Lockheed Martin Sets 2025 Sales Outlook at $73.75B-$74.75B Amid $1.8B Program Charges

Lockheed Martin has signaled a $73.75B-$74.75B sales outlook for 2025 and addressed $1.8B in program charges. CEO James D. Taiclet highlighted the effective performance of Lockheed Martin systems, leading to customer directives to accelerate production scaling. The company's Q2 2025 earnings call emphasized the growth of its mission-critical systems.

Lockheed Martin Corporation (NYSE: LMT) reported its second quarter 2025 financial results, showcasing a sales figure of $18.2 billion, a 0.6% increase compared to the same period last year. The company reported a net earnings of $342 million, or $1.46 per share, which includes $1.6 billion in program losses and other charges totaling $169 million. This compares to net earnings of $1.6 billion, or $6.85 per share, in the second quarter of 2024.

The company's cash from operations was $201 million, while free cash flow was $(150) million, compared to $1.9 billion and $1.5 billion in the same period last year. The decrease in cash from operations was primarily due to an increase in working capital, driven by factors such as production and invoice timing impacting receivables, primarily related to the F-35 program at Aeronautics.

Lockheed Martin reaffirmed its 2025 guidance for sales and free cash flow. The company's CEO, James D. Taiclet, highlighted the effective performance of Lockheed Martin systems, leading to customer directives to accelerate production scaling. He mentioned that several allied nations have recently announced additional F-35 purchases, and the U.S. Army has awarded more than $1 billion in missile-related contracts.

The company took significant charges in the second quarter to address challenges on a classified program at its Aeronautics business segment and certain international helicopter programs at its Sikorsky business unit. These charges included additional pretax reach-forward losses of $950 million on the classified program, $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 write-off of fixed assets and a $103 million charge related to uncertain tax positions.

Despite these charges, the company's foundation remains solid and resilient. The company invested $800 million in infrastructure and innovation for growth and returned $1.3 billion to shareholders through dividends and share repurchases. The company is maintaining its full-year 2025 guidance for sales, cash from operations, capital expense, free cash flow, and share repurchases.

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