Lockheed Martin Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did LMT Beat Earnings? Q4 2025 Results
Lockheed Martin closed out 2025 on a high note, posting Q4 earnings per share of $5.80 against a consensus estimate of $5.75 — a beat of 0.87% — while revenue of $20.32 billion topped expectations of $19.86 billion by 2.34% and grew 9.1% year-over-year. The standout driver behind the quarter's strength was a dramatic reversal at the Missiles and Fire Control segment, which swung from an $804 million operating loss in Q4 2024 to a $535 million profit this period, fueled by production ramp-ups across JASSM, LRASM, PAC-3, and precision fires programs. That turnaround, combined with broad-based growth across all four business segments, helped lift full-year sales to $75.05 billion and pushed the company's backlog to a record $194 billion — a figure that underscores <a href="https://247wallst.com/investing/2025/12/05/lockheed-delivers-steady-defense-profits-as-boeing-burns-billions-ramping-production/">sustained demand for its platforms</a>. Looking ahead, management guided 2026 revenue to $77.50 billion–$80.00 billion, with diluted EPS of $29.35–$30.25 and free cash flow of $6.50 billion–$6.80 billion.
- F-35 program higher volume on production and sustainment contracts drove Aeronautics sales growth
- Tactical and strike missile production ramp-up (JASSM, LRASM, precision fires) drove MFC sales growth of 18% in Q4
- PAC-3 integrated air and missile defense programs contributed $180 million of Q4 MFC sales increase
- Favorable prior-year comparison due to $1.7 billion classified program losses in Q4 2024
- Integrated warfare systems and sensors (IWSS) radar and River Class Destroyer programs drove RMS growth
- Strategic and missile defense programs (NGI and FBM) drove Space segment growth
- Record backlog of $194 billion at end of 2025
“With a record $194 billion backlog, 6% year-over-year sales growth, and free cash flow generation above our prior expectation, 2025 marked a year of unprecedented demand for Lockheed Martin capabilities. This escalating demand for our signature programs and systems has been driven by combat-proven performance over recent years that has already been again demonstrated in 2026. During the U.S. military's recent Operation Absolute Resolve, F-35 and F-22 fighter jets, RQ-170 stealth drones, and Sikorsky Black Hawk helicopters were decisive contributors to enable American soldier, sailors, marines, and airmen to successfully execute extremely difficult missions and return safely.”
Lockheed Martin CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Lockheed Martin expects sales of $77.5 billion to $80.0 billion (approximately 5% growth), business segment operating profit of $8.425 billion to $8.675 billion (approximately 25% growth), diluted EPS of $29.35 to $30.25, cash from operations of $9.15 billion to $9.45 billion, capital expenditures of $2.5 billion to $2.8 billion, and free cash flow of $6.5 billion to $6.8 billion. The outlook does not include potential impacts of government shutdown or Executive Orders.
LMT YoY Financials
LMT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.