What is the market's earnings forecast for Lockheed Martin next quarter?

What guidance did Lockheed Martin's management provide for the next earnings period?

What is Lockheed Martin's latest dividend and current dividend yield?

What factors drove the changes in Lockheed Martin's revenue and profit?

What is Lockheed Martin's gross profit margin?

What is the revenue and EPS growth rate for Lockheed Martin year over year?

What does Lockheed Martin do and what are its main business segments?

What were the key takeaways from Lockheed Martin's earnings call?

- **Record Backlog and Growth**: $179B backlog driven by $30B multiyear contracts, 9% YoY sales growth, 5% normalized growth.
- **Strategic Investments**: $9.8B PAC-3 and $9.5B JASSM/LRASM contracts for missile defense; F-35 Block 4 modernization on track.
- **Financial Strength**: $6.95 EPS, 10.9% segment margin, $6.6B free cash flow guidance; 5% dividend increase.
- **Defense Leadership**: Advanced missile defense, space systems, and F-35 enhancements for deterrence.
- **Pension Management**: Prefunding $1B of 2026 obligations for neutral 2027+ cash impact.

**【CEO Summary Section】**
- **Record Backlog and Growth**: Achieved a record backlog of $179 billion, driven by multiyear contracts totaling $30 billion in the quarter. Sales increased 9% YoY, with normalized growth of 5%.
- **Strategic Investments**: Expanded production capacity for key programs like PAC-3 MSE interceptors ($9.8B contract) and JASSM/LRASM ($9.5B), positioning for long-term growth.
- **Defense Focus**: Emphasized deterrence through advanced missile defense, space-based systems, and F-35 enhancements, with Block 4 modernization on track.
- **Shareholder Returns**: Increased dividend by 5% and repurchased $1.8B in shares, reflecting confidence in stable cash flow.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP EPS of $6.95, up 2% YoY, driven by higher segment earnings and lower share count. Free cash flow of $3.3B in Q3, year-to-date $4.1B, supporting $6.6B full-year guidance.
- **Margin Management**: Segment operating margin of 10.9%, with Space leading at 9.9% due to FBM and classified programs. MFC margins benefited from munitions production ramp-ups.
- **Pension Strategy**: Prefunding $1B of 2026 pension obligations, aiming for neutral cash impact from 2027 onward.
- **Outlook Update**: Tightened 2025 sales guidance to $74.25B-$74.75B (midpoint +5% YoY), with EPS of $22.15-$22.35, reflecting tax rate improvements.

**【Q&A Highlights】**
- **Supply Chain Confidence**: Management assured investors of supplier readiness for munitions ramps, citing investments in solid rocket motors and seeker technologies.
- **F-35 Margin Opportunities**: Transition to firm fixed-price contracts in Lot 19 may unlock higher margins, with Block 4 development on track.
- **Golden Dome Potential**: While specifics await government architecture details, Lockheed is positioned to leverage existing assets across radar, space, and missile defense.
- **Pension Mitigation**: Prefunding 2026 contributions to offset future cash impacts, maintaining disciplined capital allocation.
- **International Growth**: Focus on F-35, MFC munitions, and RMS Black Hawk exports, with Belgium and Denmark expanding fleets.

Lockheed Martin Corporation (LMT) Q3 2025 Earnings Call Transcript

- **Q2 Financials**: $18 billion in sales, $1.8 billion in legacy program charges, and $1.3 billion returned to shareholders. Free cash flow usage of $150 million due to timing, with H2 improvement expected.
- **F-35 Momentum**: 50 Q2 deliveries, 97 YTD, and 170-190 target for 2025. International orders from UK, Belgium, and Denmark highlight enduring relevance.
- **Hypersonic Growth**: ARRW and CPS programs demonstrate speed to maturity, with ARRW entering production and CPS sea-based testing completed.
- **Challenges & Risks**: Ongoing classified program costs (~$500M 2025, $400M 2026), tax dispute ($4.6B IRS claim contested), and pension contributions ($1B 2026) weigh on cash flow.
- **Future Outlook**: 2025 guidance reaffirmed; 2026 free cash flow ~$6B reflects program investments and tax benefits. Golden Dome and missile defense scalability present long-term opportunities.

**【CEO Summary Section】**
- Reported $18 billion in sales for Q2 2025, with $800 million invested in infrastructure and innovation. Recognized $1.8 billion in losses across legacy programs due to contractual and operational challenges.
- Highlighted the effectiveness of F-35 and other systems in recent combat operations, emphasizing their role in deterrence and defense. Discussed potential growth in munitions and hypersonic programs, including ARRW and CPS.
- Announced a 5-year multiyear procurement for CH-53K with 85 aircraft, targeting deliveries from 2029. F-35 deliveries remain on track for 170-190 units in 2025, with strong international demand from the UK, Belgium, and Denmark.

**【CFO Financial Commentary】**
- Segment operating profit was $570 million, impacted by $1.6 billion in charges from the classified Aeronautics program ($950 million), CMHP ($570 million), and TUHP ($95 million). GAAP EPS was $1.46, reduced by $5.83 from program losses and tax reserves.
- Free cash flow usage of $150 million in Q2, driven by timing issues, but expected improvement in H2 with F-35 Lot 18-19 award and other milestones. Updated 2025 guidance: $73.75-$74.75 billion in sales, $21.70-$22 EPS, and $6.6-$6.8 billion free cash flow.
- Anticipated 2026 free cash flow of ~$6 billion, reflecting ongoing program costs, pension contributions, and tax benefits from recent legislation.

**【Q&A Highlights】**
- **Risk Management**: CEO and CFO emphasized enhanced oversight and contract restructuring to mitigate risks in troubled programs. Aeronautics classified program charges reflect long-term fixed-price commitments, with potential future reductions through customer collaboration.
- **Tax Liability**: Contested $4.6 billion IRS claim, with $100 million accrued for interest. Dispute resolution ongoing through appeals and judicial processes.
- **F-35 Production**: Despite budget uncertainties, strong international demand and backlog (311 units) support production rates. NGAD-related R&D will enhance F-35 capabilities as a 'best value bridge' to sixth-generation systems.
- **Golden Dome**: Lockheed Martin positioned to leverage existing missile defense systems (THAAD, PAC-3, LRDR) for homeland defense, with potential future backlog growth.


Lockheed Martin Corporation (LMT) Q2 2025 Earnings Call Transcript

- **Q1 Growth Beats Expectations**: 4% revenue growth, $955M free cash flow, and $173B backlog.\n- **F-35 Modernization**: Applying NGAD tech to achieve 80% 6th Gen capability at 50% cost.\n- **Missile Dominance**: $10B missile program wins (PrSM, THAAD, LRASM) and JASSM-LRASM ramp to 1,100 units in 2027.\n- **Golden Dome Readiness**: Existing missile systems (PAC-3, THAAD) ready for homeland defense deployment.\n- **Tariff Mitigation**: 40% cost-type contracts; 60% with recovery clauses.\n- **Long-Term Vision**: $10B R&D/CAPEX, 3,500 F-35 fleet expansion, and LM 400 space technology.\n

**【CEO Opening Remarks】**
- Q1 2025 revenue grew 4% YoY to $15.3B, driven by missile and fire control programs (13% growth) and strong F-35 production.\n- Invested $850M in R&D and capital expenditures, returning $1.5B to shareholders via dividends and buybacks.\n- Maintained full-year guidance of mid-single-digit sales growth, 11% segment margin, and $6.7B free cash flow.\n- Highlighted '21st Century Security Strategy' to integrate legacy platforms with AI, 5G, and digital twins for cost-effective multi-domain solutions.\n- Won $10B in missile program awards (PrSM, THAAD, LRASM) and secured Singapore's F-35 expansion to 20 jets.\n- Demonstrated advanced capabilities in counter-drone systems, F-35/Aegis integration, and LM 400 space technology.\n\n**【CFO Financial Highlights】**
- GAAP EPS: $7.28 (+14% YoY), driven by higher volume and profit adjustments.\n- Free Cash Flow: $955M after $850M in R&D/CAPEX.\n- Book-to-bill: <1.0, but backlog remains strong at $173B.\n- Key wins: $2B in JASSM-LRASM orders, 6-year Canadian Surface Combatant contract, and Trident II D5 Life Extension.\n- FY25 Outlook: 11% segment margin, $6.7B free cash flow, and $18B+ shareholder returns through 2027.\n\n**【Business Area Updates】**
- **Aeronautics**: F-35 sales +3% YoY, Singapore F-35A expansion to 20 jets.\n- **MFC**: 13% sales growth (JASSM, HIMARS), 50% profit margin expansion.\n- **RMS**: +6% sales (Canadian destroyers, BLACK HAWK), 21% margin growth.\n- **Space**: -2% sales (OPIR decline), +17% profit from commercial civil space programs.\n\n**【Q&A Key Takeaways】**
- **NGAD Decision**: No protest; applying NGAD tech to F-35 to achieve 80% 6th Gen capability at 50% cost.\n- **Tariffs**: 40% of contracts cost-type; 60% have recovery clauses.\n- **F-35 Production**: 170-190 deliveries in 2025, Lot 18 defintization in Q2.\n- **Golden Dome**: Ready to deploy existing missile systems (PAC-3, THAAD) and scale production.\n- **Rare Earths**: No supply chain disruption risk for FY25; U.S. sources being developed.\n- **MFC Growth**: JASSM-LRASM ramp to 1,100 units in 2027, PRISM IDIQ, and FBM sustainment.\n\n**【Long-Term Vision】**
- $10B R&D/CAPEX through 2027, +$18B shareholder returns.\n- 'OneLMX' digital transformation: 50% faster development cycles (e.g., CMMT missile).\n- 3,500 F-35 fleet expansion with 5th Gen+ upgrades.\n- Space: LM 400 mid-orbit satellites for multi-mission flexibility.\n- NGI: $5B IDIQ for multi-domain sensors.\n- CH-53K, FBM, and BLACK HAWK sustainment growth.\n

Lockheed Martin (LMT)-22 Apr 25-2025 Q1 Earnings call transcript

- **Record Growth**: 2024 sales up 5% to $71B, backlog hits $176B. 2025 outlook: 4-5% sales growth, 11% margin, double-digit free cash flow per share growth.
- **F-35 Dominance**: 110 deliveries in 2024, 170-190 expected in 2025. 20th customer (Romania) joins with 32 aircraft order.
- **De-Risking Success**: $1.8B charges on classified programs reduce future risk; MFC classified program margins to improve post-phase shift.
- **Cash Return**: $5.3B free cash flow in 2024, >100% returned to shareholders via buybacks and dividends.
- **Strategic Investments**: $3.3B in R&D and capex to support AI, autonomy, and hypersonic capabilities.


**【CEO Opening Remarks】**
- **Revenue Growth and Backlog**: 2024 sales grew 5% YoY to $71B, with backlog reaching a record $176B, driven by all four business areas. 2025 outlook includes mid-single-digit sales growth, 11% operating margin, and double-digit free cash flow per share growth.
- **Key Programs**: 
  - F-35 delivered 110 aircraft in 2024, with 170-190 expected in 2025. Romania joined as the 20th customer, procuring 32 F-35s.
  - TR-3 capabilities advanced, with additional upgrades planned for 2025.
  - ARROW hypersonic missile completed a successful flight test.
- **Financial Strategy**: Returned >100% of free cash flow to shareholders via dividends and $3.7B share buybacks in 2024. Continued focus on free cash flow and disciplined bidding with risk-adjusted ROI.

**【CFO Financial Overview】**
- **2024 Results**: 
  - Sales: $71B (+5% YoY)
  - Segment Operating Profit: $6.1B (impacted by $1.8B charges on classified programs)
  - Free Cash Flow: $5.3B (including $990M pension pre-funding)
- **2025 Outlook**: 
  - Sales: 4-5% growth
  - Operating Margin: 11%
  - Free Cash Flow: 9% growth at midpoint
- **De-Risking Actions**: 
  - $1.4B charge on MFC classified program
  - $555M charge on Aeronautics classified program
  - Implemented continuous monitoring, technical resources, and automated testing to reduce future risks.

**【Business Area Breakdown】**
- **Aeronautics**: 
  - Q4 Sales: $5.3B (+5% YoY)
  - Full Year Sales: $18.8B (+4% YoY)
  - F-35 Lot 18 undefinitized contract awarded, expected to be definitized in H1 2025.
- **MFC**: 
  - Q4 Sales: $4.8B (+8% YoY)
  - Full Year Sales: $18.3B (+13% YoY)
  - Growth driven by JASSM, LRASM, GMLRS, and PAC-3 production ramps.
- **RMS**: 
  - Q4 Sales: $4.3B (-10% YoY)
  - Full Year Sales: $16.8B (+6% YoY)
  - CH-53K production ramp and Canadian Surface Combatant contracts offset Seahawk volume decline.
- **Space**: 
  - Q4 Sales: $1.4B (-13% YoY)
  - Full Year Sales: $5.8B (-1% YoY)
  - GPS-3 SV-7 launched in Q4, demonstrating operational agility.

**【Q&A Highlights】**
- **Financial Risks**: 
  - Aeronautics classified program risk reduced through cost reset and process changes. MFC classified program expected to improve margins as it moves into next phase.
  - 2025 working capital improvement of 1 day to offset growth-related use of cash.
- **F-35 Sustainability**: 
  - Production rate of 156/year maintained due to U.S. and international demand. TR-3 upgrades to enhance 5G.MIL interoperability.
- **Defense Industry Trends**: 
  - Support for DOGE's streamlined acquisition process. Fixed-price contracts balanced with risk-adjusted ROI discipline.
- **International Growth**: 
  - Lot 19 F-35 contract expected in H2 2025. Türkiye F-16 sustainment and Lot 9 CH-53K negotiations underway.
- **Supply Chain**: 
  - MFC and RMS supply chain improvements, but ongoing discrete issues. 2025 sales growth driven by rising value chain performance.


LMT

LMT fundamentals

Earnings Call

You can ask Aime