GE Aerospace or Lockheed Martin: Which Aerospace and Defense Stock Is a Better Buy for 2026?

2 hours ago 1

Neha Chamaria, The Motley Fool

Sat, July 4, 2026 astatine 12:06 PM CDT 6 min read

GE Aerospace (NYSE:GE) focuses connected pitchy engines and aviation systems for commercialized and subject use. Lockheed Martin (NYSE:LMT) is simply a diversified defence person providing ngo solutions and precocious weaponry.

Both companies payment from rising planetary information concerns and aviation demand, but they disagree importantly successful their maturation trajectories and successful however the marketplace values their aboriginal earnings. Choosing betwixt GE Aerospace and Lockheed Martin depends mostly connected whether you similar commercialized aviation momentum oregon a stable, dividend-paying axenic defence play.

The lawsuit for GE Aerospace

GE Aerospace designs and manufactures pitchy and turboprop engines and integrated systems for commercial, military, business, and wide aviation aircraft. It serves customers successful astir 120 countries and maintains a beardown beingness successful the planetary propulsion market.

In FY 2025, gross reached astir $45.9 billion, up 18.5% twelvemonth implicit year. The institution reported nett income of astir $8.7 cardinal for the aforesaid period. The nett borderline of 19% was a notable betterment from the 16.9% reported successful FY 2024.

As of its December 2025 equilibrium sheet, the debt-to-equity ratio was astir 1.1x, which compares full indebtedness to shareholders' equity. The existent ratio stood astatine astir 1.0x, indicating the institution has capable short-term assets to screen its contiguous fiscal obligations. Free currency travel (FCF) for FY 2025 was adjacent to $7.3 billion, which represents the currency remaining aft the concern pays for its superior expenditures.

The lawsuit for Lockheed Martin

Lockheed Martin is simply a planetary titan among defense stocks, focusing connected precocious exertion and ngo solutions. It is heavy babelike connected the U.S. government, which accounted for astir 72% of its 2025 consolidated sales. The F-35 craft programme unsocial represents adjacent to 27% of full sales.

For FY 2025, gross reached astir $75.1 billion, reflecting 5.7% implicit the anterior year. Net income for the play was adjacent to $5 billion, down astir 6% from the erstwhile year. The institution achieved a nett borderline of astir 6.7%, which was little than the 7.5% recorded successful FY 2024.

As of the December 2025 equilibrium sheet, the debt-to-equity ratio was astir 3.2x, indicating that full indebtedness was much than triple shareholder equity. The existent ratio was adjacent to 1.1x, suggesting the institution has somewhat much successful short-term assets than short-term liabilities. FCF was astir $6.9 billion, representing the currency remaining aft spending connected superior equipment.

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