Lockheed Martin Corp. reported fourth‑quarter 2025 results that surpassed consensus expectations, with revenue of $20.32 billion—up 9.1% year‑over‑year—and earnings per share of $5.80. The company beat the consensus revenue estimate of $19.85‑$19.86 billion by roughly $450 million and exceeded the EPS estimate of $5.75‑$5.76 by $0.04‑$0.05, a 0.9% beat.
The revenue growth was driven primarily by the Aeronautics and Missiles & Fire Control segments, where demand for the F‑35 fighter jet and missile defense systems remained robust. Higher sales volume in these core programs offset the absence of the one‑time classified‑program losses that weighed on the prior year’s results. The company’s record $194 billion backlog further underpins the revenue trajectory and signals continued demand.
Comparing to the previous year, Q4 2024 revenue was $18.6 billion and EPS was $2.22, illustrating a sharp acceleration in both top‑line and profitability. The jump in earnings is largely attributable to the elimination of the $1.7 billion classified‑program charge that depressed Q4 2024 net income.
Operating margin expanded to 11.5% from 3.7% a year earlier, while the free‑cash‑flow margin rose to 15.8% from 2.4%. The margin improvement reflects disciplined cost management, a favorable mix of high‑margin defense contracts, and the absence of the prior year’s extraordinary losses.
Management guided for 2026 sales of $77.5‑$80 billion, EPS of $29.35‑$30.25, and free cash flow of $6.5‑$6.8 billion—figures that exceed analyst expectations and demonstrate confidence in sustained demand and operational efficiency.
Jim Taiclet, Chairman, President and CEO, said, “With a record $194 billion backlog, 6% year‑over‑year sales growth, and free‑cash‑flow generation above our prior expectation, 2025 marked a year of unprecedented demand for Lockheed Martin capabilities.” He added that the company is investing billions to accelerate munition production across five states, underscoring a strategic focus on high‑growth defense programs.
Investors responded favorably to the results, citing the revenue beat, the sharp rebound in profitability, the robust backlog, and the optimistic 2026 guidance as key drivers of confidence in Lockheed Martin’s continued growth trajectory.
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