Lockheed Martin Corp
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.59%.
Did LMT Beat Earnings? Q1 2025 Results
Lockheed Martin opened 2025 with a standout first quarter, posting earnings per share of $7.28 against a Wall Street consensus of $6.31 — a 15.30% beat — while revenue climbed 4.5% year-over-year to $17.96 billion, edging past estimates of $17.80 billion. The headline numbers were powered largely by an exceptional performance in Missiles and Fire Control, where a production ramp-up on JASSM and LRASM programs, combined with the non-recurrence of a $100 million classified-program charge from a year earlier, drove segment operating margins from 10.4% to 13.8% and lifted net earnings to $1.71 billion. Consolidated profit booking rate adjustments — totaling roughly $480 million versus just $195 million in Q1 2024 — also played a meaningful role in the margin expansion. The company returned $1.55 billion to shareholders through dividends and buybacks and reaffirmed its full-year outlook of $73.75 billion to $74.75 billion in sales and diluted EPS of $27.00 to $27.30, though guidance notably excludes evolving tariff impacts, a caveat that tempered some investor enthusiasm despite the strong quarter.
- F-35 production volume increase driving Aeronautics sales growth of $215 million
- JASSM, LRASM, and precision fires production ramp-up driving $370 million MFC sales increase
- Favorable net profit booking rate adjustments of approximately $480 million vs. $195 million in Q1 2024
- Canadian Surface Combatant, radar programs, and Black Hawk production driving RMS growth
- $50 million intellectual property license arrangement at RMS
- Favorable performance at completion on commercial civil space programs and a classified Aeronautics program totaling $185 million in adjustments
- 47 F-35 deliveries in Q1 2025 vs. zero in Q1 2024
“The momentum we created last year continued into the first quarter of 2025, with sales growing 4% year-over-year and free cash flow generation of $955 million. We continued investing in the business with over $850 million of research and development and capital expenditures in the quarter, and returned $1.5 billion to shareholders through dividends and share repurchases. These solid first quarter results reinforce confidence in our ability to achieve the full year 2025 financial guidance we laid out in January, demonstrating the resilience and adaptability of Lockheed Martin's franchises amidst a highly dynamic geopolitical and technical environment.”
Lockheed Martin CEO, on the earnings call
Forward Guidance & Outlook
Lockheed Martin reaffirmed its full-year 2025 financial outlook: sales of approximately $73,750-$74,750 million; business segment operating profit of approximately $8,100-$8,200 million; diluted EPS of approximately $27.00-$27.30; cash from operations of approximately $8,500-$8,700 million; capital expenditures of approximately $1,900 million; and free cash flow of approximately $6,600-$6,800 million. The outlook assumes programs are funded consistent with the Continuing Appropriations and Extensions Act of 2025 signed March 15, 2025. The outlook does not include evolving impacts of tariffs or related recoveries, the recent Next Generation Air Dominance announcement, or Executive Orders issued by the Administration.
LMT YoY Financials
LMT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.