Lockheed Martin

Priorities are consistent: reinvest in capacity and IR&D to meet demand surges (e.g., PAC‑3 ramp, digital factories, space), then return cash via dividends and repurchases.

In 2024 LMT generated $5.3 billion FCF after a $990 million pension contribution and returned $6.8 billion to shareholders; in 2025 YTD it continued sizable buybacks and lifted repurchase authorization to ~$9.1 billion, alongside a 5% dividend increase (23rd consecutive rise).

This is shareholder‑friendly, but returning >100% of FCF in some years reduces balance‑sheet optionality if execution risks materialize. M&A is disciplined post‑Aerojet block. We view capital deployment as good, with the caveat that program charge years argue for a bit more conservatism.