32.16% | 31.98% | 31.87% | 30.79% | 27.00% | 24.74% | 22.97% | 21.95% | 23.26% | 23.29% | 24.24% | 24.55% | 24.52% | 25.22% | 24.26% | ||||||
| Honeywell International Inc. | 36.93% | 36.93% | 36.96% | 38.12% | 38.11% | 38.09% | 37.60% | 37.56% | 37.46% | 37.28% | 38.03% | 37.79% | 37.36% | 36.99% | 35.56% | 34.22% | 32.95% | ||||||
| RTX Corp. | 20.21% | 20.08% | 20.13% | 20.05% | 19.53% | 19.09% | 19.21% | 16.38% | 17.01% | 17.54% | 17.36% | 20.43% | 20.53% | 20.38% | 20.49% | 20.17% | 19.94% | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Gross profit margin = 100
× (Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025)
÷ (SalesQ1 2026
+ SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025)
= 100 × (2,078 + 2,322 + 2,240 + 734)
÷ (18,021 + 20,321 + 18,609 + 18,155)
= 9.82%
2 Click competitor name to see calculations.
An analysis of the gross profit margin reveals a sustained long-term downward trend, characterized by a transition from a stable period of profitability to one of increased volatility and margin compression. The margin decreased from a peak of 13.39% in June 2022 to 9.82% by March 2026.
- Margin Erosion and Trends
- The gross profit margin remained relatively resilient between March 2022 and December 2023, fluctuating within a narrow band between 12.54% and 13.39%. However, a consistent decline began in the first quarter of 2024, with the margin falling below the 12% threshold by June 2024.
- Period of Significant Compression
- A sharp contraction in profitability is observed between December 2024 and September 2025. The margin dropped to 9.75% in December 2024, subsequently reaching a low of 8.16% during the second and third quarters of 2025. This period coincides with significant fluctuations in gross profit figures, which dipped as low as 690 million US dollars in December 2024 and 734 million US dollars in June 2025, despite sales remaining robust.
- Revenue and Profitability Divergence
- A divergence is evident between sales growth and gross profit retention. While total sales generally trended upward, reaching a peak of 20.32 billion US dollars in December 2025, the gross profit did not increase proportionally. This suggests an increase in the cost of goods sold or a shift in product mix toward lower-margin contracts.
- Recent Recovery and Stabilization
- A partial recovery occurred in December 2025, where the margin rose to 10.15%, coinciding with the highest recorded quarterly sales. This recovery was short-lived, as the margin moderated to 9.82% by March 2026, indicating that the company is operating at a lower baseline of profitability compared to the 2022-2023 period.
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Operating Profit Margin
Lockheed Martin Corp., operating profit margin calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating profit | 2,063) | 2,331) | 2,280) | 748) | 2,372) | 696) | 2,140) | 2,148) | 2,029) | 2,293) | 2,042) | 2,135) | 2,037) | 2,293) | 2,159) | 1,963) | 1,933) | ||||||
| Sales | 18,021) | 20,321) | 18,609) | 18,155) | 17,963) | 18,622) | 17,104) | 18,122) | 17,195) | 18,874) | 16,878) | 16,693) | 15,126) | 18,991) | 16,583) | 15,446) | 14,964) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 9.88% | 10.30% | 8.31% | 8.29% | 10.24% | 9.87% | 12.08% | 11.98% | 12.20% | 12.59% | 12.57% | 12.80% | 12.78% | 12.65% | 13.15% | 13.47% | 13.50% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 4.63% | 4.79% | -10.24% | -12.27% | -14.63% | -16.10% | -9.08% | -2.31% | -0.93% | -0.99% | -1.86% | -4.62% | -3.58% | -5.33% | -11.99% | -6.98% | -6.53% | ||||||
| Caterpillar Inc. | 17.38% | 17.43% | 18.68% | 19.31% | 20.29% | 21.30% | 21.33% | 21.55% | 21.58% | 20.30% | 18.13% | 16.97% | 14.94% | 13.97% | 14.56% | 13.81% | 13.87% | ||||||
| Eaton Corp. plc | 18.16% | 18.98% | 18.95% | 18.82% | 19.08% | 18.62% | 18.23% | 17.96% | 17.28% | 16.75% | 16.28% | 15.48% | 14.85% | 14.55% | 13.90% | 16.33% | 15.97% | ||||||
| GE Aerospace | 25.05% | 26.03% | 26.24% | 25.57% | 25.46% | 23.29% | 16.88% | 13.80% | 10.44% | 8.49% | 8.08% | 6.92% | 7.40% | 6.05% | 7.05% | 8.12% | 7.31% | ||||||
| Honeywell International Inc. | 14.14% | 14.88% | 18.44% | 19.03% | 19.06% | 19.33% | 19.23% | 19.68% | 19.65% | 19.32% | 20.09% | 19.73% | 19.05% | 18.12% | 17.55% | 17.31% | 17.37% | ||||||
| RTX Corp. | 10.87% | 10.50% | 10.25% | 9.95% | 8.20% | 8.10% | 7.94% | 3.94% | 5.32% | 5.17% | 4.79% | 8.63% | 8.73% | 8.07% | 7.93% | 7.81% | 7.75% | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Operating profit margin = 100
× (Operating profitQ1 2026
+ Operating profitQ4 2025
+ Operating profitQ3 2025
+ Operating profitQ2 2025)
÷ (SalesQ1 2026
+ SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025)
= 100 × (2,063 + 2,331 + 2,280 + 748)
÷ (18,021 + 20,321 + 18,609 + 18,155)
= 9.88%
2 Click competitor name to see calculations.
An overall downward trend in operating profit margins is observed from March 2022 through March 2026. While sales generally exhibited growth over the period, the conversion of revenue into operating profit weakened, resulting in a margin decline from a peak of 13.50% to a concluding value of 9.88%.
- Margin Compression and Long-Term Trend
- A consistent erosion of profitability is evident, characterized by a shift from the 13% range in early 2022 to the 8%–10% range by 2025 and 2026. The margin remained relatively stable between 12.57% and 12.80% throughout much of 2023, but failed to recover to previous levels in subsequent years.
- Operating Profit Volatility
- Significant fluctuations in operating profit are noted in the latter half of the period. Most notably, a sharp contraction occurred in December 2024, where operating profit fell to 696 million USD, driving the margin down to 9.87%. A similar dip is observed in June 2025, with operating profit dropping to 748 million USD and the margin reaching a period low of 8.29%.
- Revenue Growth vs. Profitability Divergence
- An inverse relationship between sales volume and profit margins is observable. Despite sales reaching a peak of 20.32 billion USD in December 2025, the operating profit margin for that quarter (10.30%) remained substantially lower than the margins achieved in March 2022, when sales were significantly lower at 14.96 billion USD. This indicates that revenue expansion did not translate into proportional operating profit growth.
- Recent Performance Stabilization
- Following the volatility of 2024 and mid-2025, the margin showed a slight recovery toward 10.30% in December 2025 before settling at 9.88% in March 2026. This suggests a new, lower baseline for operational profitability compared to the 2022–2023 period.
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Net Profit Margin
Lockheed Martin Corp., net profit margin calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | 1,488) | 1,344) | 1,619) | 342) | 1,712) | 527) | 1,623) | 1,641) | 1,545) | 1,866) | 1,684) | 1,681) | 1,689) | 1,912) | 1,778) | 309) | 1,733) | ||||||
| Sales | 18,021) | 20,321) | 18,609) | 18,155) | 17,963) | 18,622) | 17,104) | 18,122) | 17,195) | 18,874) | 16,878) | 16,693) | 15,126) | 18,991) | 16,583) | 15,446) | 14,964) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 6.38% | 6.69% | 5.73% | 5.85% | 7.66% | 7.51% | 9.36% | 9.48% | 9.73% | 10.24% | 10.29% | 10.48% | 8.60% | 8.69% | 9.07% | 7.33% | 9.45% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 2.46% | 2.50% | -12.20% | -14.18% | -16.58% | -17.77% | -10.88% | -4.68% | -2.81% | -2.86% | -3.74% | -6.08% | -5.86% | -7.41% | -13.75% | -8.69% | -8.00% | ||||||
| Caterpillar Inc. | 14.06% | 13.89% | 15.17% | 15.83% | 16.63% | 17.59% | 17.15% | 17.46% | 17.65% | 16.18% | 14.35% | 13.53% | 12.10% | 11.85% | 13.70% | 13.19% | 13.02% | ||||||
| Eaton Corp. plc | 13.99% | 14.89% | 14.74% | 15.11% | 15.55% | 15.25% | 15.31% | 15.12% | 14.38% | 13.87% | 13.24% | 12.30% | 12.00% | 11.86% | 11.36% | 11.70% | 11.21% | ||||||
| GE Aerospace | 19.21% | 20.57% | 19.99% | 20.43% | 19.41% | 18.67% | 14.28% | 9.25% | 5.96% | 14.68% | 15.08% | 13.91% | 12.35% | 0.31% | -8.10% | -6.18% | -6.70% | ||||||
| Honeywell International Inc. | 10.89% | 12.63% | 15.41% | 14.62% | 14.85% | 14.82% | 15.01% | 15.49% | 15.52% | 15.43% | 14.87% | 15.08% | 14.54% | 14.00% | 15.38% | 14.74% | 15.30% | ||||||
| RTX Corp. | 8.03% | 7.60% | 7.67% | 7.35% | 5.63% | 5.91% | 5.97% | 3.12% | 4.90% | 4.64% | 4.76% | 7.88% | 8.08% | 7.75% | 6.76% | 6.84% | 6.47% | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
Net profit margin = 100
× (Net earningsQ1 2026
+ Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025)
÷ (SalesQ1 2026
+ SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025)
= 100 × (1,488 + 1,344 + 1,619 + 342)
÷ (18,021 + 20,321 + 18,609 + 18,155)
= 6.38%
2 Click competitor name to see calculations.
The analysis of quarterly profitability indicates a period of relative stability and peak performance followed by a sustained contraction in net profit margins. While total sales exhibited a general upward trajectory over the observed period, net earnings demonstrated significant volatility, leading to an overall erosion of profit margins in the latter stages of the timeline.
- Profitability Peaks and Stability
- Between March 2022 and December 2023, the net profit margin remained predominantly within the 7.33% to 10.48% range. A period of peak efficiency was observed during the 2023 calendar year, where margins consistently exceeded 10% between June and December, reaching a high of 10.48% in June 2023. This phase represents the highest level of operational profitability within the analyzed period.
- Margin Compression and Downward Trend
- A clear downward trend in profitability emerged starting in early 2024. The net profit margin declined from 9.73% in March 2024 to a low of 5.73% by June 2025. Despite a slight recovery to 6.69% in December 2025, the margin remained depressed compared to historical levels, closing at 6.38% in March 2026. This contraction suggests an increase in operating costs or a decrease in pricing power that outpaced revenue growth.
- Revenue and Earnings Divergence
- A notable divergence is observed between sales growth and net earnings. Sales increased from 14,964 million US$ in March 2022 to a peak of 20,321 million US$ in December 2025. However, net earnings did not scale proportionally. Significant dips in net earnings occurred in June 2022, December 2024, and June 2025, which directly contributed to the volatility and subsequent decline in the net profit margin. This indicates that higher sales volumes did not translate into sustained proportional increases in bottom-line profitability.
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Return on Equity (ROE)
Lockheed Martin Corp., ROE calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | 1,488) | 1,344) | 1,619) | 342) | 1,712) | 527) | 1,623) | 1,641) | 1,545) | 1,866) | 1,684) | 1,681) | 1,689) | 1,912) | 1,778) | 309) | 1,733) | ||||||
| Stockholders’ equity | 7,489) | 6,721) | 6,181) | 5,334) | 6,683) | 6,333) | 7,200) | 6,175) | 6,650) | 6,835) | 9,274) | 9,240) | 9,646) | 9,266) | 11,966) | 11,432) | 10,002) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 64.00% | 74.65% | 67.95% | 78.82% | 82.34% | 84.26% | 92.71% | 109.09% | 101.89% | 101.24% | 75.11% | 76.41% | 58.97% | 61.86% | 49.05% | 41.16% | 62.10% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 37.88% | 40.98% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 50.53% | 41.67% | 44.89% | 50.57% | 55.01% | 55.37% | 55.04% | 64.26% | 63.77% | 53.02% | 44.48% | 45.85% | 39.18% | 42.25% | 47.28% | 42.96% | 38.07% | ||||||
| Eaton Corp. plc | 20.23% | 21.04% | 20.84% | 21.10% | 21.27% | 20.52% | 19.71% | 18.99% | 17.63% | 16.90% | 16.29% | 15.10% | 14.72% | 14.45% | 14.26% | 14.12% | 13.35% | ||||||
| GE Aerospace | 47.79% | 46.60% | 42.86% | 40.54% | 36.34% | 33.90% | 33.11% | 25.51% | 11.77% | 34.63% | 35.27% | 30.77% | 27.72% | 0.62% | -18.56% | -12.75% | -12.20% | ||||||
| Honeywell International Inc. | 30.18% | 34.01% | 36.52% | 35.52% | 32.59% | 30.64% | 32.65% | 34.13% | 34.81% | 35.68% | 31.42% | 31.52% | 30.89% | 29.74% | 30.36% | 28.96% | 28.58% | ||||||
| RTX Corp. | 10.95% | 10.32% | 10.22% | 9.85% | 7.48% | 7.94% | 7.72% | 3.83% | 5.75% | 5.34% | 4.59% | 7.67% | 7.61% | 7.16% | 6.36% | 6.34% | 5.79% | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
ROE = 100
× (Net earningsQ1 2026
+ Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025)
÷ Stockholders’ equity
= 100 × (1,488 + 1,344 + 1,619 + 342)
÷ 7,489 = 64.00%
2 Click competitor name to see calculations.
The analysis of profitability indicates a period of significant volatility in Return on Equity (ROE), characterized by a sharp ascent followed by a gradual normalization.
- Return on Equity Trajectory
- ROE exhibited a progressive increase from 62.10% in March 2022, reaching a peak of 109.09% in June 2024. This upward trajectory was particularly pronounced throughout 2023, where figures consistently exceeded 75%. Subsequently, a downward trend emerged, with ROE moderating to 64.00% by March 2026.
- Equity Base Dynamics
- A general reduction in stockholders' equity served as a primary driver for the elevated ROE percentages. Equity declined from 10,002 million USD in March 2022 to a low of 5,334 million USD in June 2025. The compression of the equity base magnified the impact of net earnings on the ROE calculation, contributing to the peak ratios observed in 2023 and early 2024.
- Net Earnings Performance
- Net earnings remained relatively stable, generally fluctuating between 1,300 million USD and 1,900 million USD, despite occasional quarterly contractions in June 2022, December 2024, and June 2025. The relative stability of these earnings against a shrinking equity base explains the mechanical surge in ROE. The stabilization of earnings around 1,488 million USD, coupled with a modest recovery in equity to 7,489 million USD by March 2026, resulted in the observed normalization of the profitability ratio.
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Return on Assets (ROA)
Lockheed Martin Corp., ROA calculation (quarterly data)
| Mar 29, 2026 | Dec 31, 2025 | Sep 28, 2025 | Jun 29, 2025 | Mar 30, 2025 | Dec 31, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 24, 2023 | Jun 25, 2023 | Mar 26, 2023 | Dec 31, 2022 | Sep 25, 2022 | Jun 26, 2022 | Mar 27, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | 1,488) | 1,344) | 1,619) | 342) | 1,712) | 527) | 1,623) | 1,641) | 1,545) | 1,866) | 1,684) | 1,681) | 1,689) | 1,912) | 1,778) | 309) | 1,733) | ||||||
| Total assets | 59,238) | 59,840) | 60,276) | 58,870) | 56,669) | 55,617) | 55,520) | 55,076) | 54,963) | 52,456) | 56,666) | 56,978) | 54,622) | 52,880) | 52,030) | 51,758) | 51,510) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 8.09% | 8.38% | 6.97% | 7.14% | 9.71% | 9.59% | 12.02% | 12.23% | 12.33% | 13.19% | 12.29% | 12.39% | 10.41% | 10.84% | 11.28% | 9.09% | 12.06% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 1.38% | 1.33% | -6.57% | -6.89% | -7.36% | -7.56% | -5.79% | -2.41% | -1.60% | -1.62% | -2.11% | -3.32% | -3.03% | -3.60% | -6.14% | -3.90% | -3.60% | ||||||
| Caterpillar Inc. | 9.87% | 9.01% | 9.89% | 10.45% | 11.70% | 12.30% | 12.38% | 13.21% | 13.43% | 11.81% | 10.50% | 9.79% | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | ||||||
| Eaton Corp. plc | 7.24% | 9.91% | 9.66% | 9.69% | 10.04% | 9.89% | 9.60% | 9.27% | 8.83% | 8.37% | 8.03% | 7.37% | 7.23% | 7.03% | 6.67% | 6.58% | 6.30% | ||||||
| GE Aerospace | 6.72% | 6.69% | 6.29% | 6.19% | 5.64% | 5.32% | 4.93% | 3.85% | 2.14% | 5.81% | 6.45% | 5.89% | 5.33% | 0.12% | -3.23% | -2.38% | -2.48% | ||||||
| Honeywell International Inc. | 5.54% | 6.42% | 7.57% | 7.29% | 7.57% | 7.59% | 7.73% | 8.34% | 8.72% | 9.20% | 8.83% | 8.75% | 8.73% | 7.97% | 8.92% | 8.16% | 8.29% | ||||||
| RTX Corp. | 4.26% | 3.94% | 3.91% | 3.68% | 2.79% | 2.93% | 2.86% | 1.40% | 2.17% | 1.97% | 1.96% | 3.43% | 3.43% | 3.27% | 2.82% | 2.81% | 2.63% | ||||||
Based on: 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27).
1 Q1 2026 Calculation
ROA = 100
× (Net earningsQ1 2026
+ Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025)
÷ Total assets
= 100 × (1,488 + 1,344 + 1,619 + 342)
÷ 59,238 = 8.09%
2 Click competitor name to see calculations.
The analysis of profitability indicates a period of stability and growth in asset efficiency followed by a notable decline in the latter half of the observed timeframe. Between March 2022 and December 2023, return on assets exhibited relative strength, peaking at 13.19% in the fourth quarter of 2023. However, a downward trend emerged starting in late 2024, with the ratio falling below 10% and reaching a trough of 6.97% in June 2025, before partially recovering to 8.09% by March 2026.
- Return on Assets (ROA) Dynamics
- Asset efficiency remained robust for the first two years of the period, generally fluctuating between 9% and 13%. A structural decline is evident starting in December 2024, where the ROA dropped to 9.59% and continued to diminish through mid-2025. This indicates a decrease in the company's ability to generate profit from its total asset base during the 2024-2026 period compared to the 2022-2023 period.
- Net Earnings Volatility
- Net earnings demonstrate significant quarterly variance. While the baseline typically ranges between $1.4 billion and $1.9 billion, sharp contractions are observed in June 2022 ($309 million), December 2024 ($527 million), and June 2025 ($342 million). These earnings troughs correlate directly with the lowest recorded ROA percentages, suggesting that short-term profitability shocks are the primary drivers of the volatility in asset returns.
- Total Asset Growth
- A consistent upward trajectory in the asset base is observed, with total assets increasing from $51.51 billion in March 2022 to $59.24 billion by March 2026. The expansion of the denominator in the ROA calculation, combined with the aforementioned earnings volatility, contributed to the overall compression of the return percentage during the final segments of the analysis.
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