Lockheed Martin Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - Lockheed Martin Corporation reported a strong financial performance for the fourth quarter of 2025, with sales of $20.3 billion, a 9.2% increase from $18.6 billion in the same quarter of 2024. Net earnings reached $1.3 billion, or $5.80 per share, compared to $527 million, or $2.22 per share, in the previous year [1][6][12] Financial Performance - The company achieved a total sales increase of 6% year-over-year, reaching $75.0 billion in 2025, up from $71.0 billion in 2024 [6][19] - Net earnings for 2025 were $5.0 billion, or $21.49 per share, which included a pension settlement charge of $479 million [6][10] - Cash from operations was $8.6 billion in 2025, with free cash flow of $6.9 billion after a pension contribution of $860 million [6][8] Operational Highlights - Lockheed Martin's backlog reached a record $194 billion at the end of 2025, indicating strong demand for its products and services [2][6] - The company invested over $3.5 billion in production capacity and next-generation technologies throughout 2025 to meet increasing demand [2][3] Segment Performance - Aeronautics segment sales increased to $8.5 billion in Q4 2025, up from $8.0 billion in Q4 2024, driven by higher sales on classified programs and the F-35 program [17][18] - The Missiles and Fire Control segment saw sales rise to $4.0 billion in Q4 2025, an 18% increase from $3.4 billion in Q4 2024, attributed to production ramp-up in tactical and strike missile programs [21][22] - Rotary and Mission Systems segment sales were $4.6 billion in Q4 2025, up from $4.3 billion in Q4 2024, primarily due to higher sales on Integrated warfare systems and Sikorsky helicopter programs [25][26] - Space segment sales increased to $3.2 billion in Q4 2025, compared to $2.9 billion in Q4 2024, driven by higher sales volume for strategic and missile defense programs [29][30] 2026 Financial Outlook - The company expects sales for 2026 to be between $77.5 billion and $80.0 billion, with business segment operating profit projected between $8.4 billion and $8.7 billion [12][38] - Free cash flow is anticipated to be between $6.5 billion and $6.8 billion for 2026, reflecting continued strong operational performance [12][39]