Lockheed Martin Faces Downgrade Amid Significant Profit Drop and Challenges

Lockheed Martin, a prominent player in the aerospace and defense sector, has recently faced a series of challenges that have affected its stock performance and analyst ratings. Truist Financial downgraded the company to a 'hold' status, citing mixed results and a price target of $440, indicating limited upside potential.

The firm reported a significant 65% drop in operating profit for the second quarter of 2025, prompting a downward revision in full-year earnings guidance. Contributing factors include losses from legacy programs and contract challenges.

Despite these setbacks, the company benefits from a bolstered geopolitical position due to increased weapons sales, particularly related to the Ukraine conflict. However, mounting program risks and financial uncertainties suggest a more complex path ahead for Lockheed Martin.