Financial Data and Key Metrics Changes - Lockheed Martin reported a 4% year-over-year increase in sales for Q1 2025, reaching $15.5 billion, with a GAAP earnings per share of $7.28, reflecting a 14% increase [7][29] - The company generated $955 million in free cash flow after investing nearly $850 million in R&D and capital expenditures [30] - The segment operating margin was reported at 11.6%, with all four business areas generating double-digit returns [28][29] Business Line Data and Key Metrics Changes - Aeronautics sales increased by 3% year-over-year to $7.1 billion, primarily due to higher volumes on F-35 production contracts [32] - Missiles and Fire Control (MFC) sales rose by 13% from the prior year, driven by higher volumes on multiple tactical and strike missile programs, with segment operating profit improving by 50% [34] - Rotary and Mission Systems (RMS) sales increased by 6% to $4.3 billion, with operating profit up 21% year-over-year [38] - Space sales decreased by 2% year-over-year, primarily due to lower volume at national security space, but operating profit increased by 17% [39] Market Data and Key Metrics Changes - The backlog remains healthy at approximately $173 billion, with significant awards in Q1 coming from MFC and RMS [29] - The company anticipates between 170 to 190 F-35 deliveries for the year, with a backlog of approximately 360 jets at the end of Q1 [45] Company Strategy and Development Direction - Lockheed Martin's strategy focuses on integrating existing and new technologies to enhance capabilities, particularly in missile systems and air dominance [11][17] - The company is committed to operational execution, driving cost competitiveness, quality, and schedule adherence, with a focus on delivering on time and on budget [22] - The management emphasizes the importance of digital technology and AI in enhancing defense capabilities and operational efficiency [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance of mid-single-digit sales growth and double-digit growth in free cash flow, despite known tariff headwinds [8][44] - The company is optimistic about the impact of recent executive orders aimed at reducing bureaucratic red tape in defense procurement [62][64] - Management highlighted the importance of maintaining momentum in operational initiatives and delivering shareholder value [76] Other Important Information - Lockheed Martin's advanced air and missile systems secured several large missile program awards in Q1, comprising up to $10 billion in future work [11] - The company is actively engaged in the Golden Dome initiative, which aims to enhance national defense capabilities through integrated systems [10][94] Q&A Session Summary Question: Feedback on NGAD decision and potential protest - Management received a classified debrief from the U.S. Air Force regarding the NGAD decision and has decided not to protest it, focusing instead on applying developed technologies to existing platforms [54][56] Question: Impact of executive orders from the White House - Management welcomed the executive orders aimed at reducing red tape, which are expected to speed up acquisition processes and enhance opportunities for defense contractors [62][64] Question: Risks of tariffs and priorities for the new CFO - The company feels insulated from tariff impacts due to protections in the supply chain and mechanisms to recover costs, with a focus on maintaining momentum in operational initiatives [70][76] Question: Timing for F-35 Lot 19 and international demand - Lot 19 is expected in the second half of the year, with strong international demand allowing for potential absorption of any U.S. production cutbacks [81][82] Question: Discussion on Golden Dome funding and production ramp - Management outlined a three-segment approach for Golden Dome, emphasizing readiness to deploy existing systems and integrate new technologies [87][94] Question: Availability impact of new export controls on rare earth metals - Management confirmed that they are constrained from using Chinese inputs and have alternate sources for materials, ensuring sufficient supply for current commitments [104][108] Question: Production increase plans for missiles and fire control - Strong demand for MFC products is expected to continue, with several programs ramping up production in response to backlog and budget demands [111][112]

Core Insights - Lockheed Martin reported revenue of $17.96 billion for the quarter ended March 2025, reflecting a 4.5% increase year-over-year and a surprise of +1.14% over the Zacks Consensus Estimate of $17.76 billion [1] - Earnings per share (EPS) reached $7.28, up from $6.33 in the same quarter last year, resulting in an EPS surprise of +14.83% compared to the consensus estimate of $6.34 [1] Financial Performance Metrics - Net sales in Aeronautics were $7.06 billion, exceeding the average estimate of $6.97 billion by analysts, representing a year-over-year increase of +3.1% [4] - Net sales in Rotary and Mission Systems totaled $4.33 billion, slightly above the $4.30 billion estimate, with a year-over-year change of +5.9% [4] - Net sales in Missiles and Fire Control reached $3.37 billion, surpassing the average estimate of $3.21 billion, marking a +12.7% increase year-over-year [4] - Net sales in Space were $3.21 billion, slightly below the average estimate of $3.22 billion, indicating a year-over-year decline of -2% [4] Operating Profit Analysis - Operating profit in Aeronautics was $720 million, exceeding the average estimate of $689.11 million [4] - Operating profit in Space reached $379 million, significantly above the average estimate of $308.06 million [4] - Operating profit in Rotary and Mission Systems was $521 million, surpassing the average estimate of $465.20 million [4] - Operating profit in Missiles and Fire Control was $465 million, slightly above the average estimate of $460.37 million [4] Stock Performance - Lockheed Martin's shares have returned +5.4% over the past month, contrasting with the Zacks S&P 500 composite's -8.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Lockheed Martin (LMT) came out with quarterly earnings of $7.28 per share, beating the Zacks Consensus Estimate of $6.34 per share. This compares to earnings of $6.33 per share a year ago. These figures are adjusted for non-recurring items. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations ...

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Financial Performance - Sales for Q1 2025 were $18.0 billion, a 4% increase from $17.2 billion in Q1 2024[3] - Net earnings for Q1 2025 were $1.7 billion, or $7.28 per share, compared to $1.5 billion, or $6.39 per share in Q1 2024[3] - Business segment operating profit for Q1 2025 was $2,085 million, up 19% from $1,745 million in Q1 2024[43] - The consolidated operating profit for Q1 2025 was $2,372 million, representing a 17% increase compared to $2,029 million in Q1 2024[41] - The total consolidated operating margin improved to 13.2% in Q1 2025 from 11.8% in Q1 2024[43] - Net earnings for the quarter ended March 30, 2025, were $1,712 million, up from $1,545 million for the same period in 2024, representing an increase of 10.8%[45] Cash Flow and Capital Expenditures - Cash from operations was $1.4 billion in Q1 2025, down from $1.6 billion in Q1 2024; free cash flow decreased to $955 million from $1.3 billion[8] - The company returned $1.5 billion to shareholders through dividends and share repurchases in Q1 2025[5] - Free cash flow is utilized to evaluate business performance and liquidity, indicating cash available for stockholders and investments[33] - Capital expenditures for the quarter were $454 million, compared to $378 million in the same quarter of 2024, an increase of 20.1%[45] - Cash and cash equivalents at the end of the period were $1,803 million, down from $2,483 million at the beginning of the period, a decrease of 27.4%[45] Sales by Segment - Aeronautics segment sales increased by $212 million, or 3%, driven by a $215 million increase in F-35 program sales[17] - Missiles and Fire Control segment sales rose by $380 million, or 13%, primarily due to a $370 million increase in tactical and strike missile programs[20] - Rotary and Mission Systems segment sales increased by $240 million, or 6%, attributed to higher volume in integrated warfare systems and Sikorsky helicopter programs[23] - Space segment sales decreased by $64 million, or 2%, mainly due to lower sales on national security space programs[25] - Aeronautics segment sales increased by 3% to $7,057 million in Q1 2025, while Missiles and Fire Control saw a 13% increase to $3,373 million[43] Financial Outlook - The 2025 financial outlook projects sales between $73.75 billion and $74.75 billion, with diluted earnings per share expected to be around $27.00 to $27.30[12] - The company projects a business segment operating profit (non-GAAP) of approximately $8,100 million to $8,200 million for 2025[32] Tax and Equity - The effective income tax rate was 15.9% for Q1 2025, slightly up from 15.8% in Q1 2024[29] - The effective tax rate for Q1 2025 was 15.9%, slightly up from 15.8% in Q1 2024[41] - The total stockholders' equity increased to $6,683 million as of March 30, 2025, compared to $6,333 million at December 31, 2024, an increase of 5.5%[44] Debt and Backlog - Long-term debt decreased to $18,661 million as of March 30, 2025, from $19,627 million at December 31, 2024, a reduction of 4.9%[44] - The total backlog decreased to $172,974 million as of March 30, 2025, from $176,040 million at December 31, 2024, a decline of 1.2%[47] Share Repurchase and Deliveries - The company repurchased $750 million of common stock during the quarter, compared to $1,000 million in the same quarter of 2024[45] - The company delivered 47 F-35 aircraft in the first quarter of 2025, with no deliveries in the same quarter of 2024[47] Pension Expense - The FAS pension expense for 2025 is projected to be $(445) million, a significant decrease from $2 million in 2024[46] Risks and Contracts - The company emphasizes the importance of government contracts and the associated risks in its forward-looking statements[37] Assets - Total assets increased to $56,669 million as of March 30, 2025, compared to $55,617 million at December 31, 2024, reflecting a growth of 1.9%[44]

Core Insights - Lockheed Martin Corporation reported first quarter 2025 sales of $18.0 billion, a 4% increase from $17.2 billion in the same quarter of 2024. Net earnings rose to $1.7 billion, or $7.28 per share, compared to $1.5 billion, or $6.39 per share, in the prior year [1][5][39]. Financial Performance - Sales increased by 4% year-over-year to $18.0 billion [5][39]. - Net earnings for the quarter were $1.7 billion, translating to $7.28 per share, up from $1.5 billion and $6.39 per share in Q1 2024 [1][5][39]. - Cash from operations was $1.4 billion, down from $1.6 billion in Q1 2024, while free cash flow decreased to $955 million from $1.3 billion [1][6][39]. - The company returned $1.5 billion to shareholders through dividends and share repurchases [5][7]. Business Segments - Aeronautics segment sales increased to $7.1 billion, a 3% rise, driven by a $215 million increase in F-35 program sales [14][39]. - Missiles and Fire Control (MFC) sales surged by 13% to $3.4 billion, primarily due to a $370 million increase from tactical and strike missile programs [17][39]. - Rotary and Mission Systems (RMS) reported a 6% increase in sales to $4.3 billion, attributed to higher volumes in integrated warfare systems and Sikorsky helicopter programs [19][39]. - Space segment sales decreased by 2% to $3.2 billion, mainly due to lower sales in national security space programs [21][39]. Operational Highlights - The company maintained a backlog of $173 billion, representing more than two years of sales [2][5]. - Lockheed Martin invested over $850 million in research and development and capital expenditures during the quarter [2]. - The company reaffirmed its financial outlook for 2025, projecting sales between $73.75 billion and $74.75 billion [9][8]. Cash Flow and Shareholder Returns - Cash from operations was $1.4 billion, with free cash flow at $955 million, reflecting a decrease from the previous year [6][39]. - The company paid cash dividends of $796 million and repurchased 1.7 million shares for $750 million during the quarter [7][39].

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying LMT stock? Here's what analysts think: Lockheed Martin Corporation LMT will release earnings results for the first quarter, before the opening bell on Tuesday, April 22. Analysts expect the Bethesda, Maryland-based company to report quarterly earnings at $6.31 per share, down from $6.33 per share in the year-ago period. Lockheed Martin projects to report quarterly revenue at $17.8 billi ...

Core Viewpoint - Lockheed Martin Corporation (LMT) is expected to report first-quarter 2025 results on April 22, with revenue estimates showing a slight increase while earnings per share are projected to decline marginally compared to the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for LMT's revenues is $17.76 billion, reflecting a 3.3% increase from the same quarter last year [2]. - The consensus estimate for earnings per share is $6.32, indicating a 0.1% decrease from $6.33 reported in the prior-year quarter [2]. - LMT has a history of exceeding earnings estimates, with an average surprise of 10.33% over the last four quarters [2]. Segment Performance - The Aeronautics segment, contributing nearly 40% to LMT's revenue, is expected to show strong sales driven by increased production and sustainment contracts for the F-35 jet program, with revenues estimated at $6,983.6 million, a 2% rise year-over-year [8][9]. - The Missiles and Fire Control (MFC) segment is projected to see a revenue increase of 7.2% to $3,209.4 million, benefiting from production ramp-ups of various missile programs [11][12]. - The Rotary and Mission Systems (RMS) segment is also expected to perform well, with revenues estimated at $4,302.8 million, reflecting a 5.3% growth from the previous year [12][13]. - Conversely, the Space segment is anticipated to decline by 1.4% to $3,223.3 million due to lower sales from the Orion program and classified projects [10]. Market Context - LMT's stock has underperformed, declining 4.5% year-to-date, while the aerospace-defense industry has seen a 2.6% increase [15]. - In contrast, competitors like Northrop Grumman and General Dynamics have experienced stock increases of 15.2% and 4.8%, respectively [17]. - LMT is currently trading at a forward price/earnings ratio of 16.66, lower than the industry average of 23.49, indicating a potential valuation opportunity [18]. Investment Outlook - The global defense landscape has prompted increased defense spending, which is expected to positively impact LMT's backlog and overall performance [19]. - LMT offers a dividend yield of 2.84%, surpassing the S&P 500's yield of 1.40%, which may attract income-focused investors [20]. - However, the company's elevated long-term debt-to-capital ratio raises concerns among investors [20].

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Core Viewpoint - Lockheed Martin experienced a significant stock reaction due to the unexpected resignation of CFO Jay Malave just days before the earnings report, leading to a 6% drop in shares at the open [1][2]. Group 1: Management Changes - CFO Jay Malave announced he is "pursuing other opportunities," and Evan Scott has been appointed as his replacement, who has been with Lockheed for 26 years [2]. - Malave's departure is not linked to any accounting or financial issues, and the company reaffirmed its guidance for 2025 results [3]. Group 2: Company Performance - Lockheed Martin has faced challenges this year, particularly with the F-35 program and competition from Boeing for the Air Force's sixth-generation fighter program, which could have provided substantial funding [4]. - The company is also reportedly lagging behind private firms like SpaceX in upgrading the nation's missile defense systems [4]. Group 3: Investment Outlook - Despite current challenges, Lockheed Martin has a substantial portfolio addressing various Pentagon needs and offers a nearly 3% dividend yield, making it a potential candidate for investors looking for long-term opportunities [5].