Lockheed MartinLIM:LMT 73 Pretax Margin % is 9.84% as of Mar. 2026, which is 8% below its 10-year median of 10.68. GuruFocus rates LIM:LMT with a GF Score™ of 73/100 and a GF Value™ of $587.42 (Fairly Valued). The stock has 3 warning signs investors should review. Among 347 Aerospace & Defense companies, Lockheed Martin ranks better than 55.04% on this metric.
The historical rank and industry rank for Lockheed Martin's Pretax Margin % or its related term are showing as below:
LIM:LMT'
s Pretax Margin % Range Over the Past 10 Years
Min: 7.54 Med: 10.68 Max: 12.59
Current: 7.54
LIM:LMT's Pretax Margin % is ranked better than 55.04% of 347
companies
in the Aerospace & Defense industry
Industry Median: 6.17
vs LIM:LMT: 7.54
Lockheed Martin (LIM:LMT) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Lockheed Martin Pretax Margin % Related Terms
Lockheed Martin Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Lockheed Martin's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LIM:LMT vs HWM, GD, RKLB: Pretax Margin % Comparison
For the Aerospace & Defense subindustry, Lockheed Martin's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lockheed Martin Pretax Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Lockheed Martin's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lockheed Martin's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lockheed Martin (LIM:LMT) has a Pretax Margin % of 9.84% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lockheed Martin and its competitors. This is near median its historical median of 10.68. Over the past decade, Lockheed Martin's Pretax Margin % has ranged from 7.54 to 12.59. According to the industry distribution chart, Lockheed Martin ranks #156 out of 347 companies in the Aerospace & Defense industry, placing it in the top 45%.
Is Lockheed Martin's Pretax Margin % too high?
Lockheed Martin's current Pretax Margin % of 9.84% is near median its 10-year median of 10.68. Over the past 10 years, this metric has ranged from a low of 7.54 to a high of 12.59. The Aerospace & Defense industry median Pretax Margin % is 6.17. Lockheed Martin's value of 9.84% is 59.5% above this industry median. Based on the distribution chart, Lockheed Martin ranks #156 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Lockheed Martin has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lockheed Martin's Pretax Margin % compare to HWM and GD?
According to the Aerospace & Defense industry distribution chart, Lockheed Martin ranks #156 out of 347 companies for Pretax Margin %. This puts Lockheed Martin in the upper half of its industry. The industry median Pretax Margin % is 6.17. Lockheed Martin's value of 9.84% is 59.5% above this benchmark. Historically, Lockheed Martin's own Pretax Margin % has ranged from 7.54 to 12.59 over the past decade. While the company's 10-year median is 10.68 vs. the industry median of 6.17, Lockheed Martin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Aerospace & Defense company?
The median Pretax Margin % among Aerospace & Defense companies is 6.17, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lockheed Martin's current Pretax Margin % of 9.84% is 59.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lockheed Martin and its competitors. For the Aerospace & Defense industry, the median Pretax Margin % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lockheed Martin's current Pretax Margin % is 9.84%, which is near median its own 10-year median of 10.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lockheed Martin stock overvalued right now?
Based on GuruFocus' analysis, Lockheed Martin (LIM:LMT) is currently considered Fairly Valued. The stock's GF Value™ is $587.42, compared to a current price of $541.22 — trading 7.9% below its estimated fair value. The current Pretax Margin % is 9.84%, which is near median its 10-year median of 10.68 and 59.5% above the Aerospace & Defense industry median of 6.17. Lockheed Martin's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Lockheed Martin (LIM:LMT), the current Pretax Margin % is 9.84% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lockheed Martin (LIM:LMT) Overvalued in 2026?
Based on GuruFocus' analysis, Lockheed Martin stock appears to be undervalued.
The current stock price of $541.22 is trading 7.9% below its estimated GF Value™ of $587.42.
GuruFocus considers Lockheed Martin to be Fairly Valued.
Key valuation signals for LIM:LMT:
Pretax Margin %: 9.84% (near median its 10-year median of 10.68)
GF Value™: $587.42 vs. price of $541.22 (7.9% below fair value)
Industry Position: 59.5% above the Aerospace & Defense median (#156 of 347)
No single metric tells the full story. See the LIM:LMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Aeronautics is Lockheed's largest segment, which derives upward of two-thirds of its revenue from the F-35. Lockheed's remaining segments are rotary and mission systems, mainly encompassing the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.
73GF Score
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