Iran Peace Deal: What Does It Mean for Defense Stocks Like Lockheed Martin?
A ceasing of hostilities won't erase defense demand.
Iran Peace Deal: What Does It Mean for Defense Stocks Like Lockheed Martin?
Overview
The general assumption is that a peace deal between the United States and Iran will hurt defense stocks. But it's not that simple. In fact, it's not really about whether the fighting stops now. It's about whether governments will continue spending on defense over the next decade.
Lockheed Martin (NYSE: LMT) has long benefited from demand for defense systems during peacetime and wartime. Over the past 40 years, shares of Lockheed Martin have climbed 2,500%. And while there hasn't been a complete lack of military conflict over the last four decades, the military demands have varied. Yet that has never changed the long-term trajectory of the stock.
Details
In 2025, the company ended the year with a record backlog of approximately $194 billion, giving it years of contracted work already in hand. Lockheed also generated $75 billion in revenue during 2025, up about 6% from the prior year. Management expects sales to climb to between $77.5 billion and $80 billion in 2026.
Source
Originally published at www.fool.com.
