Lockheed Martin's Q1 2025: Contradictions Unveiled in F-35 Production, Missiles Demand, and Pension Strategies

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Revenue Growth and Sales Performance:
- Lockheed Martin reported a 4% increase in year-over-year sales for Q1 2025.
- The growth was driven by higher demand in several business areas, including aeronautics and missiles and fire control.

Financial Performance and Guidance:
- GAAP earnings per share increased by 14%, with operating profit margins reaching 11.6%.
- The strong financial results reinforce confidence in achieving mid-single-digit sales growth, 11% segment operating margin, and high single-digit free cash flow growth for the full year.

Backlog and New Contracts:
- The company maintained a strong backlog of approximately $173 billion.
- This was supported by major contract awards, such as new business from the Missile and Fire Control segment valued at around $2 billion.

Research and Development and Shareholder Returns:
- Lockheed Martin invested $850 million in independent research and development and capital expenditures in Q1.
- They provided a robust shareholder return through $1.5 billion in dividends and share purchases during the quarter.