Lockheed Martin reported strong full-year 2025 results characterized by significant sales growth and robust free cash flow generation, driven by unprecedented demand for its defense capabilities. The company highlighted investments in production capacity and next-generation technologies, positioning itself for continued operational and financial growth in 2026.
2025 sales increased 6% to $75.0 billion, driven by strong demand and combat-proven performance.
positiveRecord backlog of $194 billion at end of 2025, indicating sustained demand.
positiveCash from operations of $8.6 billion and free cash flow of $6.9 billion in 2025, exceeding prior expectations.
positiveFourth quarter sales increased 9% year-over-year to $20.3 billion.
positiveFourth quarter net earnings of $1.3 billion, or $5.80 per share, a significant increase from $527 million, or $2.22 per share, in the prior year quarter.
positiveMissiles and Fire Control segment operating profit increased 382% year-over-year to $1.99 billion, driven by profit booking rate adjustments and higher sales.
positiveAeronautics segment operating profit decreased 17% year-over-year to $2.09 billion, primarily due to lower profit rate adjustments including reach-forward losses on a classified contract.
attentionRotary and Mission Systems segment operating profit decreased 31% year-over-year to $1.32 billion, impacted by significant decreases in profit booking rate adjustments due to losses on CMHP and TUHP programs.
attentionNet earnings for the year ended Dec. 31, 2025 included a non-operational charge of $479 million ($1.63 per share) for a pension settlement.
attentionF-35 aircraft deliveries decreased to 191 in 2025 from 110 in 2024, while F-16 deliveries remained flat and C-130J deliveries significantly decreased.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Aeronautics | N/A | — | — | — |
Missiles and Fire Control | N/A | — | — | — |
Rotary and Mission Systems | N/A | — | — | — |
Space | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
With a record $194 billion backlog, 6% year-over-year sales growth, and free cash flow generation above our prior expectation, 2025 marked a year of unprecedented demand for Lockheed Martin capabilities.
This escalating demand for our signature programs and systems has been driven by combat-proven performance over recent years that has already been again demonstrated in 2026.
To ensure we continue delivering overwhelming capability at speed and scale, we invested more than $3.5 billion during 2025 in production capacity and next-generation technologies throughout the year, underscoring our disciplined capital allocation.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.