The following article looks at two growth names in the defense and space-tech arena—Lockheed Martin (LMT) and BlackSky Technology (BKSY)—and explains why each deserves a spot on a long-term watchlist based on backlog strength, product demand, dividend policy, shifting business models, and improving unit economics. It highlights the macro backdrop that favors defense suppliers and the operational moves these companies are making to turn that demand into durable revenue and profits. Read on for a neutral, fact-based look at the case for holding these two stocks over the long haul.
Lockheed Martin (NYSE: LMT) arrives at the conversation with a massive backlog that underpins revenue visibility for years. The company closed 2025 with a backlog around $194 billion, roughly two and a half times annual sales, which acts as a steadier foundation for growth than many firms can claim.
In 2025 Lockheed reported about $75 billion in sales, up roughly 6%, while GAAP earnings per share slipped modestly amid a higher tax rate and elevated interest and pension expenses. Management is guiding 2026 revenue toward a range around $77 billion to $80 billion and sees EPS climbing substantially at the midpoint, signaling an expectation that operational leverage should help restore profit growth.
Demand for Lockheed’s platforms remains high and tangible. The company produced record deliveries of F-35 fighter jets and PAC-3 interceptors in 2025, and it has been investing in applied artificial intelligence across products and services, including over-the-air updates for GPS and transport-layer satellites that improve field performance.
Lockheed’s systems are in active use by multiple militaries and in recent operations; platforms such as the F-35, F-22, RQ-170 Sentinel, and Sikorsky helicopters have been deployed in theater where advanced sensing and strike capability matter. That sort of ongoing utility converts defense budgets into steady aftermarket work and upgrade cycles.
On the production side, Lockheed is scaling capacity for critical interceptors and missile systems. Plans to move Patriot missile output from approximately 600 units a year toward a much higher run rate, and to significantly expand THAAD interceptor production, show how rising geopolitical tensions translate into higher unit orders and manufacturing activity.
Lockheed also returns capital to shareholders. The quarterly payout rose in 2025 and yields around the mid-single digits relative to current prices, and the company has a long track record of increasing its dividend annually. That combination of income plus backlog-supported growth creates a conservative case for long-term ownership.
BlackSky Technology (NYSE: BKSY) is a much smaller name but offers a different flavor of growth: real-time, high-frequency imagery paired with software analytics. Using low Earth orbit satellites and its Spectra platform, BlackSky can capture up to 15 images per day of a given location and layer automated AI analysis on top of that data.
The business grew backlog substantially in 2025 and has been gaining traction with customers who need near-real-time situational awareness for everything from tracking ships and aircraft to monitoring infrastructure and wildfires. That higher cadence of imagery, combined with analytics, is the firm’s competitive edge versus legacy imagery providers that refresh far less frequently.
Profitability has been a work in progress since BlackSky’s 2021 public listing, but the firm’s financials show clear improvement. Revenue in 2025 topped $106 million, loss per share narrowed, and the company posted positive adjusted EBITDA for a second straight year, with Q4 results dramatically smaller in loss than the prior-year period. Management forecasts meaningful revenue and adjusted EBITDA growth for 2026, which implies a concrete path toward sustained profitability if execution holds.
Crucially, BlackSky is shifting from a pure imagery seller to a higher-margin software-as-a-service model that delivers change-detection and actionable alerts within roughly 90 minutes of observation. That transition toward subscription revenues should lift gross margins and create more predictable recurring cash flows than one-off imagery sales.
Both companies benefit from a diverse customer mix beyond the U.S. government. Lockheed sells platforms and support to dozens of allied nations, while BlackSky serves customers across the U.S., Europe, and Asia. Geographic and customer diversification helps smooth revenue if any single government reduces discretionary purchases.
Investors weighing these two names should balance risk and reward: Lockheed offers scale, a huge contract backlog, and a long dividend record that together suggest lower volatility and steady returns. BlackSky presents higher-growth upside tied to SaaS monetization and faster imaging cadence, but it still requires careful monitoring of margin expansion and cash generation as it scales.
