Lockheed Martin Q2 2025 Earnings: $342M Net Earnings, $1.6B Program Losses, $529.61 Average Target Price

Lockheed Martin reported Q2 2025 earnings with net earnings of $342 million, impacted by $1.6 billion in program losses and $169 million in additional charges. The company's average target price is $529.61, indicating a 15% upside from the current price. Lockheed Martin generated $955 million in free cash flow and returned $1.5 billion to shareholders in Q1 2025. The company secured large missile program awards and maintained a backlog of approximately $173 billion.

Lockheed Martin Corporation (NYSE: LMT) reported its second quarter 2025 financial results, highlighting a net earnings of $342 million, which was impacted by $1.6 billion in program losses and $169 million in additional charges. The company's average target price is $529.61, indicating a 15% upside from the current price. Lockheed Martin generated $955 million in free cash flow and returned $1.5 billion to shareholders in the first quarter of 2025. The company secured large missile program awards and maintained a backlog of approximately $173 billion.

The company's sales in the second quarter of 2025 were $18.2 billion, compared to $18.1 billion in the second quarter of 2024. Net earnings in the second quarter of 2025 were $342 million, or $1.46 per share, including $1.6 billion of program losses and $169 million of other charges. This compares to $1.6 billion, or $6.85 per share, in the second quarter of 2024. Cash from operations was $201 million in the second quarter of 2025, compared to $1.9 billion in the second quarter of 2024. Free cash flow was $(150) million in the second quarter of 2025, compared to $1.5 billion in the second quarter of 2024.

Lockheed Martin Chairman, President, and CEO Jim Taiclet stated, "Our F-35s, F-22s, PAC-3, THAAD, Aegis, and many others performed extremely well in combat operations and in deterring further aggression. Our customers are asking us to elevate and accelerate key programs, and we are taking a number of charges this quarter to address newly identified risks. We remain committed to delivering critical capabilities and are fully focused on the growth inflection we expect."

The company reported additional pretax reach-forward losses of $950 million on a classified program at its Aeronautics business segment, $570 million on the Canadian Maritime Helicopter Program (CMHP), and $95 million on the Turkish Utility Helicopter Program (TUHP). Other charges included a $66 million fixed asset write-off and a $103 million charge related to uncertain tax positions.

Lockheed Martin reaffirmed its 2025 guidance for sales and free cash flow, while maintaining a solid foundation and investing $800 million in infrastructure and innovation for growth. The company returned $1.3 billion to shareholders through dividends and share repurchases.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250722ph33638/lockheed-martin-reports-second-quarter-2025-financial-results