Boeing vs Lockheed Martin: Which Aerospace Giant Has the Edge

The aerospace market is recovering from a complex situation, leaving investors to choose between two major players: Boeing Co and Lockheed Martin Corp. Both companies serve essential roles in the industry, but they cater to different needs. Boeing serves both commercial and defense markets, while Lockheed Martin focuses on security and high-tech defense systems.

Boeing's revenue reached $89.5 billion in FY 2025, a 35% growth compared to the previous year. The company achieved net income of approximately $2.2 billion, resulting in a net margin of 2.5%. However, its debt-to-equity ratio is high at 10.0x, and free cash flow was negative $1.9 billion.

Lockheed Martin generated revenue of roughly $75.1 billion in FY 2025, a 6% increase over the prior year. The company reported net income just over $5 billion, translating to a net margin of about 7%. Its debt-to-equity ratio is lower at 3.2x, and free cash flow was positive $6.9 billion.

When comparing the two companies, Lockheed Martin appears cheaper on an earnings basis, while Boeing has a higher forward P/E ratio. Despite this, Boeing is still working to recover from safety and supply chain issues, which will impact its net income in 2026. In contrast, Lockheed Martin's sales are anticipated to grow about 5% to $79.1 billion in the current fiscal year.