Lockheed Martin Corporation (LMT) Financial Results Summary

# Lockheed Martin (LMT) Q2 2025 Financial Results Summary

**Release Date:** July 22, 2025

Lockheed Martin Corporation [NYSE: LMT] reported its financial results for the second quarter of 2025, indicating several metrics that reflect challenges faced by the company amid ongoing program reviews and operational adjustments. Below is a summary of the key outcomes from the report.

### Key Financial Metrics:
– **Sales:**
– Q2 2025: $18.2 billion
– Q2 2024: $18.1 billion
– *Growth of 0.5% year-over-year*

– **Net Earnings:**
– Q2 2025: $342 million ($1.46 per share)
– Q2 2024: $1.6 billion ($6.85 per share)
– *Decrease of 79% in net earnings per share year-over-year*

– **Cash from Operations:**
– Q2 2025: $201 million
– Q2 2024: $1.9 billion
– *Decrease of 89% year-over-year*

– **Free Cash Flow:**
– Q2 2025: $(150) million
– Q2 2024: $1.5 billion
– *Decline of 110% in free cash flow year-over-year*

– **Quarterly Dividend and Share Repurchase:**
– Returned $1.3 billion to shareholders through dividends and share repurchases, including $771 million paid as cash dividends.
– Repurchased $500 million worth of stock during the quarter.

### Financial Overview:
– The report cited significant **pre-tax losses** on programs:
– Total pre-tax program losses: $1.6 billion
– Other charges: $169 million
– Combined impact on earnings per share: **$5.83**.

– **Cash Activities:**
– Cash dividends paid: $771 million
– Share repurchases accounted for $500 million.

### Segment Performance:
1. **Aeronautics:**
– Sales: $7.42 billion (Q2 2024: $7.28 billion)
– *Increase of 2% year-over-year*
– Operating (loss) profit: $(98) million (Q2 2024: $751 million)
– *Decrease of 113% year-over-year*
– Operating margin: **(1.3%)** (from 10.3% in the previous year)

2. **Missiles and Fire Control (MFC):**
– Sales: $3.43 billion (Q2 2024: $3.10 billion)
– *Increase of 11% year-over-year*
– Operating profit: $479 million (Q2 2024: $450 million)
– *Increase of 6% year-over-year*
– Operating margin: **14.0%** (from 14.5% previously)

3. **Rotary and Mission Systems (RMS):**
– Sales: $3.99 billion (Q2 2024: $4.55 billion)
– *Decrease of 12% year-over-year*
– Operating (loss) profit: $(172) million (Q2 2024: $495 million)
– *Decrease of 135% year-over-year*
– Operating margin: **(4.3%)** (from 10.9% in the previous year)

4. **Space:**
– Sales: $3.31 billion (Q2 2024: $3.20 billion)
– *Increase of 4% year-over-year*
– Operating profit: $362 million (Q2 2024: $346 million)
– *Increase of 5% year-over-year*
– Operating margin: **10.9%** (from 10.8% previously)

### Operational Challenges:
– Significant losses in the Aeronautics segment due to design and integration challenges within classified programs, leading to a realization of **$950 million** in reach-forward losses.
– Additional **$570 million** losses recognized in the Canadian Maritime Helicopter Program (CMHP), and **$95 million** losses in the Turkish Utility Helicopter Program (TUHP).

### Forward Outlook:
– Lockheed Martin has reaffirmed its guidance for 2025, indicating expectations for sales and free cash flows to remain in the previously established ranges despite current challenges.
– Investments totaling **$800 million** were made in infrastructure and innovation to support growth and operational enhancements.

In summary, while Lockheed Martin managed to improve its sales slightly year-over-year, the financial results reflect severe challenges which have significantly impacted profitability and cash flows. The company continues to focus on its operational strategies and shareholder returns amidst these pressures.

Here are the extracted tables in Markdown format:

### Consolidated Statements of Earnings (in millions)

—

### Consolidated Balance Sheets (in millions)