Summary
Lockheed Martin Corporation (LMT) reported a challenging second quarter for 2025, with net earnings declining significantly year-over-year. Sales remained relatively flat for the quarter, but a substantial increase in operating costs and expenses, particularly driven by significant program losses in Aeronautics and RMS, severely impacted profitability. The company incurred substantial reach-forward losses on classified programs in Aeronautics and the Canadian Maritime Helicopter Program (CMHP) and Turkish Utility Helicopter Program (TUHP) in RMS, leading to a dramatic decrease in operating profit for these segments and a negative operating margin for Aeronautics. Despite these significant headwinds, the Missiles and Fire Control (MFC) segment showed robust growth in both sales and operating profit, driven by production ramp-ups. The Space segment also demonstrated modest sales growth and improved operating profit. While consolidated sales were stable, the substantial charges related to program issues have materially affected the company's bottom line and diluted earnings per share. Investors should closely monitor the resolution and future impacts of these major program losses, as well as ongoing supply chain and macroeconomic pressures, which continue to influence the company's financial performance.
Financial Highlights
46 data points| Revenue | $18.16B |
| Cost of Revenue | $17.42B |
| Gross Profit | $734.00M |
| Operating Income | $748.00M |
| Net Income | $342.00M |
| EPS (Basic) | $1.46 |
| EPS (Diluted) | $1.46 |
| Shares Outstanding (Basic) | 233.50M |
| Shares Outstanding (Diluted) | 234.30M |
Key Highlights
- 1Net earnings for the quarter ended June 29, 2025, were $342 million ($1.46 diluted EPS), a significant decrease from $1.64 billion ($6.85 diluted EPS) in the prior year's quarter.
- 2Total sales for the quarter were $18.16 billion, a slight increase of 0.2% compared to $18.12 billion in the prior year quarter.
- 3Operating costs and expenses increased substantially to $17.42 billion from $15.99 billion, significantly eroding gross profit and operating profit.
- 4Aeronautics segment reported an operating loss of $98 million, a sharp decline from an operating profit of $751 million in the prior year, primarily due to a $950 million reach-forward loss on a classified program.
- 5Rotary and Mission Systems (RMS) segment reported an operating loss of $172 million, compared to an operating profit of $495 million in the prior year, impacted by significant losses on the Canadian Maritime Helicopter Program (CMHP) and Turkish Utility Helicopter Program (TUHP).
- 6Missiles and Fire Control (MFC) segment showed strong performance with sales up 11% to $3.43 billion and operating profit up 6% to $479 million.
- 7The company repurchased $1.3 billion of its common stock in the six months ended June 29, 2025, and has $8.1 billion remaining under its share repurchase authorization.