Lockheed Martin Corporation LMT reported third-quarter 2025 adjusted earnings of $6.95 per share, which beat the Zacks Consensus Estimate of $6.33 by 9.8%. The bottom line increased 2.2% from the year-ago quarter's reported figure of $6.80.
The year-over-year improvement in earnings was primarily driven by higher revenues and operating profit generated in the third quarter of 2025 compared with the prior-year quarter.
Operational Highlights of Lockheed
Net sales were $18.61 billion, which beat the Zacks Consensus Estimate of $18.56 billion by 0.3%. The top line also inched up 8.8% from $17.10 billion reported in the year-ago quarter.
The year-over-year improvement was driven by higher sales growth registered by LMT’s business segments.
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 Sept. 28, 2025, was $179.07 billion compared with $176.04 billion as of Dec. 31, 2024.
The Aeronautics segment accounted for $47.51 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $45.91 billion. The Rotary and Mission Systems segment contributed $47.27 billion, while the Space unit accounted for $38.39 billion.
Lockheed’s Segmental Performance
Aeronautics: Sales increased 11.9% year over year to $7.26 billion. This rise was driven by higher sales volume from the F-35 program.
The segment reported an operating profit of $682 million compared with an operating profit of $659 million in the year-ago quarter. The operating margin, however, contracted 80 basis points (bps) to 9.4%.
Missiles and Fire Control: Quarterly sales improved a solid 14.1% year over year to $3.62 billion. This was on account of higher sales from tactical and strike missile programs.
The segment’s operating profit increased 11.8% year over year to $510 million. The operating margin, however, contracted 30 basis points to 14.1%.
Space: The top line improved 9.1% year over year to $3.36 billion, driven by higher sales from strategic and missile defense programs.
The segment’s operating profit increased 21.7% to $331 million. The operating margin also expanded 110 bps to 9.9%.
Rotary and Mission Systems: Quarterly revenues increased 0.1% to $4.37 billion on a year-over-year basis, driven by higher sales from Sikorsky helicopter programs.
The segment reported an operating profit of $506 million compared with an operating profit of $483 million in the third quarter of 2024. The operating margin also expanded 50 bps to 11.6%.
Financial Condition of LMT
Lockheed’s cash and cash equivalents totaled $3.47 billion as of Sept. 28, 2025, compared with $2.48 billion at the end of 2024.
Cash from operating activities amounted to $5.34 billion as of Sept. 28, 2025, compared with $5.95 billion a year ago.
Long-term debt as of Sept. 28, 2025, totaled $20.52 billion, down from $19.63 billion as of Dec. 31, 2024.
Lockheed’s 2025 Guidance
Lockheed now expects to generate sales in the range of $74.25-$74.75 billion in 2025, narrower than its earlier estimate of $73.75-$74.75 billion. The Zacks Consensus Estimate is pegged at $74.20 billion, which lies below the midpoint of the company’s sales guidance.
LMT has raised its adjusted earnings per share (EPS) guidance. The company now expects to generate adjusted EPS in the range of $22.15-$22.35 compared with the earlier guidance of $21.70-$22.00. 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 of approximately $8.50 billion.
It continues to expect capital expenditure of approximately $1.90 billion.
Lockheed expects to generate a free cash flow of approximately $6.60 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.
Upcoming Defense Releases
The Boeing Company BA is set to report third-quarter 2025 earnings on Oct. 29, 2025, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at $1.83 per share. The consensus mark for sales is pinned at $21.64 billion, indicating year-over-year growth of 21.3%.
General Dynamics GD is set to report third-quarter 2025 earnings on Oct. 24, 2025, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.73 per share, indicating year-over-year growth of 11.3%. The consensus estimate for sales is pinned at $12.61 billion, indicating year-over-year growth of 8.1%.
Textron Inc. TXT is set to report its third-quarter 2025 results on Oct. 23, before market open.
The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.47 per share, indicating year-over-year growth of 5%. The consensus estimate for sales is pinned at $3.71 billion, indicating year-over-year growth of 8.1%.
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