LMT vs TXT: How Lockheed Martin and Textron Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: TXT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. LMT and TXT share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined LMT and TXT exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Lockheed Martin is the largest defense contractor in the world, generating the vast majority of its revenue from the US government and allied militaries. It is organized into four segments: Aeronautics (home of the F-35 Lightning II, F-22, and C-130, the largest segment), Rotary and Mission Systems (Sikorsky helicopters, combat systems, radar, and sensors), Missiles and Fire Control (precision missiles, HIMARS, PAC-3 interceptors, and hypersonics), and Space (satellites, missile-defense systems, and strategic and hypersonic programs). Lockheed designs, builds, and sustains some of the most advanced and mission-critical weapons systems in the world, including the F-35, its single largest program, which generates long-tail revenue from production, upgrades, and decades of sustainment. The company makes money under long-term government contracts, with a large multi-year backlog that provides revenue visibility. It pursues hypersonics, missile defense, and space as growth areas. As a flagship defense name, Lockheed is a steady cash generator that returns substantial capital to shareholders. Headquartered in Bethesda, Maryland.

Full LMT guide

Textron is a diversified industrial conglomerate best known for aircraft. Its largest businesses are Textron Aviation, which makes Cessna and Beechcraft business jets and turboprops, and Bell, which makes military and commercial helicopters and tiltrotor aircraft. Bell builds the V-22 Osprey and won the US Army's Future Long-Range Assault Aircraft (FLRAA) program with the V-280 Valor tiltrotor, a multi-decade defense award. Textron also owns Textron Systems (defense electronics, drones, weapons), Industrial (Kautex fuel systems, specialized vehicles like golf carts and Arctic Cat), and a financing arm. The company sells to private and corporate aircraft buyers, governments, and industrial customers worldwide. Headquartered in Providence, Rhode Island, Textron is a long-established defense and aerospace prime contractor whose fortunes track business-jet demand, defense budgets, and program execution. It blends cyclical commercial aviation exposure with steadier multi-year government contracts.

Full TXT guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• LMT drivers: The F-35 franchise; Rising defense budgets and munitions demand.
• TXT drivers: FLRAA tiltrotor program; Business jet cycle and Aviation backlog.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Lockheed depends overwhelmingly on US and allied defense budgets, so spending cuts, continuing resolutions, shutdowns, or shifting priorities directly threaten revenue. For TXT, textron's business-jet segment is cyclical and tied to corporate confidence and high-end consumer spending, so a recession can sharply reduce orders and deliveries.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick LMT if you believe its drivers more; TXT if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the LMT and TXT guides.

LMT. Lockheed trades at a defense-sector multiple supported by an enormous backlog, predictable government revenue, and reliable free cash flow that funds a growing dividend and large buybacks. The valuation reflects the durability of defense spending and the F-35 annuity, offset by program-concentration risk and occasional charges on fixed-price contracts. As a defensive cash compounder, Lockheed is often valued on free cash flow and backlog visibility as much as headline earnings.

TXT. Textron trades at an industrial multiple that reflects a blend of cyclical business-jet exposure and steadier defense revenue. The valuation embeds both the FLRAA ramp optionality and the risk of a business-jet downturn. Consistent buybacks support per-share earnings, while the conglomerate structure means the parts are sometimes valued below pure-play peers.

Headline figures (approximate, early 2026): LMT shows revenue (ttm) ~$72 billion, operating margin ~11-12%, net income (ttm) ~$5-6 billion, p/e (ttm) ~17x; TXT shows revenue (ttm) ~$14 billion, operating margin ~9-10%, aviation backlog multi-billion (Citation and Beechcraft orders), eps (ttm) ~$5.50-6.00 adjusted.

LMT and TXT are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined LMT and TXT exposure against your real portfolio. It is not an investment adviser.