LMT Gross Margin Analysis

Gross margin measures the percentage of revenue left after subtracting the direct costs of producing goods — a 12.2% margin means only 12 cents of every dollar in sales is retained from manufacturing costs.

That figure is far below the sector median of 44.6%, placing LMT in the 5th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change is a +6.1% improvement from the prior quarter’s 11.5%. While the recent uptick is positive, the absolute level remains very low, implying weak pricing power or high input costs relative to competitors — a risk for sustained profitability. This combination of a low margin with a modest near-term improvement does not offset the structural disadvantage versus the sector. The metric strongly contradicts an optimistic stance and directly supports the overall CAUTIOUS verdict.

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