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Lockheed's Q4 Earnings Miss Estimates, Sales Increase Year Over Year
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Key Takeaways
LMT reported Q4 sales of $20.32B, up 9.1% year over year, while adjusted EPS rose sharply from last year.
LMT saw growth across Aeronautics, Missiles and Fire Control, Space, and Rotary and Mission Systems segments.
LMT's backlog climbed to $193.62B and 2026 guidance calls for higher sales, earnings, and cash flow.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2025 adjusted earnings of $5.80 per share, which missed the Zacks Consensus Estimate of $6.24 by 7.1%. The bottom line increased 161.3% from the year-ago quarter's reported figure of $2.22.
The year-over-year improvement in earnings was primarily driven by higher revenues and operating profit generated in the fourth quarter of 2025 compared with the prior-year quarter.
LMT reported 2025 adjusted earnings of $21.49 per share, which came in lower than the year-ago figure of $22.31. The bottom-line figure surpassed the Zacks Consensus Estimate of $21.90.
Operational Highlights of Lockheed
Net sales were $20.32 billion, which beat the Zacks Consensus Estimate of $19.83 billion by 2.5%. The top line also inched up 9.1% from $18.62 billion reported in the year-ago quarter.
The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
The company reported sales of $75.05 billion in 2025, which were higher than $71.04 billion in 2024. The full-year top-line figure beat the Zacks Consensus Estimate of $74.55 billion.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
LMT’s backlog as of Dec. 31, 2025, was $193.62 billion compared with $176.04 billion as of Dec. 31, 2024.
The Aeronautics segment accounted for $59.44 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $46.65 billion. The Rotary and Mission Systems segment contributed $47.72 billion, while the Space unit accounted for $39.82 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales increased 6.4% year over year to $8.52 billion. This rise was driven by higher sales volume from the F-35 program.
The segment reported an operating profit of $782 million compared with $434 million in the year-ago quarter. The operating margin expanded 380 basis points (bps) to 9.2%.
Missiles and Fire Control: Quarterly sales improved a solid 17.8% year over year to $4.02 billion. This was on account of higher sales from tactical and strike missile programs.
The segment’s operating profit increased to $535 million against an operating loss of $804 in the prior-year quarter.
Space: The top line improved 7.5% year over year to $3.16 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased to $273 million. The operating margin contracted 100 bps to 8.6%.
Rotary and Mission Systems: Quarterly revenues increased 8.3% to $4.62 billion on a year-over-year basis, driven by higher sales from Integrated warfare systems and sensors, Sikorsky helicopter programs and radar programs.
The segment reported an operating profit of $468 million compared with $513 million in the fourth quarter of 2024. The operating margin contracted 190 bps to 10.1%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $4.12 billion as of Dec. 31, 2025, compared with $2.48 billion at the end of 2024.
Cash from operating activities amounted to $8.56 billion as of Dec. 31, 2025, compared with $6.97 billion a year ago.
Long-term debt as of Dec. 31, 2025, totaled $20.53 billion, up from $19.63 billion as of Dec. 31, 2024.
Lockheed’s 2026 Guidance
Lockheed expects to generate sales in the range of $77.5-$80.0 billion in 2026. The Zacks Consensus Estimate is pegged at $74.20 billion, which lies below the midpoint of the company’s sales guidance.
LMT expects to generate adjusted EPS in the range of $29.35-$30.25. The consensus estimate is currently pegged at $21.86 per share, which lies lower than the company’s newly guided range.
Lockheed expects to generate cash from operations in the range of $9.15-$9.45 billion.
It expects capital expenditure of approximately $2.50-$2.80 billion.
Lockheed expects to generate a free cash flow of approximately $6.50-$6.80 billion.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.
Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.
RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.
NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.
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Lockheed's Q4 Earnings Miss Estimates, Sales Increase Year Over Year
Key Takeaways
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2025 adjusted earnings of $5.80 per share, which missed the Zacks Consensus Estimate of $6.24 by 7.1%. The bottom line increased 161.3% from the year-ago quarter's reported figure of $2.22.
The year-over-year improvement in earnings was primarily driven by higher revenues and operating profit generated in the fourth quarter of 2025 compared with the prior-year quarter.
LMT reported 2025 adjusted earnings of $21.49 per share, which came in lower than the year-ago figure of $22.31. The bottom-line figure surpassed the Zacks Consensus Estimate of $21.90.
Operational Highlights of Lockheed
Net sales were $20.32 billion, which beat the Zacks Consensus Estimate of $19.83 billion by 2.5%. The top line also inched up 9.1% from $18.62 billion reported in the year-ago quarter.
The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
The company reported sales of $75.05 billion in 2025, which were higher than $71.04 billion in 2024. The full-year top-line figure beat the Zacks Consensus Estimate of $74.55 billion.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote
LMT’s Backlog
LMT’s backlog as of Dec. 31, 2025, was $193.62 billion compared with $176.04 billion as of Dec. 31, 2024.
The Aeronautics segment accounted for $59.44 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $46.65 billion. The Rotary and Mission Systems segment contributed $47.72 billion, while the Space unit accounted for $39.82 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales increased 6.4% year over year to $8.52 billion. This rise was driven by higher sales volume from the F-35 program.
The segment reported an operating profit of $782 million compared with $434 million in the year-ago quarter. The operating margin expanded 380 basis points (bps) to 9.2%.
Missiles and Fire Control: Quarterly sales improved a solid 17.8% year over year to $4.02 billion. This was on account of higher sales from tactical and strike missile programs.
The segment’s operating profit increased to $535 million against an operating loss of $804 in the prior-year quarter.
Space: The top line improved 7.5% year over year to $3.16 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased to $273 million. The operating margin contracted 100 bps to 8.6%.
Rotary and Mission Systems: Quarterly revenues increased 8.3% to $4.62 billion on a year-over-year basis, driven by higher sales from Integrated warfare systems and sensors, Sikorsky helicopter programs and radar programs.
The segment reported an operating profit of $468 million compared with $513 million in the fourth quarter of 2024. The operating margin contracted 190 bps to 10.1%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $4.12 billion as of Dec. 31, 2025, compared with $2.48 billion at the end of 2024.
Cash from operating activities amounted to $8.56 billion as of Dec. 31, 2025, compared with $6.97 billion a year ago.
Long-term debt as of Dec. 31, 2025, totaled $20.53 billion, up from $19.63 billion as of Dec. 31, 2024.
Lockheed’s 2026 Guidance
Lockheed expects to generate sales in the range of $77.5-$80.0 billion in 2026. The Zacks Consensus Estimate is pegged at $74.20 billion, which lies below the midpoint of the company’s sales guidance.
LMT expects to generate adjusted EPS in the range of $29.35-$30.25. The consensus estimate is currently pegged at $21.86 per share, which lies lower than the company’s newly guided range.
Lockheed expects to generate cash from operations in the range of $9.15-$9.45 billion.
It expects capital expenditure of approximately $2.50-$2.80 billion.
Lockheed expects to generate a free cash flow of approximately $6.50-$6.80 billion.
LMT’s Zacks Rank
LMT currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.
Revenues amounted to $23.95 billion, which outpaced the consensus estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.
RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted EPS of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.
RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.
NOC’s total sales of $11.71 billion in the fourth quarter beat the consensus estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.