Lockheed Martin (LMT) Q3 2025 Financial Results Summary
BETHESDA, Md., Oct. 21, 2025 – Lockheed Martin Corporation [NYSE: LMT] reported its third quarter 2025 financial results, highlighting significant increases in sales and cash flow compared to the same quarter in the previous year.
Key Financial Highlights:
- Sales:
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$18.6 billion in Q3 2025, up 8.8% from $17.1 billion in Q3 2024.
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Net Earnings:
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$1.6 billion, or $6.95 per share, compared to $1.6 billion, or $6.80 per share, in the same quarter last year, marking an increase of 2.2% in earnings per share.
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Cash Flow:
- Cash from operations totaled $3.7 billion, significantly up from $2.4 billion in Q3 2024.
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Free cash flow reached $3.3 billion, an increase of 59% from $2.1 billion the previous year.
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Dividends and Share Repurchase:
- The board approved a 5% increase in the quarterly dividend to $3.45 per share from the previous $3.30.
- Returned $1.8 billion to shareholders via dividends and share repurchases.
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Increased share repurchase authority by $2 billion, bringing the total authorization to $9 billion.
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Backlog:
- Record backlog of $179 billion, indicating strong demand and good long-term growth potential for the company.
Segment Financial Results:
- Aeronautics:
- Sales surged to $7.3 billion, up 12% from $6.5 billion a year prior.
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Operating profit was $682 million, a 3% increase from $659 million in Q3 2024.
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Missiles and Fire Control (MFC):
- Sales increased by 14% to $3.6 billion.
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Operating profit rose to $510 million, reflecting a 12% increase from $456 million in the previous year.
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Rotary and Mission Systems (RMS):
- Total sales were consistent at $4.4 billion.
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Operating profit climbed 5% to $506 million from $483 million in Q3 2024.
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Space:
- Sales rose to $3.4 billion, up 9% year-over-year.
- Operating profit increased by 22% to $331 million, compared to $272 million last year.
Cash Activities and Investments:
- Payable cash dividends totaled $765 million in the quarter.
- Repurchased 2.3 million shares for $1.0 billion.
- Paid off $1.4 billion in commercial paper.
- Issued new debt with net proceeds of $1.985 billion.
Updated Financial Outlook for 2025:
Lockheed Martin updated its 2025 financial outlook, projecting:
- Sales: Approximately $74.25 billion to $74.75 billion.
- Diluted EPS: Estimated between $22.15 and $22.35.
- Free Cash Flow: Expected around $6.6 billion.
- Cash from Operations: Anticipated at $8.5 billion.
Conclusion
Lockheed Martin’s third quarter results reinforce its robust financial health characterized by record revenues, increased profitability, and strong cash flow. The company’s strategic positioning, demonstrated by its record backlog and business growth across segments, sets a favorable outlook for future performance. The increase in dividends and share repurchase authority highlights an ongoing commitment to shareholder value.
| Quarters Ended | Nine Months Ended | |||
|---|---|---|---|---|
| Sept. 28, 2025 | Sept. 29, 2024 | Sept. 28, 2025 | Sept. 29, 2024 | |
| Sales | $18,609 | $17,104 | $54,727 | $52,421 |
| Operating costs and expenses | -16,369 | -14,987 | -49,430 | -46,181 |
| Gross profit | 2,240 | 2,117 | 5,297 | 6,240 |
| Other income, net | 40 | 23 | 103 | 77 |
| Operating profit | 2,280 | 2,140 | 5,400 | 6,317 |
| Interest expense | -286 | -256 | -828 | -772 |
| Non-service FAS pension (expense) income | -99 | 16 | -296 | 47 |
| Other non-operating income, net | 43 | 18 | 115 | 109 |
| Earnings before income taxes | 1,938 | 1,918 | 4,391 | 5,701 |
| Income tax expense | -319 | -295 | -718 | -892 |
| Net earnings | $1,619 | $1,623 | $3,673 | $4,809 |
| Effective tax rate | 16.5% | 15.4% | 16.4% | 15.6% |
| Earnings per common share | ||||
| Basic | $6.98 | $6.83 | $15.74 | $20.12 |
| Diluted | $6.95 | $6.80 | $15.69 | $20.05 |
| Weighted average shares outstanding | ||||
| Basic | 231.9 | 237.5 | 233.3 | 239.0 |
| Diluted | 232.8 | 238.6 | 234.1 | 239.9 |
| Common shares reported in stockholders’ equity at end of period | 230 | 236 | ||
| Sept. 28, 2025 | Dec. 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $3,470 | $2,483 |
| Receivables, net | 3,844 | 2,351 |
| Contract assets | 13,949 | 12,957 |
| Inventories | 3,749 | 3,474 |
| Other current assets | 924 | 584 |
| Total current assets | 25,936 | 21,849 |
| Property, plant and equipment, net | 8,722 | 8,726 |
| Goodwill | 11,313 | 11,067 |
| Intangible assets, net | 1,943 | 2,015 |
| Deferred income taxes | 3,413 | 3,557 |
| Other noncurrent assets | 8,949 | 8,403 |
| Total assets | $60,276 | $55,617 |
| Liabilities and equity | ||
| Current liabilities | ||
| Accounts payable | $3,834 | $2,222 |
| Salaries, benefits and payroll taxes | 3,065 | 3,125 |
| Contract liabilities | 10,259 | 9,795 |
| Current maturities of long-term debt | 1,669 | 643 |
| Other current liabilities | 4,147 | 3,635 |
| Total current liabilities | 22,974 | 19,420 |
| Long-term debt, net | 20,520 | 19,627 |
| Accrued pension liabilities | 4,861 | 4,791 |
| Other noncurrent liabilities | 5,740 | 5,446 |
| Total liabilities | 54,095 | 49,284 |
| Stockholders’ equity | ||
| Common stock, $1 par value per share | 230 | 234 |
| Additional paid-in capital | — | — |
| Retained earnings | 14,053 | 14,551 |
| Accumulated other comprehensive loss | -8,102 | -8,452 |
| Total stockholders’ equity | 6,181 | 6,333 |
| Total liabilities and equity | $60,276 | $55,617 |
