Lockheed's Q4 Earnings Miss Estimates, Sales Increase Year Over Year

Lockheed Martin Corporation LMT 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 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 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 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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