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Brendan Coffey, The Motley Fool
Fri, June 19, 2026 astatine 10:54 AM CDT 5 min read
Choosing betwixt the world's largest defence contractors involves weighing dependable authorities contracts against commercialized aerospace recovery. You indispensable determine whether Lockheed Martin (NYSE:LMT) oregon RTX (NYSE:RTX) offers amended worth today.
Lockheed Martin remains a premier prime for pure-play defence exposure, portion RTX provides a much diversified premix of subject and commercialized aerospace technologies. Both companies are navigating a analyzable scenery of shifting geopolitical priorities and proviso concatenation hurdles successful 2026.
The lawsuit for Lockheed Martin
Lockheed Martin designs defence technologies crossed aeronautics, missiles, and space. It serves arsenic a monolithic subordinate among defense stocks, with a portfolio serving the U.S. Department of Defense and different national agencies. The U.S. authorities accounted for astir 72% of 2025 sales, and lawsuit attraction similar this adds a furniture of hazard to the business.
In FY 2025, gross reached astir $75.1 billion, representing maturation of 5.7% implicit the erstwhile year. This resulted successful nett income of conscionable implicit $5 billion. The F-35 programme remains the superior gross driver, contributing astir 27% of full income and supporting planetary partnerships.
As of its December 2025 equilibrium sheet, the debt-to-equity ratio was astir 3.2x. This ratio measures full indebtedness comparative to shareholders' equity, indicating however overmuch a institution relies connected borrowed money. Free currency travel reached $6.9 cardinal successful the year. The existent ratio, which compares assets to upcoming bills, is astir 2.8x.
The lawsuit for RTX Corp.
RTX operates done 3 main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. It serves some commercialized and authorities aviation markets, providing parts for manufacturers similar Airbus and Boeing Co (NYSE:BA). This diversification makes it a unsocial subordinate due to the fact that it is little reliant connected immoderate azygous authorities programme compared to its peers.
For FY 2025, gross reached $88.6 billion, representing astir 9.8% maturation implicit the anterior year. This helped the institution make nett income of astir $6.7 billion. International customers accounted for adjacent to 47% of 2025 nett sales, demonstrating planetary scope beyond home borders.
The December 2025 equilibrium expanse showed a debt-to-equity ratio of astir 0.6x, astir the aforesaid ratio arsenic today, indicating a equilibrium betwixt short-term assets and liabilities. Free currency travel for 2025 was $7.94 billion, representing the currency a institution generates aft covering its operating costs and superior expenditures.
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