Lockheed Martin: the aftermarket is the business and it is undervalued

The mechanism is the installed base. Equipment sold years ago generates parts and service revenue at higher margin and lower cyclicality, so the profit mix is far less cyclical than the revenue mix. Segment reporting carries it. Aftermarket contributed the majority of segment operating profit while representing a minority of revenue, and it grew in a year when equipment did not. The position: long on Lockheed Martin, entry locked at publication and the exit dated rather than open-ended. The target is stated in the call block above and the horizon with it. Sized to the catalyst rather than to conviction, with the invalidation written into the kill-switch card instead of left implicit. What breaks this is a supply chain that resolves faster than expected, which would convert the backlog on schedule and make the conversion argument wrong.