Lockheed Martin Stock Up 40% on $194B Backlog, Hormuz Risk Clouds $700 Target
Lockheed Martin’s stock climbed about 40%, peaking at $676.70 on March 2 before retracing to around $610 and trading near $624. A $194 billion backlog (2.5× revenue) and expanded interceptor output drive fundamentals, while Strait of Hormuz risks keep a $700 re-rating unpriced.
1. Stock Performance
Lockheed Martin’s share price rose roughly 40% over the past year, closing at an all-time high of $676.70 on March 2 before retracing to near $610 and trading around $624 by late March.
2. Backlog Strength
The company ended 2025 with a record $194 billion backlog, equivalent to about 2.5 times annual revenue, and secured new seven-year framework contracts enabling THAAD production to jump from 96 to 400 units and PAC-3 MSE from 600 to 2,000 units annually.
3. Geopolitical Premium
Heightened demand from the Iran conflict depleted an estimated 25% of U.S. THAAD interceptors within 12 days, prompting the Pentagon’s $200 billion supplemental funding request that adds to the FY2026 defense budget.
4. Strait of Hormuz Impact
A prolonged Strait of Hormuz closure could send Brent crude above $120 per barrel, creating an energy supply shock that would sustain replenishment demand and is not fully priced into shares for a re-rating beyond $700.