Lockheed Martin Corp Stock Plummets Amid Pentagon Spending Cuts

On June 11, 2025, shares of Lockheed Martin Corp (NYSE: LMT) experienced a significant decline as investors reacted to news of reduced Pentagon spending on the company’s flagship F-35 fighter jets. The downturn in Lockheed Martin’s stock was highlighted by multiple financial news sources, reflecting concerns over the company’s future revenue streams.

Pentagon Cuts F-35 Orders

The primary catalyst for the stock’s decline was the Pentagon’s decision to slash its request for F-35 jets by half. Bloomberg News and other financial outlets reported that the Air Force had reduced its order from 48 jets to just 24 for the year. This decision represents a substantial setback for Lockheed Martin, the leading U.S. defense contractor, as the F-35 program is a cornerstone of its business.

Market Reaction

The news led to a sharp drop in Lockheed Martin’s stock price. On the New York Stock Exchange, the shares fell to a low of $445.59, marking a significant retreat from its 52-week high of $618.95, achieved on October 20, 2024. The company’s market capitalization, standing at $112 billion, reflects its status as a major player in the aerospace and defense industry, but the recent developments have raised questions about its near-term growth prospects.

Financial Overview

As of June 9, 2025, Lockheed Martin’s closing price was $476.9, with a price-to-earnings ratio of 20.65. The company operates across various sectors, including space, telecommunications, electronics, and aeronautics, positioning itself as a global security leader. However, the recent news has cast a shadow over its financial outlook.

Broader Market Context

Despite Lockheed Martin’s struggles, the broader market showed resilience. The S&P 500 index rose by 0.12% on the same day, indicating a mixed sentiment among investors. While Lockheed Martin faced challenges, other sectors and companies were performing well, suggesting that the market’s overall health remained robust.

Conclusion

Lockheed Martin’s stock decline underscores the sensitivity of defense contractors to government spending decisions. The reduction in F-35 orders highlights the challenges the company faces in maintaining its revenue growth amidst changing defense priorities. Investors and stakeholders will be closely monitoring Lockheed Martin’s strategic responses to these developments as they unfold.