LMT Stock Today, January 01: $328.5M Taiwan IRST Deal Boosts Backlog
LMT stock is in focus today after the Pentagon issued a $328.5 million Foreign Military Sales award for Taiwan’s IRST Legion pods, with $157.3 million obligated now. Shares of LMT last traded at $483.67, down 0.89% on the day. The award supports sustained demand tied to Taiwan and pushes the company’s backlog into 2031. We break down what the Lockheed Martin contract means for valuation, cash flows, technicals, and the near-term setup for U.S. defense investors.
Key details of the Taiwan IRST award
The U.S. Air Force issued an undefinitized FMS action totaling $328.5 million for Taiwan’s Infrared Search and Track Legion pods and related hardware. Of that, $157.3 million is obligated immediately, allowing work to begin while terms are finalized. The award supports a core sensor capability for target detection without radar emissions. See the Pentagon confirmation here source.
Management benefits from earlier funding flow on undefinitized orders and later definitization milestones. The action extends delivery visibility into 2031, which is supportive for planning, supplier commitments, and program staffing. The award follows recent Air Force contracting actions tied to the Legion pod line source. For LMT stock, longer runway and funded starts are near-term positives for sentiment.
The Foreign Military Sales process runs through the U.S. government with congressional oversight and delivery managed by the Pentagon. Taiwan-directed awards signal ongoing support for regional deterrence. For investors, the pipeline matters more than single headlines. Continued FMS flow tied to sensors and sustainment can cushion cycles. LMT stock typically tracks backlog health, funding momentum, and execution on delivery schedules.
How the contract shapes valuation
A funded start improves near-term cash conversion cadence. Lockheed Martin’s free cash flow per share is 19.81, with a 2.76% dividend yield and a 74% payout ratio. Interest coverage sits at 5.58x and the current ratio is 1.13. While leverage is notable at 3.59 debt-to-equity, steady FMS receipts and milestone payments support liquidity. LMT stock often benefits when cash visibility improves.
At $483.67, the shares trade at 26.96x TTM EPS of 17.94 and about 1.54x sales. Enterprise value to EBITDA is 17.16. Street targets show a $533.27 consensus, $543 median, and $630 high, with 3 Buy and 11 Hold ratings (consensus: Hold). If the award accelerates bookings, LMT stock gains a modest valuation support without removing execution risks.
Baseline projections point to $479.43 over one month, $508.67 over one year, $565.97 in 3 years, and $623.25 in 5 years, extending to $708.97 in 7 years. These paths reflect historical patterns, sector comps, and current multiples. They are not guarantees. For positioning, we view the FMS action as supportive to fair value drift, while broader market and budget news still drive LMT stock near term.
LMT stock technical picture today
RSI at 57.25 sits in neutral territory. ADX at 13.19 indicates no strong trend. MACD is positive (5.21 vs 3.50 signal) with a 1.72 histogram, suggesting gentle upside momentum. Stochastic %K at 85.29 and Williams %R at -27.27 flag near-term overbought risk. Overall, momentum is constructive but not decisive for LMT stock.
The last price is $483.67, within a $483.53 to $489.68 intraday range. Bollinger Bands span 449.02 to 498.84 with a 473.93 midline. Keltner Channels center at 476.88 with an upper band near 493.78. ATR of 8.45 implies typical daily swings around that size. LMT stock faces nearby resistance near 494 to 499, with support around 474 and 449.
Volume of 489,803 trails the 1,317,679 average, which can mute breakouts and raise whipsaw risk. OBV is 2,538,045 and MFI reads 57.22, both neutral to slightly positive. In this setup, confirmation matters. For LMT stock, sustained closes above the Keltner upper band and rising volume would better confirm momentum follow-through.
What to watch next
Watch for definitization of the action, delivery schedules, and any follow-on lots. Continued FMS notifications to Congress for Taiwan sensor and sustainment needs would reinforce the 2031 delivery runway. For LMT stock, cadence of awards can matter more than size alone, as it helps smooth cash receipts and supports a stable supply chain plan.
The next earnings announcement is scheduled for 2026-01-27 13:30 UTC. Focus on backlog additions, book-to-bill, free cash flow guidance, and capital returns. TTM EPS stands at 17.94. Updates on the IRST production pace, supplier readiness, and inflation pass-through will be key for LMT stock into Q1.
Federal budget timing, supply chain constraints, and pricing pressure can affect margins. Net margin is 5.73% and price-to-book is elevated at 18.15. Leverage at 3.59 debt-to-equity and interest coverage at 5.58x require steady cash generation. Any delay in definitization or export clearances could weigh on LMT stock short term.
Final Thoughts
The new $328.5 million Taiwan IRST award, with $157.3 million obligated now, adds funded work and stretches delivery visibility to 2031. That supports backlog quality and cash timing. Valuation sits near 26.96x earnings with a 2.76% dividend yield and Street targets around $533 to $543. Technically, momentum is positive but unconfirmed on light volume, with resistance near $494 to $499. For investors, watch definitization, additional FMS actions, and the January 27 earnings call for backlog and cash flow color. A measured approach makes sense: scale on pullbacks toward mid-band levels and reassess on volume-backed breakouts. This content is for informational purposes only and is not investment advice.
FAQs
Yes. The $328.5 million FMS action with $157.3 million obligated now adds funded backlog and improves near-term cash visibility. While not transformational, it supports sentiment, extends deliveries to 2031, and helps stabilize program staffing. For LMT stock, steady orders and clearer funding can aid multiple support and reduce near-term volatility.
It allows work to start before all terms are finalized. The government obligates an initial amount, then completes pricing and scope later. This accelerates schedules when timing matters. For LMT stock, undefinitized actions can pull forward cash receipts and smooth production ramps, though final terms and margins are set at definitization.
The award does not change valuation math alone, but it supports backlog and cash timing. Shares trade at 26.96x TTM EPS with a 2.76% dividend yield and a roughly 74% payout ratio. Consistent FMS flow can help sustain free cash flow that funds dividends and buybacks without stretching leverage.
Watch $494 to $499 as nearby resistance and $474 to $449 as support areas from Keltner and Bollinger signals. ATR near 8.45 frames daily swings. The next earnings call is on 2026-01-27. Updates on definitization and added Taiwan-related orders will shape near-term momentum and positioning.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
