Net earnings of $1.6 billion, or $6.95 per share
Cash from operations of $3.7 billion and free cash flow of $3.3 billion
Returned $1.8 billion of cash to shareholders through dividends and share repurchases
Increased share repurchase authority by $2 billion to a total authorization of $9 billion
Increased quarterly dividend by 5% to $3.45 per share
Record backlog of $179 billion
Updates 2025 outlook
BETHESDA, Md., Oct. 21, 2025 /PRNewswire/ -- Lockheed Martin Corporation (NYSE:LMT) today reported third quarter 2025 sales of $18.6 billion, compared to $17.1 billion in the third quarter of 2024. Net earnings in the third quarter of 2025 were $1.6 billion, or $6.95 per share, compared to $1.6 billion, or $6.80 per share, in the third quarter of 2024. Cash from operations was $3.7 billion in the third quarter of 2025, compared to $2.4 billion in the third quarter of 2024. Free cash flow was $3.3 billion in the third quarter of 2025, compared to $2.1 billion in the third quarter of 2024.
"Based on the effectiveness and reliability of our products and systems, strong demand from Lockheed Martin's customers—both in the United States and among our allies—continues. As a result of this unprecedented demand, we are increasing production capacity significantly across a wide range of our lines of business," said Lockheed Martin Chairman, President, and CEO Jim Taiclet. "Our record $179 billion backlog—more than two and a half years of sales—underscores the trust our customers place in us and underpins our company's long‑term growth prospects. Major contract awards for the CH‑53K and PAC‑3 MSE programs are the largest ever for our Rotary and Mission Systems and Missiles and Fire Control businesses, respectively. Additionally, in close collaboration with our customers, we finalized the contracts covering Lots 18 and 19 of the F‑35 early in the fourth quarter. Lockheed Martin has delivered a record 143 F‑35 Lightning II jets through the end of the third quarter.
"Looking ahead, we are investing aggressively in both new digital technologies and physical production capacity needed to meet the top defense priorities of the United States and its allies—and we are doing so in partnership with a number of leading technology partners, large and small. Major national‑defense initiatives like the Golden Dome for America demand proven leadership in a wide range of skills, including integrated air and missile defense, space warfare and highly secure command‑and‑control systems. Lockheed Martin is the capable leader and integrator across industry for these types of initiatives. Moreover, our disciplined capital deployment continues to provide robust, reliable rewards for our shareholders, highlighted by 23 consecutive years of dividend increases. Together, these results reflect a company built for performance today and poised for growth tomorrow."
Summary Financial Results
The following table presents the company's summary financial results:
(in millions, except per share data)
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
Business segment operating profit1
$ 2,029
$ 1,870
$ 4,685
$ 5,657
Unallocated items
FAS/CAS pension operating adjustment
380
406
1,138
1,218
Impairment and other charges
—
—
(66)
(87)
Intangible asset amortization expense
(70)
(61)
(197)
(183)
Other, net
(59)
(75)
(160)
(288)
Total unallocated items
251
270
715
660
Consolidated operating profit
$ 2,280
$ 2,140
$ 5,400
$ 6,317
Net earnings
$ 1,619
$ 1,623
$ 3,673
$ 4,809
Diluted earnings per share
$ 6.95
$ 6.80
$ 15.69
$ 20.05
Cash from operations
$ 3,728
$ 2,438
$ 5,338
$ 5,949
Capital expenditures
(381)
(355)
(1,186)
(1,103)
Free cash flow1
$ 3,347
$ 2,083
$ 4,152
$ 4,846
1
Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news release for more information.
Cash from operations in the third quarter of 2025 was $3.7 billion with free cash flow of $3.3 billion compared to $2.4 billion with $2.1 billion in free cash flow in the third quarter of 2024. The increase in cash from operations was primarily due to a decrease in working capital driven by the F‑35 Lots 18‑19 contract; and lower tax payments, reflecting the impact of the One Big Beautiful Bill Act (the Tax Act).
The company's cash activities in the quarter ended Sept. 28, 2025, included the following:
paying cash dividends of $765 million;
paying $1.0 billion to repurchase 2.3 million shares;
paying off $1.4 billion of commercial paper; and
receiving net proceeds from debt issuances of $1,985 million.
As previously announced on Oct. 9, 2025, the company's board authorized the repurchase of its common stock up to an additional $2.0 billion, increasing the total authorization for potential future common stock repurchases to $9.1 billion. The stock repurchase program does not have an expiration date and may be amended or terminated by the board of directors at any time. The amount of shares ultimately purchased and the timing of purchases are at the discretion of management and subject to compliance with applicable law and regulation.
Additionally, on Oct. 9, 2025, the company authorized a fourth quarter dividend payment of $3.45 per share, representing an increase of $0.15 per share, or 5%, over the prior quarterly dividend payment.
2025 Financial Outlook
The company's financial outlook for 2025 and other sections of this news release contain forward-looking statements, which reflect the company's judgment based on the information available at the time of this news release. The financial outlook for 2025 does not include potential impacts of government shutdown, or Executive Orders issued by the Administration. Additionally, it is the company's practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, future gains or losses related to changes in valuations of the company's net assets and liabilities for deferred compensation plans or early-stage company investments, pension annuity contracts or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. Actual results may differ materially from those projected. For additional factors that may impact the company's actual results, refer to the "Forward-Looking Statements" section in this news release.
(in millions, except per share data)
Current Update2
July 2025
Sales
~$74,250 - $74,750
~$73,750 - $74,750
Business segment operating profit1
~$6,675 - $6,725
~$6,600 - $6,700
Total FAS/CAS pension adjustment
~$1,125
~$1,125
Diluted earnings per share
~$22.15 - $22.35
~$21.70 - $22.00
Cash from operations
~$8,500
~$8,500 - $8,700
Capital expenditures
~$1,900
~$1,900
Free cash flow1
~$6,600
~$6,600 - $6,800
1
Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news release for more information.
2
The 2025 financial outlook incorporates the company's current assessment of the impact of tariffs and related recovery of tariffs on its contracts. However, the company cannot predict how tariffs will evolve and the actual impacts may differ from the company's expectations. It also does not include potential non-cash charges associated with the conversion of pension annuity contracts that the company may execute as early as the fourth quarter of 2025.
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company's business segments and reconciles these amounts to the company's consolidated financial results.
(in millions)
Quarters Ended
Nine Months Ended
Sept. 28,
2025
Sept. 29,
2024
Sept. 28,
2025
Sept. 29,
2024
Sales
Aeronautics
$ 7,256
$ 6,487
$ 21,733
$ 20,609
Missiles and Fire Control
3,624
3,175
10,430
9,270
Rotary and Mission Systems
4,373
4,367
12,696
13,003
Space
3,356
3,075
9,868
9,539
Total sales
$ 18,609
$ 17,104
$ 54,727
$ 52,421
Operating profit
Aeronautics
$ 682
$ 659
$ 1,304
$ 2,089
Missiles and Fire Control
510
456
1,454
1,217
Rotary and Mission Systems
506
483
855
1,408
Space
331
272
1,072
943
Total business segment operating profit
2,029
1,870
4,685
5,657
Unallocated items
FAS/CAS operating adjustment
380
406
1,138
1,218
Impairment and other charges
—
—
(66)
(87)
Intangible asset amortization expense
(70)
(61)
(197)
(183)
Other, net
(59)
(75)
(160)
(288)
Total unallocated items
251
270
715
660
Total consolidated operating profit
$ 2,280
$ 2,140
$ 5,400
$ 6,317
For information on factors impacting comparability of the company's segment sales, operating profit and operating margins, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2024.
Consolidated net profit booking rate adjustments increased segment operating profit by approximately $365 million in the quarter ended Sept. 28, 2025. Consolidated net profit booking rate adjustments increased segment operating profit by approximately $375 million in the quarter ended Sept. 29, 2024, which included an $85 million favorable profit rate adjustment for a claim associated with a contract to modernize and install new engines in C-5 Galaxy aircraft and losses of $80 million recognized on a classified program at Aeronautics.
Aeronautics
(in millions)
Quarters Ended
Nine Months Ended
Sept. 28,
2025
Sept. 29,
2024
Sept. 28,
2025
Sept. 29,
2024
Sales
$ 7,256
$ 6,487
$ 21,733
$ 20,609
Operating profit
682
659
1,304
2,089
