Is LMT (Lockheed Martin Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LMT is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (18.09% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (3.44% vs ≤33% threshold).

Lockheed Martin Corporation is a global leader in the aerospace and defense industry, specializing in the research, design, and manufacturing of advanced technology systems. Its core operations span four segments, producing highly recognizable assets like combat aircraft, tactical missiles, and space systems for military and commercial use worldwide. For Muslim investors utilizing HalalStocks.co.uk, Lockheed Martin currently screens as Halal, passing all four AAOIFI criteria. The company's primary business activities in defense and aerospace are permissible, and it successfully meets all financial ratio requirements, meaning everyday investors can confidently consider it for their halal portfolios. From an Islamic finance perspective, Lockheed Martin demonstrates strong financial discipline. Its debt-to-market capitalization sits at a compliant 18.1%, while its cash and interest-bearing securities represent just 3.4% of its market cap, ensuring minimal exposure to conventional interest-based structures. Notably, the company derives 0.00% of its revenue from impermissible interest income. While defense contracting is generally permissible, some Muslim investors may choose to personally evaluate the ethical implications of weapons manufacturing based on their individual values. However, strictly from an AAOIFI compliance standpoint, investors should simply continue to monitor the company's debt levels to ensure they remain below the 33% threshold in future quarters. Lockheed Martin Corporation operates in the Industrials sector under the Aerospace & Defense industry and is headquartered in Bethesda, MD, US. The company is led by CEO James D. Taiclet Jr. and employs approximately 121,000 people.

LMT was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LMT passed 4 of these 4 screens.

LMT has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

LMT was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.