Lockheed Martin Reports Third Quarter 2025 Financial Results

Core Insights - Lockheed Martin Corporation reported third quarter 2025 sales of $18.6 billion, a 9% increase from $17.1 billion in the same quarter of 2024 [1][5] - Net earnings for the third quarter of 2025 were $1.6 billion, or $6.95 per share, compared to $1.6 billion, or $6.80 per share, in the third quarter of 2024 [1][5] - The company has a record backlog of $179 billion, which is more than two and a half years of sales, indicating strong demand and growth prospects [2][5] Financial Performance - Cash from operations was $3.7 billion in Q3 2025, up from $2.4 billion in Q3 2024, while free cash flow increased to $3.3 billion from $2.1 billion [1][5][6] - The company returned $1.8 billion to shareholders through dividends and share repurchases, increasing share repurchase authority by $2 billion to a total of $9 billion [5][7] - The quarterly dividend was increased by 5% to $3.45 per share [8] Business Segments - Aeronautics sales increased by 12% to $7.3 billion in Q3 2025, driven by higher sales on the F-35 program [15][37] - Missiles and Fire Control (MFC) sales rose by 14% to $3.6 billion, attributed to production ramp-up on various missile programs [18][37] - Rotary and Mission Systems (RMS) sales were stable at $4.4 billion, while Space segment sales increased by 9% to $3.4 billion [20][22][37] Operating Profit - Total business segment operating profit for Q3 2025 was $2.0 billion, a 9% increase from $1.9 billion in Q3 2024 [12][37] - Aeronautics operating profit increased by 3% to $682 million, while MFC's operating profit rose by 12% to $510 million [15][19][37] - Space segment operating profit increased by 22% to $331 million, reflecting strong performance in strategic and missile defense programs [22][23][37] Future Outlook - The company is investing in new digital technologies and production capacity to meet defense priorities [3] - Lockheed Martin's disciplined capital deployment has resulted in 23 consecutive years of dividend increases, indicating a commitment to shareholder returns [3]