Lockheed Martin Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.79%.
Did LMT Beat Earnings? Q3 2025 Results
Lockheed Martin posted a standout third quarter of fiscal 2025, with diluted EPS of $6.95 beating the $6.35 consensus estimate by 9.45% and revenue of $18.61 billion edging ahead of the $18.52 billion Wall Street expected — representing 8.8% year-over-year growth that underscores the defense giant's <a href="https://247wallst.com/investing/2025/12/05/lockheed-delivers-steady-defense-profits-as-boeing-burns-billions-ramping-production/">steady earnings momentum</a> in an increasingly complex production environment. The F-35 program was the central engine of that growth, with the Aeronautics segment surging 12% year-over-year on higher production and sustainment volume — a trajectory that has put Lockheed on pace for a record year of F-35 deliveries, with 143 jets handed off through the first nine months alone and projections pointing to 170–190 for the full year. Free cash flow of $3.35 billion added further confidence, and management rewarded shareholders with a 5% dividend increase to $3.45 per share. Looking ahead, Lockheed raised its full-year EPS guidance to $22.15–$22.35 and narrowed its sales outlook to $74.25–$74.75 billion, reflecting sustained demand across its record $179.07 billion backlog.
- F-35 program higher volume on production and sustainment contracts drove $965 million sales increase in Aeronautics
- Production ramp-up on JASSM, LRASM, precision fires, and PAC-3 drove Missiles and Fire Control growth of 14%
- Higher Sikorsky helicopter production volume on Black Hawk programs
- Higher volume on Fleet Ballistic Missile (FBM) and Next Generation Interceptor (NGI) programs drove Space growth
- Favorable profit booking rate adjustments on FBM program boosted Space operating profit by 22%
- Working capital improvement from F-35 Lots 18-19 contract and lower tax payments from the One Big Beautiful Bill Act drove strong cash generation
“Based on the effectiveness and reliability of our products and systems, strong demand from Lockheed Martin's customers—both in the United States and among our allies—continues. As a result of this unprecedented demand, we are increasing production capacity significantly across a wide range of our lines of business.”
Lockheed Martin CEO, on the earnings call
Forward Guidance & Outlook
Lockheed Martin updated its 2025 full-year financial outlook, raising the low end of sales guidance to ~$74,250–$74,750 million (from ~$73,750–$74,750 million). Business segment operating profit guidance was narrowed upward to ~$6,675–$6,725 million (from ~$6,600–$6,700 million). Diluted EPS outlook was raised to ~$22.15–$22.35 (from ~$21.70–$22.00). Cash from operations is expected at ~$8,500 million, capital expenditures at ~$1,900 million, and free cash flow at ~$6,600 million. The outlook incorporates the company's current assessment of tariff impacts and related recovery on contracts, but does not include potential impacts of a government shutdown, Executive Orders, or potential non-cash pension annuity charges that could occur as early as Q4 2025.
LMT YoY Financials
LMT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.