Core Viewpoint - Lockheed Martin Corp. is facing increased scrutiny from Wall Street after reporting mixed second-quarter results and incurring nearly $1.6 billion in charges across key segments, leading to lowered earnings forecasts and price targets from analysts [1][4]. Financial Performance - Lockheed reported net sales of $18.16 billion, slightly below estimates, while adjusted EPS was $7.29, exceeding the consensus of $6.63. However, GAAP earnings fell sharply to $1.46 per share from $6.63 a year ago due to charges related to cost overruns and schedule delays in legacy programs [6]. - Operating margin decreased significantly to 4.1% from 11.9%, and free cash flow turned negative at $150 million. The company reaffirmed its 2025 sales guidance of $73.75 billion to $74.75 billion and free cash flow outlook of $6.6 billion to $6.8 billion, but lowered its GAAP EPS forecast to $21.70-$22.00 from over $27 previously [7]. Analyst Ratings and Price Targets - Goldman Sachs analyst Noah Poponak reiterated a Sell rating and reduced the 12-month price target to $398 from $406, citing ongoing issues that could impact profits and cash flow [1][4]. - Other analysts have also expressed caution, with Susquehanna lowering its forecast from $550 to $490, RBC Capital from $480 to $440, and Truist downgrading from Buy to Hold with a forecast cut from $554 to $440 [11]. Segment Challenges - The recent charges in classified Aeronautics and helicopter programs within Rotary and Mission Systems (RMS) are expected to lower segment margin expectations and potentially drag free cash flow down beyond 2025 [2]. - Risks associated with the Next Generation Air Dominance (NGAD) program losses and uncertainty regarding future F-35 funding pose threats to a significant portion of Lockheed's earnings base [3]. IRS Dispute and Strategic Discussions - Lockheed's CFO confirmed that the IRS is seeking $4.6 billion in additional income taxes, which the company is challenging through the IRS Independent Office of Appeals and is prepared to pursue judicial action if necessary [8]. - CEO James Taiclet confirmed ongoing discussions with U.S. officials regarding the proposed $175 billion 'Golden Dome' missile shield, stating that Lockheed is fully committed to the concept, although no contracts have been awarded yet [9]. Stock Performance - Lockheed Martin's stock reached a 52-week high of $618.95 on October 21, 2024, and a low of $410.11 on July 22, 2025, marking an approximate 34% decline from its peak [9]. - As of the latest check, LMT shares were trading higher by 2.70% to $421.82 [10].