Canada’s New Defense Industrial Strategy Could Be A Game Changer For Lockheed Martin (LMT)

Simply Wall St

Thu, February 19, 2026 at 2:11 PM GMT+9 3 min read

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Earlier this month, Canada released its 58-page Defense Industrial Strategy outlining plans to strengthen national defense and weapons procurement, a policy shift with clear implications for major contractors such as Lockheed Martin.

This comprehensive blueprint signals Canada’s intention to prioritize advanced military capabilities, potentially expanding future procurement opportunities for defense suppliers aligned with its evolving security objectives.

We’ll now examine how Canada’s new Defense Industrial Strategy could influence Lockheed Martin’s existing investment narrative and future risk‑reward balance.

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Lockheed Martin Investment Narrative Recap

To own Lockheed Martin, you need to believe defense spending on advanced platforms and systems remains resilient, and that the company can manage cost, execution, and regulatory pressures. Canada’s new Defense Industrial Strategy may incrementally support the demand side, but the most important near term catalyst likely remains upcoming earnings and contract updates, while the biggest risk still centers on cost overruns and charges on legacy and classified programs that could weigh on profitability.

Among recent developments, the continued dividend at US$3.45 per share for Q1 2026 stands out, as it reinforces management’s confidence in cash generation despite prior large charges on fixed price programs. For investors watching catalysts, the combination of steady capital returns with potential procurement opportunities under Canada’s updated defense policy creates a useful backdrop ahead of future earnings reports and any updates on major programs.

Yet, against this constructive backdrop, investors should be aware that cost overruns and further reach forward losses on complex fixed price contracts could…

Read the full narrative on Lockheed Martin (it’s free!)

Lockheed Martin’s narrative projects $81.0 billion revenue and $7.1 billion earnings by 2028.

Uncover how Lockheed Martin’s forecasts yield a $652.53 fair value, in line with its current price.

Exploring Other Perspectives

LMT 1-Year Stock Price Chart

Some of the lowest ranked analysts were already assuming only about 3.7 percent annual revenue growth to roughly US$80.1 billion by 2028 and a PE closer to 15.6x, which is a much harsher view than the baseline narrative and shows how differently you and others might weigh Canada’s new defense plan against Lockheed’s concentration in big programs.

Explore 20 other fair value estimates on Lockheed Martin - why the stock might be worth 39% less than the current price!

Story Continues  

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

A great starting point for your Lockheed Martin research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Our free Lockheed Martin research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lockheed Martin's overall financial health at a glance.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include LMT.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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