LMT
Lockheed Martin Corporation477.06
-7.36-1.52%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Cap alloc prioritizes growth investments
Q&A spotlighted Lockheed's dynamic capital allocation tilting toward capex and self-funded R&D—like drone wingmen, COMET missiles, and space interceptors—over full FCF returns to shareholders amid multiyear PAC-3/THAAD frameworks. Management detailed make-whole protections if buys change, profit-sharing incentives, and just 20-30bps initial MFC margin dip before expansion with double-digit growth. They pushed F-35 multiyears and committed $1B to sustainment. Capex trumps buybacks now. Aero classified drew no new charges. Confident tone; watch 2026 buyback moves and MFC ramps.
Key Stats
Market Cap
111.38BP/E (TTM)
26.59Basic EPS (TTM)
17.94Dividend Yield
0.03%Recent Filings
8-K
2025 sales up 6%, record backlog
10-K
FY2025 results
Lockheed Martin posted $75.0B in FY2025 sales, up 6% y/y, with Q4 momentum in missiles and F-35 sustainment driving the gains amid ramped production. Yet classified programs hammered profits—$950M Aeronautics reach-forward loss in Q2, plus $570M on Canadian helicopters and $95M Turkish utility—slashing operating profit 10% to $7.7B despite favorable F-35 mix. Free cash flow surged to $6.9B (derived), fueled by $8.6B operating cash, while $3.0B share repurchases and $3.1B dividends underscored capital returns; debt stood at $21.7B net with ample revolver capacity. Backlog swelled 10% to $193.6B. Q4 accelerated tactical missile volume. U.S. Government funding delays risk quarterly momentum.
8-K
Pension buy-out executed
Lockheed Martin executed buy-out conversions of group annuity contracts on December 16, 2025, transferring $900 million in gross pension obligations for 9,000 U.S. retirees to insurers. No additional costs or funding required. It triggers a $480 million non-cash pretax settlement charge in Q4 2025. Pension risk drops sharply.
8-K
New $3B revolver secured
Lockheed Martin inked a $3.0 billion 364-day unsecured revolver on December 5, 2025, maturing December 4, 2026, with an optional one-year term-out to 2027. Backed by top banks like BofA and JPM, it funds general corporate needs, including commercial paper. No draws yet. Flexible liquidity, standard covenants.
8-K
Q3 sales up 9%, record backlog
Lockheed Martin posted third-quarter 2025 sales of $18.6 billion, up 9% from $17.1 billion last year, fueled by F-35 volume and missile production ramps. Net earnings held steady at $1.6 billion, or $6.95 per share, while cash from operations surged to $3.7 billion, enabling $1.8 billion in shareholder returns. Backlog hit a record $179 billion. Strong demand drives growth, but tariff impacts loom.
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