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Dec 31, 2025
Lockheed Martin Q4 2025 Earnings Report
Lockheed Martin reported its financial results for the fourth quarter of 2025, with sales increasing by 9% and diluted earnings per share rising significantly compared to the same period in the previous year.
Key Takeaways
Lockheed Martin delivered a strong fourth quarter in 2025, with sales reaching $20.321 billion, a 9% increase year-over-year. Diluted earnings per share surged to $5.80, up from $2.22 in Q4 2024, despite a non-operational pension settlement charge. The company also reported a record backlog of $194 billion, reflecting robust demand for its capabilities.
Sales for Q4 2025 increased by 9% to $20.321 billion, driven by higher volumes in Aeronautics and Missiles and Fire Control.
Diluted earnings per share for Q4 2025 were $5.80, a substantial increase from $2.22 in Q4 2024, even with a pension settlement charge.
Operating profit for the quarter significantly improved to $2.331 billion, up 235% from $696 million in Q4 2024, largely due to higher profit rate adjustments.
The company ended 2025 with a record backlog of $193.622 billion, indicating strong future revenue potential.
Revenue by Segment
Forward Guidance
Lockheed Martin projects continued operational and financial growth for 2026, with anticipated increases in sales, operating profit, and free cash flow, driven by strong demand and strategic investments.
Positive Outlook
- Expected sales between $77.5 billion and $80.0 billion for 2026, indicating continued growth.
- Anticipated business segment operating profit between $8.425 billion and $8.675 billion, reflecting improved profitability.
- Projected free cash flow between $6.5 billion and $6.8 billion, an increase from prior expectations.
- Diluted earnings per share expected to be between $29.35 and $30.25, signaling strong shareholder returns.
- Continued emphasis on operational performance and alignment with national defense priorities to deliver superior capabilities.
Challenges Ahead
- The financial outlook does not include potential impacts of government shutdown or Executive Orders.
- Potential impacts from proposed or potential acquisitions, divestitures, ventures, or future gains/losses related to changes in valuations of net assets and liabilities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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