Lockheed Martin Stock Drops 3.16% Amid CFO Departure, Supply Chain Woes

On April 18, 2025, Lockheed Martin's stock dropped by 3.16% in pre-market trading, marking a significant decline for the defense contractor.

Lockheed Martin announced that its Chief Financial Officer, Jesus 'Jay' Malave, is stepping down from his position. The company has appointed Evan Scott, a 26-year veteran of Lockheed Martin, to succeed Malave. Scott has held various financial roles within the company, including serving as the Chief Financial Officer for two different business areas. Malave's departure comes at a critical time, as the company was navigating regulatory challenges related to its acquisition of Aerojet Rocketdyne, which was ultimately acquired by L3Harris Technologies.

In addition to the leadership change, Lockheed Martin reaffirmed its 2025 earnings guidance, which does not account for the impact of fluctuating tariffs or recent announcements related to the "Next Generation Air Dominance" program. The company had previously forecasted earnings per share between $27 and $27.30 for 2025. Analysts, on average, had expected earnings per share of $27.17. The company is scheduled to release its first-quarter earnings on April 22, 2025.

Lockheed Martin's stock decline also comes amid broader market concerns and geopolitical tensions. The company's reliance on critical materials, such as gallium and rare earth elements, has become a significant challenge. China's export restrictions on these materials have disrupted Lockheed Martin's supply chain, particularly affecting the production of advanced radar systems like the TPY-4. The company is exploring alternative materials and supply sources, but these efforts are fraught with technical and logistical challenges.

Despite these hurdles, Lockheed Martin remains a key player in the defense industry, with a strong portfolio of advanced technologies and a robust backlog of orders. The company's ability to navigate these challenges will be crucial in maintaining its competitive edge and shareholder value.