Lockheed Martin Reports Strong Earnings Beat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: seekingalpha
- Strong Earnings: Lockheed Martin reported a GAAP EPS of $5.80, beating expectations by $0.05, which underscores the company's robust performance in the defense sector and solidifies its market leadership.
- Revenue Growth: The company achieved revenue of $20.32 billion, exceeding market expectations by $460 million, reflecting widespread demand for Lockheed Martin's products and services amid rising global defense needs.
- THAAD Expansion Agreement: Lockheed Martin signed an agreement to expand THAAD interceptor output, indicating proactive positioning in response to geopolitical uncertainties, which is expected to drive future revenue growth.
- Positive Market Reaction: Although the stock shows signs of being overbought, the strong earnings report and expansion plans may attract more investor interest, enhancing the company's competitive edge in the defense industry.
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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 Q4 2025 Earnings Call Highlights
- Record Backlog: Lockheed Martin ended the year with a backlog of $194 billion, approximately 2.5 times its annual sales, reflecting a robust 6% year-over-year growth and strong demand for defense technologies.
- Production Capacity Expansion: The company plans to increase annual production of PAC-3 MSE interceptors from 600 to 2,000 units under a long-term multiyear agreement, significantly enhancing production efficiency to meet Department of Defense requirements.
- Strong Financial Performance: Q4 2025 sales reached $20.3 billion, up 9% year-over-year, with full-year sales hitting $75 billion and an 11% increase in operating profit, demonstrating solid growth across all business areas.
- Optimistic Future Outlook: Management expects 2026 sales to range from $77.5 billion to $80 billion, with a 35% increase in internal investment to nearly $5 billion, indicating strong confidence in future growth and strategic positioning.
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