Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Lockheed Martin Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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).
Profitability metrics exhibit a general trend of gradual contraction followed by a significant dip between late 2024 and mid-2025, with a subsequent recovery trend emerging through 2026. While margins have faced pressure, return ratios remain high, although they mirror the same volatility observed in the margin data.
- Margin Analysis
- Gross and operating profit margins maintained a tight correlation throughout the period, typically fluctuating within a narrow range of 12% to 13.5% until December 2023. A notable decline occurred starting in December 2024, where gross profit margins dropped to 9.75%, reaching a trough of 8.16% in mid-2025. Operating margins followed an identical trajectory, bottoming at 8.29% in June 2025 before recovering to 11.78% by September 2026. Net profit margins showed higher volatility, peaking at 10.48% in June 2023 before falling to a period low of 5.73% in September 2025, subsequently rebounding to 8.23% by the end of the sequence.
- Return on Assets (ROA)
- The return on assets remained relatively stable, hovering around 12% for the first two years. A contraction phase began in late 2024, with ROA falling to 9.59% in December 2024 and reaching its lowest point of 6.97% in September 2025. A recovery phase followed, with the ratio returning to 10.10% by September 2026, indicating a restoration of asset efficiency.
- Return on Equity (ROE)
- Return on equity values are significantly elevated compared to ROA, suggesting a high degree of financial leverage. ROE experienced substantial growth during 2023, peaking at 109.09% in June 2023. This was followed by a steady decline throughout 2024 and 2025, reaching a low of 64.00% in March 2026. By September 2026, ROE stabilized at 64.72%. The extreme variance in ROE relative to other profitability markers indicates that equity returns are highly sensitive to changes in the capital structure or net income fluctuations.
- Comparative Period Performance
- The data reveals a clear cyclical pattern of profitability. The period from March 2022 to December 2023 was characterized by stability and peak performance in return ratios. The period from December 2024 to September 2025 represents a systemic decline across all measured profitability indicators. The final period, from December 2025 to September 2026, demonstrates a consistent recovery, with most ratios returning toward their 2022-2023 baselines.
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Gross Profit Margin
Lockheed Martin Corp., gross profit margin calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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 | 2,436) | 2,446) | 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 | 20,711) | 20,063) | 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 | 11.73% | 11.80% | 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. | — | 4.68% | 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. | — | 30.87% | 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 | — | 35.90% | 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 | 31.06% | 30.99% | 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. | 37.72% | 36.51% | 36.93% | 36.93% | 37.14% | 38.21% | 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. | 21.10% | 20.35% | 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: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Gross profit margin = 100
× (Gross profitQ3 2026
+ Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025)
÷ (SalesQ3 2026
+ SalesQ2 2026
+ SalesQ1 2026
+ SalesQ4 2025)
= 100 × (2,436 + 2,446 + 2,078 + 2,322)
÷ (20,711 + 20,063 + 18,021 + 20,321)
= 11.73%
2 Click competitor name to see calculations.
The financial trajectory from early 2022 through late 2026 indicates a period of expanding top-line revenue accompanied by a general compression and subsequent partial recovery of gross profit margins. While total sales exhibited a consistent long-term growth trend, the ability to convert those sales into gross profit fluctuated significantly, particularly between late 2024 and mid-2025.
- Revenue Growth Trends
- Sales figures demonstrate a sustained upward trajectory, increasing from 14.96 billion USD in March 2022 to a peak of 20.71 billion USD by September 2026. This growth reflects a steady expansion of the revenue base over the observed period, with periodic quarterly fluctuations.
- Gross Profit Margin Erosion
- The gross profit margin underwent a gradual decline from 13.36% in March 2022 to approximately 11.9% by mid-2024. This downward movement accelerated sharply in the subsequent period, reaching a minimum of 8.16% during the second and third quarters of 2025.
- Profitability Volatility
- Significant anomalies are observed in gross profit figures for the quarters ending December 31, 2024, and June 29, 2025, where values dropped to 690 million USD and 734 million USD, respectively. These specific intervals represent the most acute periods of margin contraction, contrasting with the simultaneous increase in overall sales volume.
- Recovery and Stabilization Phase
- A recovery trend in profitability began in the final quarter of 2025, with the gross profit margin rising to 10.15%. This improvement continued through 2026, with the margin reaching 11.73% by September 2026, suggesting a return toward historical baseline levels despite the higher scale of operations.
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Operating Profit Margin
Lockheed Martin Corp., operating profit margin calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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 | 2,443) | 2,479) | 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 | 20,711) | 20,063) | 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 | 11.78% | 11.88% | 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. | — | 4.89% | 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. | — | 18.44% | 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 | — | 17.71% | 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 | 24.79% | 24.37% | 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. | 13.32% | 13.72% | 14.14% | 14.88% | 17.98% | 18.83% | 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. | 11.77% | 11.21% | 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: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Operating profit margin = 100
× (Operating profitQ3 2026
+ Operating profitQ2 2026
+ Operating profitQ1 2026
+ Operating profitQ4 2025)
÷ (SalesQ3 2026
+ SalesQ2 2026
+ SalesQ1 2026
+ SalesQ4 2025)
= 100 × (2,443 + 2,479 + 2,063 + 2,331)
÷ (20,711 + 20,063 + 18,021 + 20,321)
= 11.78%
2 Click competitor name to see calculations.
An analysis of the operating profit margin reveals a consistent downward trajectory over the observed period, transitioning from a peak of 13.50% in March 2022 to a low of 8.29% in June 2025. Despite a general increase in sales volume over these years, operating profits did not scale proportionally, leading to a gradual compression of margins.
- Margin Erosion Phase (2022-2023)
- From March 2022 through December 2023, the operating profit margin experienced a steady decline, moving from 13.50% to 12.59%. During this interval, margins remained relatively stable, fluctuating within a narrow band of approximately one percentage point, indicating a period of controlled but declining operational efficiency.
- Significant Contraction and Volatility (2024-2025)
- A period of heightened volatility and sharp contraction is observed between March 2024 and September 2025. The margin dropped below 12% in June 2024 and plummeted to 9.87% by December 2024. This downward pressure culminated in June 2025, where the margin reached its lowest point of 8.29%. These declines were primarily driven by significant reductions in quarterly operating profit during periods where sales remained high or increased, suggesting a temporary misalignment between revenue generation and cost management.
- Recovery and Stabilization (2025-2026)
- Beginning in December 2025, a recovery trend emerged as the operating profit margin climbed back to 10.30%. This upward momentum continued into 2026, with the margin reaching 11.88% in June 2026. While this represents a meaningful recovery from the 2025 lows, the margins in late 2026 remain approximately 1.7 to 1.8 percentage points lower than the levels recorded at the start of the analysis period in early 2022.
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Net Profit Margin
Lockheed Martin Corp., net profit margin calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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 | 1,845) | 1,836) | 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 | 20,711) | 20,063) | 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 | 8.23% | 8.16% | 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. | — | 2.59% | 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. | — | 15.28% | 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 | — | 12.75% | 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 | 18.43% | 18.92% | 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. | 20.98% | 21.58% | 10.89% | 12.63% | 16.23% | 15.02% | 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. | 8.75% | 8.28% | 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: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
Net profit margin = 100
× (Net earningsQ3 2026
+ Net earningsQ2 2026
+ Net earningsQ1 2026
+ Net earningsQ4 2025)
÷ (SalesQ3 2026
+ SalesQ2 2026
+ SalesQ1 2026
+ SalesQ4 2025)
= 100 × (1,845 + 1,836 + 1,488 + 1,344)
÷ (20,711 + 20,063 + 18,021 + 20,321)
= 8.23%
2 Click competitor name to see calculations.
An analysis of net profit margins reveals a non-linear trajectory characterized by a mid-term peak, a subsequent sharp contraction, and an emerging recovery phase. While total sales demonstrated a general upward trend over the period, net earnings exhibited significant quarterly volatility, which directly impacted the stability of profitability ratios.
- Profitability Peak (2023)
- The highest margins were recorded during 2023, reaching a peak of 10.48% in June. Profitability remained above 10% for three consecutive quarters, indicating a period of optimal alignment between revenue growth and cost management.
- Margin Contraction (2024–2025)
- A pronounced downward trend is observed from March 2024 through September 2025. During this interval, the net profit margin declined from 9.73% to a low of 5.73%. This compression occurred despite a general increase in sales volume, suggesting that operating expenses or non-recurring costs grew disproportionately to revenue, particularly in the quarters ending December 2024 and June 2025.
- Recovery Phase (2026)
- A recovery trend emerged in 2026, with the net profit margin ascending from 6.38% in March to 8.23% by September. This upward movement suggests a stabilization of earnings and a return toward the historical profitability levels observed in 2022 and 2023.
In summary, the data indicates that while the company successfully scaled its top-line revenue, net profitability remained susceptible to significant quarterly fluctuations. The period of peak efficiency in 2023 was followed by a period of margin erosion that bottomed out in late 2025 before initiating a steady climb back toward the 8% threshold.
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Return on Equity (ROE)
Lockheed Martin Corp., ROE calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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 | 1,845) | 1,836) | 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 | 10,063) | 8,768) | 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 | 64.72% | 71.70% | 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. | — | 39.92% | 37.88% | 40.98% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | — | 55.91% | 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 | — | 18.90% | 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 | 51.95% | 50.86% | 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. | 31.46% | 44.31% | 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. | 12.13% | 11.66% | 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: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
ROE = 100
× (Net earningsQ3 2026
+ Net earningsQ2 2026
+ Net earningsQ1 2026
+ Net earningsQ4 2025)
÷ Stockholders’ equity
= 100 × (1,845 + 1,836 + 1,488 + 1,344)
÷ 10,063 = 64.72%
2 Click competitor name to see calculations.
The analysis of profitability metrics reveals a period of significant volatility in Return on Equity (ROE), driven primarily by fluctuations in the equity base rather than substantial shifts in net earnings.
- Return on Equity Trends
- ROE exhibited a marked upward trajectory starting in late 2022, ascending from 61.86% in December 2022 to a peak of 109.09% in June 2024. Following this peak, a steady normalization occurred, with the ratio descending to 64.72% by September 2026.
- Equity Base Correlation
- A strong inverse correlation is observed between stockholders' equity and ROE. The equity base declined from 10,002 million US$ in March 2022 to a low of 6,175 million US$ in June 2024. This contraction in the equity base significantly amplified the ROE percentage during this period, as net earnings remained relatively stable.
- Net Earnings Stability
- Net earnings demonstrated periodic volatility, characterized by sharp quarterly dips in June 2022 (309 million US$), December 2024 (527 million US$), and June 2025 (342 million US$). Despite these outliers, the earnings capacity remained resilient, generally oscillating between 1.5 billion and 1.9 billion US$ per quarter, providing a consistent baseline for profitability.
- Long-term Normalization
- Beginning in late 2024, a recovery in stockholders' equity is observed, rising from 6,333 million US$ in September 2024 back to 10,063 million US$ by September 2026. This expansion of the equity base resulted in a corresponding decline in ROE, returning the ratio to levels comparable to the early 2022 period.
Overall, the profitability profile was characterized by an acceleration of ROE due to a reduced equity base between 2022 and 2024, followed by a stabilizing trend as equity levels were restored toward the end of the observed period.
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Return on Assets (ROA)
Lockheed Martin Corp., ROA calculation (quarterly data)
| Sep 27, 2026 | Jun 28, 2026 | 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 | 1,845) | 1,836) | 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 | 64,510) | 62,450) | 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 | 10.10% | 10.07% | 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. | — | 1.47% | 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. | — | 10.57% | 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 | — | 6.81% | 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 | 7.16% | 7.03% | 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. | 13.28% | 10.62% | 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. | 4.76% | 4.45% | 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: 2026-09-27), 10-Q (reporting date: 2026-06-28), 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 Q3 2026 Calculation
ROA = 100
× (Net earningsQ3 2026
+ Net earningsQ2 2026
+ Net earningsQ1 2026
+ Net earningsQ4 2025)
÷ Total assets
= 100 × (1,845 + 1,836 + 1,488 + 1,344)
÷ 64,510 = 10.10%
2 Click competitor name to see calculations.
The return on assets (ROA) exhibited significant volatility over the analyzed period, characterized by an initial phase of stability, a mid-term contraction, and a subsequent recovery. While total assets demonstrated a consistent long-term upward trajectory, fluctuations in net earnings created periodic instability in asset utilization efficiency.
- Asset Base Expansion
- Total assets grew steadily from 51,510 million US$ in March 2022 to 64,510 million US$ by September 2026. This expansion indicates a continuous increase in the company's resource base, providing a larger denominator for the ROA calculation and requiring higher earnings to maintain consistent profitability ratios.
- Net Earnings Volatility
- Net earnings displayed a pattern of high variance, with significant quarterly dips. Notable lows occurred in June 2022 (309 million US$), December 2024 (527 million US$), and June 2025 (342 million US$). These earnings troughs directly correlate with the sharpest declines in ROA, highlighting the sensitivity of the profitability ratio to quarterly earnings shocks.
- ROA Trend Analysis
- The ROA maintained a relatively strong range between 9.09% and 13.19% from March 2022 through December 2023, peaking at 13.19% in the final quarter of 2023. A downward trend was observed between March 2024 and June 2025, during which the ratio declined to a period low of 6.97%. Following this trough, a recovery phase began, with the ROA climbing steadily to reach 10.10% by September 2026.
- Profitability Efficiency Insights
- The divergence between the steadily increasing asset base and the volatile net earnings suggests that asset growth occasionally outpaced earnings growth. The recovery observed in the final four quarters indicates an improvement in the company's ability to generate profit from its expanded asset base, effectively returning the ROA to levels seen in the 2022-2023 period.
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