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Jun 29, 2025
Lockheed Martin Q2 2025 Earnings Report
Lockheed Martin reported lower earnings in Q2 2025 due to heavy program charges but maintained full-year guidance.
Key Takeaways
Lockheed Martin posted $18.2B in revenue and $342M in net income for Q2 2025, with EPS dropping to $1.46 due to $1.6B in program losses. Adjusted EPS excluding these charges was approximately $7.29. Despite the hit, the company reaffirmed its 2025 guidance, citing strong defense demand.
Reported $18.2B in sales, slightly up from Q2 2024
EPS fell to $1.46 due to $1.6B in program losses and other charges
Free cash flow turned negative at -$150M compared to $1.5B last year
Reaffirmed full-year 2025 sales and cash flow guidance despite challenges
Revenue by Segment
Forward Guidance
Lockheed Martin reaffirmed its 2025 guidance, expecting $73.75B-$74.75B in sales and $6.6B-$6.8B in free cash flow despite current program losses.
Positive Outlook
- Reaffirmed 2025 sales guidance of ~$74B
- Maintained free cash flow outlook of $6.6B-$6.8B
- Strong demand for defense programs including F-35 and missile systems
- Significant infrastructure and innovation investments ($800M this quarter)
- Heightened interest and demand expected to drive growth inflection
Challenges Ahead
- Recorded $1.6B in program losses impacting profitability
- Free cash flow turned negative this quarter (-$150M)
- Cash from operations significantly down to $201M
- Legacy program execution challenges at Aeronautics and Sikorsky
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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