Lockheed Martin Q4 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: seekingalpha
- Strong Earnings Performance: Lockheed Martin reported a Q4 GAAP EPS of $5.80, beating expectations by $0.05, which underscores the company's robust profitability in the defense sector and boosts investor confidence.
- Significant Revenue Growth: The company achieved Q4 revenue of $20.32 billion, reflecting a 9.1% year-over-year increase and surpassing market expectations by $460 million, indicating a sustained growth momentum in the global defense market.
- Record Backlog: Lockheed Martin's backlog reached a record $194 billion at the end of 2025, highlighting strong market demand and ensuring future revenue sustainability, providing a solid foundation for the company's income.
- Optimistic 2026 Outlook: The company projects net sales for 2026 to be between $77.5 billion and $80 billion, demonstrating confidence in future business growth, while free cash flow is expected to range from $6.5 billion to $6.8 billion, further enhancing financial flexibility.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMT is 535.50 USD with a low forecast of 430.00 USD and a high forecast of 605.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 597.270
Low
430.00
Averages
535.50
High
605.00
Current: 597.270
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lockheed Martin Signs Agreement to Quadruple THAAD Interceptor Production
- Production Increase: Lockheed Martin has signed a framework agreement with the Department of War to increase the annual production of Terminal High Altitude Area Defense (THAAD) interceptors from 96 to 400, significantly enhancing U.S. missile defense capabilities and ensuring national security.
- Acceleration of Production: This agreement builds on an earlier deal signed this month to accelerate the production of PAC-3® Missile Segment Enhancement (MSE) interceptors, indicating the company's ongoing investment and technological innovation in the defense sector.
- New Facility Construction: The company will also break ground on a new Munitions Acceleration Center in Arkansas, which is expected to further enhance production efficiency and create local job opportunities, supporting the sustainable development of the defense industry.
- Strategic Collaboration: By closely collaborating with the government, Lockheed Martin not only boosts its market competitiveness but also lays a solid foundation for future defense projects, ensuring its leading position in the global defense market.
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Lockheed Martin Reports Strong Q4 Earnings, Exceeds Expectations
- Sales Growth: Lockheed Martin reported fourth-quarter sales of $20.3 billion, a 9% increase from $18.6 billion a year earlier, surpassing the market expectation of $19.86 billion, indicating strong demand in the defense sector.
- Significant Net Earnings Increase: The company posted net earnings of $1.34 billion, or $5.80 per share, a substantial rise from $527 million and $2.22 per share in the same quarter last year, reflecting a marked improvement in profitability.
- Cash Flow Improvement: Operating cash flow surged to $3.2 billion from $1.0 billion a year earlier, with free cash flow reaching $2.76 billion compared to $441 million in the prior year, showcasing enhanced financial health.
- Optimistic Future Outlook: Lockheed Martin forecasts 2026 sales between $77.5 billion and $80.0 billion, with diluted earnings per share projected at $29.35 to $30.25, indicating strong confidence in future growth and sustained market demand.
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