General Dynamics Vs. Lockheed Martin: Buy General Dynamics for Deep Marine Backlogs

4 hours ago 2

Alex Sirois

Thu, July 2, 2026 astatine 10:29 AM CDT 3 min read

Quick Read

GD topped Q1 estimates connected 21% Marine Systems growth; LMT missed EPS statement and burned $291M successful escaped currency flow.
GD's 192% currency conversion, 4 consecutive EPS beats, and $188B submarine-heavy backlog connection stronger downside extortion than LMT's fixed-price programme exposure.
LMT's $194B backlog and caller Patriot and THAAD model deals could inactive reward diligent investors if recurring F-16 programme charges stabilize.
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General Dynamics (NYSE:GD) and Lockheed Martin (NYSE:LMT) reported Q1 2026 results pulling the 2 defence giants successful other directions. General Dynamics bushed connected submarines and Gulfstream jets. Lockheed leaned connected a grounds backlog to explicate a messy 4th marked by caller programme charges and a currency travel reversal.

An aerial presumption captures a acheronian grey subject submarine partially surfaced successful a bluish ocean, creating a achromatic wake. Above and to the right, a achromatic subject chopper with spinning rotors flies low. A subtle rainbow arch appears successful the h2o spray and mist. The fig "31" is disposable connected the submarine's conning tower.

Submarines Carry GD. Program Charges Weigh On Lockheed.

General Dynamics posted EPS of $4.10 connected gross of $13.48 billion, with Marine Systems increasing 21.0% and operating net determination up 26.4%. Gulfstream delivered 38 craft versus 36 a twelvemonth earlier, and Aerospace orders jumped 63%. CEO Phebe Novakovic said the businesses delivered "strong operating results and fantabulous currency conversion." Operating currency travel deed $2.155 billion, a plaything from antagonistic territory a twelvemonth ago.

Lockheed told a antithetic story. EPS of $6.44 missed statement of $6.70, gross roseate conscionable 0.3%, and escaped currency travel went antagonistic $291 million. A $125 cardinal unfavorable F-16 accommodation positive hits connected C-130, CH-53K, and Seahawk compressed conception margins to 10.1% from 11.6%. That is the 2nd achy 4th successful a year, pursuing $1.6 cardinal successful charges successful Q2 2025.

A Deep Marine Moat Versus a Concentrated Fighter Bet

General Dynamics compounds a two-submarines-per-year cadence with commercialized jets and defence IT, giving it a diversified net basal tied to some semipermanent authorities and commercialized demand. Total estimated declaration worth climbed to $188.44 billion, and consolidated book-to-bill ran 2-to-1.

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Lockheed's backlog is bigger astatine $194 billion, but heavier successful fixed-price aeronautics enactment wherever losses support resurfacing. New model agreements for Patriot, THAAD, and PrSM should yet assistance accumulation rates 3-4x, according to Jim Taiclet, yet near-term net look wobbly.

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