Lockheed Martin Stock Earnings Reports

Lockheed Martin reported strong Q3 2025 results driven by broad wins across its business areas and record backlog. Management highlighted major contract awards including a $9.8B PAC‑3 multi‑year production, $9.5B JASSM/LRASM lot, a $10.9B CH‑53K multi‑year for Sikorsky, and post‑quarter definitization of F‑35 Lots 18‑19 adding ~$11B and 151 aircraft to backlog. Q3 sales were $18.6B (up 9% YoY; ~5% normalized excluding prior Lot timing), segment operating profit rose 9% with 10.9% margins, and EPS was $6.95. Free cash flow in the quarter was ~$3.3B (YTD >$4.1B) and management generated strong cash returns (dividend increased 5%; share repurchase authorization raised). Company tightened 2025 guidance: sales $74.25B–$74.75B, segment operating profit $6.675B–$6.725B (9% midpoint margin), EPS $22.15–$22.35, and free cash flow targeted at $6.6B. Management emphasized operational execution, investment in capacity and corporate‑level R&D/prototyping (space‑based interceptors, autonomous Black Hawk, advanced F‑35 enhancements), and close supplier/government coordination to ramp munitions and missile production. Key risks noted include ongoing supply‑chain scaling, technical/program execution (some legacy program charges taken to clear risks), and pension contributions timing (management intends to pre‑fund parts of 2026 pension needs). Overall tone: confident in demand and backlog with focus on execution, cash generation, and shareholder returns.