Companies /Industrials

Lockheed Martin Corp

NYSE: LMT Aerospace & Defense
$525.28
▼ $7.67 (−1.44%) today
Markets closed · 12:26pm ET

Q2 2025 Earnings

Reported Jul 22, 2025, 7:32am ET · SEC source
$1.46
Miss −77.79%
EPS · est. $6.57
$18.2B
Miss −2.30%
Revenue · est. $18.6B
+7.8%
Beating market
LMT vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%Jul 22Jul 23report 7:32am ETearnings+0.6%−1.4%
−4%0+4%+8%Jul 22Jul 23earnings+0.6%−1.4%
LMT −1.4%S&P 500 +0.6%
−4%0+4%+8%Jul 22Jul 23report 7:32am ETearnings−0.3%−1.4%
−4%0+4%+8%Jul 22Jul 23earnings−0.3%−1.4%
LMT −1.4%NASDAQ −0.3%
−4%0+4%+8%Jul 21Jul 29report 7:32am ETearnings+1.0%−2.5%
−4%0+4%+8%Jul 21Jul 29earnings+1.0%−2.5%
LMT −2.5%S&P 500 +1.0%
−4%0+4%+8%Jul 21Jul 29report 7:32am ETearnings+0.7%−2.5%
−4%0+4%+8%Jul 21Jul 29earnings+0.7%−2.5%
LMT −2.5%NASDAQ +0.7%
−10.81%
Day of report
+2.11%
Next session
+2.29%
One week
+8.88%
30 days

S&P 500 over the same 30 days: +1.06%.

Did LMT Beat Earnings? Q2 2025 Results

Lockheed Martin delivered a deeply disappointing second quarter, with diluted EPS of just $1.46 falling 77.79% short of the $6.57 consensus estimate as a wave of program charges overwhelmed what was otherwise a functionally stable revenue quarter. Sales of $18.16 billion came in 2.30% below expectations and were nearly flat year-over-year, up just 0.2%, as the company absorbed $1.60 billion in pre-tax program losses that sent shares <a href="https://247wallst.com/investing/2025/07/22/live-why-lockheed-martin-is-plunging-after-q2-earnings/">sharply lower after results</a> hit. The largest single blow was a $950 million reach-forward loss on a classified Aeronautics program plagued by design, integration, and testing challenges, compounded by a $570 million loss on the Canadian Maritime Helicopter Program. Together, those charges reduced diluted EPS by $5.83 and pushed both the Aeronautics and Rotary and Mission Systems segments into operating losses for the period. Management trimmed full-year EPS guidance to $21.70–$22.00 from a prior $27.00–$27.30, while reaffirming its revenue outlook of $73.75–$74.75 billion and a class action lawsuit alleging inadequate internal controls added further pressure to the company's credibility with investors.

Key Takeaways
  • F-35 production ramp-up driving Aeronautics sales growth of $470 million
  • JASSM, LRASM, and precision fires production ramp-up driving 11% MFC sales growth
  • $1.6 billion in program losses on classified Aeronautics program, CMHP, and TUHP significantly impacting profitability
  • $66 million fixed asset write-off from NGAD down-select decision
  • $103 million charge related to IRS uncertain tax position
  • Working capital increases driven by F-35 receivables timing, contract asset milestones, Sikorsky inventory, and Space billing cycles reduced cash from operations

“Over the course of the past few months, Lockheed Martin systems and platforms once again proved highly effective in combat operations and in deterring further aggression. Our F-35s, F-22s, PAC-3, THAAD, Aegis and many others, crewed by the soldiers, aircrews, sailors, marines and guardians of the U.S. and its Allies, and supported by our own dedicated teammates, performed extremely well in the most crucial and challenging situations.”

Lockheed Martin CEO, on the earnings call

Forward Guidance & Outlook

Lockheed Martin reaffirmed its full-year 2025 guidance for sales of approximately $73,750-$74,750 million and free cash flow of approximately $6,600-$6,800 million, with cash from operations of approximately $8,500-$8,700 million and capital expenditures of approximately $1,900 million. However, the company lowered its full-year diluted EPS outlook to approximately $21.70-$22.00, down from the prior guidance of approximately $27.00-$27.30, reflecting the $5.83 per share impact of Q2 program losses and other charges. Business segment operating profit guidance was reduced to approximately $6,600-$6,700 million from the prior $8,100-$8,200 million. The financial outlook does not include evolving impacts of tariffs, related recoveries, or Executive Orders issued by the Administration.

LMT YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$5.0B$10.0B$15.0B$18.1B$18.2BRevenue$2.2B$734.0MGross Profit$2.1B$748.0MOperating Income$1.6B$342.0MNet Income
$0$5.0B$10.0B$15.0BRevenueGross ProfitOperating IncomeNet Income

LMT Revenue by Segment

Aeronautics$7.4B+2.0%
Rotary and Mission Systems$4.0B−12.0%
Missiles and Fire Control$3.4B+11.0%
Space$3.3B+4.0%

Figures from SEC filings and company reports. Not investment advice.