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Mar 30

Lockheed Martin Q1 2025 Earnings Report

Lockheed Martin reported increased earnings and revenue in Q1 2025 driven by growth across multiple business segments.

Key Takeaways

Lockheed Martin delivered strong Q1 2025 results, with revenue reaching $18 billion and net income of $1.7 billion. Solid performance in missiles, aeronautics, and rotary systems supported earnings growth, despite a year-over-year decline in free cash flow.

Revenue rose to $18 billion, up from $17.2 billion last year

Net income increased to $1.7 billion with EPS of $7.28

Free cash flow dropped to $955 million due to timing of payments and higher software expenditures

Lockheed returned $1.5 billion to shareholders via dividends and buybacks

Total Revenue
$18B
Previous year: $17.2B
+4.5%
EPS
$7.28
Previous year: $6.33
+15.0%
Effective Tax Rate
15.9%
Previous year: 15.8%
+0.6%
Backlog
$173B
Previous year: $176B
-1.7%
Gross Profit
$2.32B
Previous year: $1.99B
+16.6%
Cash and Equivalents
$1.8B
Previous year: $2.79B
-35.4%
Free Cash Flow
$955M
Previous year: $1.26B
-24.0%
Total Assets
$56.7B
Previous year: $55B
+3.1%

Lockheed Martin

Lockheed Martin

Lockheed Martin Revenue by Segment

Forward Guidance

Lockheed Martin reaffirmed its 2025 financial outlook, expecting solid full-year performance backed by a strong backlog and operational focus.

Positive Outlook

  • Full-year revenue guidance between $73.75B and $74.75B
  • EPS forecasted between $27.00 and $27.30
  • Strong free cash flow outlook of $6.6B–$6.8B
  • Cash from operations projected at $8.5B–$8.7B
  • Strong bookings including $10B in new missile contracts

Challenges Ahead

  • Free cash flow declined YoY in Q1 due to higher software spend
  • Cash from operations dropped $226M YoY
  • Space segment saw reduced national security sales
  • No inclusion yet of impacts from recent policy shifts like NGAD
  • Potential risks from evolving geopolitical and supply chain factors

Revenue & Expenses

Visualization of income flow from segment revenue to net income