#United States #Lockheed Martin #Bethesda, Maryland #LMT #2025 financials

Lockheed Martin's Financial Performance in 2025

Lockheed Martin Corporation, a leading global defense technology company, has announced its financial results for the fourth quarter and entire year of 2025, showcasing an impressive growth trajectory. With total sales reaching $75.0 billion, a 6% increase from $71.0 billion in 2024, the corporation solidified its position in the defense sector.

Fourth Quarter Results

In the fourth quarter of 2025, Lockheed Martin's sales amounted to $20.3 billion, up from $18.6 billion in Q4 2024. Net earnings also saw a significant boost, climbing to $1.3 billion or $5.80 per share, compared to $527 million or $2.22 per share in the same quarter last year. This growth illustrates the strong demand for Lockheed Martin's defense capabilities, further reinforced by an operational cash flow of $3.2 billion.

Notable Highlights

• - Cash from Operations: Totaling $8.6 billion for the year, a substantial increase compared to $6.97 billion in 2024.
• - Free Cash Flow: Recorded at $6.9 billion in 2025, surpassing previous projections despite significant pension contributions.
• - Backlog: Lockheed Martin reported a record backlog of $194 billion at the end of the year, a strong indicator of future revenue potential.

CEO Insights

Chairman and CEO Jim Taiclet expressed enthusiasm regarding the company's performance, citing unprecedented demand for its defense programs as a key driver for growth. In light of recent military engagements, Lockheed Martin's systems such as the F-35 and RQ-170 have proven their effectiveness on the battlefield. Taiclet asserted the company’s commitment to enhancing its production capabilities and underpinning technological advancements, indicative of an evolving focus on meeting defense industry requirements.

Strategic Investments

Lockheed Martin allocated over $3.5 billion in 2025 towards boosting production capacity and investing in next-gen technologies. This proactive investment strategy reflects the company’s strive to maintain its leadership in providing advanced capabilities to the U.S. and allied forces.

2026 Outlook

Looking ahead, Lockheed Martin's outlook for 2026 appears promising, with expectations of a 5% increase in sales and a remarkable 25% growth in operating profit. The projected free cash flow is estimated between $6.5 billion to $6.8 billion. This forecast aligns with the company’s strategic objectives to enhance operational performance while satisfying national defense priorities.

Segment Performance

Lockheed Martin divides its operations into four key segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space, all of which demonstrated robust performance in 2025. The operational details across these segments reveal:

• - Aeronautics: Sales rose to $30.3 billion, fueled by increased production of the F-35.
• - Missiles and Fire Control: This segment saw an impressive increase, with sales reaching $14.5 billion amid ramped-up missile production efforts.
• - Rotary and Mission Systems: Consistent sales figures at $17.3 billion highlighted stability.
• - Space: Experienced growth, with sales of $13 billion driven by new satellite programs.

Conclusion

Lockheed Martin’s financial results for 2025 present a compelling case for its continuing success in the defense industry. The combination of strong sales, high net earnings, and strategic investments sets the stage for further growth in 2026. As the defense landscape evolves, Lockheed Martin is well-positioned to meet the demands of military operations worldwide.