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

What is Lockheed Martin's gross profit margin?

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 were the key takeaways from Lockheed Martin’s earnings call?

Did Lockheed Martin beat or miss consensus estimates last quarter?

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

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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LMT

LMT fundamentals

You can ask Aime