Lockheed Martin Corp. (NYSE:LMT)

The financial performance indicators demonstrate fluctuating results over the five-year period. While generally exhibiting strong earnings, variations are apparent across all presented metrics. A peak in performance was observed in 2023, followed by a decline in 2024 and a stabilization in 2025.

EBITDA Trend

Earnings before interest, tax, depreciation, and amortization increased from US$9,483 million in 2021 to US$10,444 million in 2023, representing a compound annual growth rate of approximately 5.7%. However, EBITDA decreased to US$8,815 million in 2024 and remained relatively stable at US$8,727 million in 2025. This suggests a potential weakening of operational profitability in the latter years of the observed period.

Relationship between EBITDA and Other Earnings Measures

A consistent pattern exists where EBITDA exceeds EBIT, EBT, and net earnings in each year. This is expected, as EBITDA represents earnings before non-cash expenses (depreciation and amortization) and financing/tax effects. The difference between EBITDA and EBIT reflects the impact of depreciation and amortization, which remained relatively consistent as a percentage of EBITDA throughout the period.

EBITDA Growth Rate

The growth rate of EBITDA was most significant between 2021 and 2023. The decline in 2024 indicates a potential slowdown in the underlying business or increased cost pressures. The stabilization in 2025 suggests that the negative trend may have been arrested, but further investigation is needed to determine if this represents a sustained recovery.

Net Earnings Correlation

Net earnings generally follow the trend of EBITDA, although the magnitude of change is different. The correlation suggests that changes in operational performance, as reflected in EBITDA, ultimately impact the bottom line. The decrease in net earnings from 2023 to 2025 mirrors the decline in EBITDA, indicating a strong link between these two metrics.

In summary, the company experienced growth in key earnings metrics up to 2023, followed by a contraction in 2024 and stabilization in 2025. The EBITDA trend provides a valuable indicator of operational performance, and its recent fluctuations warrant further scrutiny.

The Enterprise Value to EBITDA ratio exhibited fluctuating behavior over the five-year period. Initial values indicated a relatively high valuation, followed by a period of decline and subsequent increase.

Enterprise Value (EV)

Enterprise Value increased from US$113,509 million in 2021 to US$130,388 million in 2022, representing a substantial rise. A decrease was then observed in 2023, falling to US$122,260 million, followed by a modest increase to US$125,464 million in 2024. The most significant increase occurred between 2024 and 2025, with Enterprise Value reaching US$160,806 million.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA experienced a decline from US$9,483 million in 2021 to US$8,707 million in 2022. A recovery was noted in 2023, with EBITDA rising to US$10,444 million. However, EBITDA decreased again in 2024 to US$8,815 million, and continued to decline slightly in 2025, reaching US$8,727 million.

EV/EBITDA Ratio

The EV/EBITDA ratio began at 11.97 in 2021, increasing to 14.98 in 2022. It then decreased to 11.71 in 2023, before rising again to 14.23 in 2024. The most pronounced change occurred in 2025, with the ratio increasing substantially to 18.43. This indicates a growing premium placed on each dollar of EBITDA by the market.

The observed trend suggests that while Enterprise Value generally increased over the period, the growth in Enterprise Value outpaced the growth in EBITDA, particularly in 2025. This resulted in a higher EV/EBITDA multiple, potentially indicating increased investor optimism or a shift in market perception regarding future growth prospects. The fluctuations in EBITDA also contributed to the variability in the ratio.