In This Article:
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Sales Growth: 4% year-over-year increase in sales for Q1 2025.
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Segment Operating Margin: 11.6% with all business areas generating double-digit returns.
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GAAP Earnings Per Share: $7.28, a 14% increase year-over-year.
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Backlog: Approximately $173 billion.
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Free Cash Flow: $955 million generated in Q1 2025.
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Shareholder Returns: $1.5 billion returned through dividends and share repurchases.
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Aeronautics Sales: $7.1 billion, a 3% increase year-over-year.
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Missiles and Fire Control Sales: 13% increase driven by tactical and strike missile programs.
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Rotary and Mission Systems Sales: 6% increase to $4.3 billion.
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Space Sales: 2% decrease year-over-year.
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Investment in R&D and CapEx: Nearly $850 million in Q1 2025.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lockheed Martin Corp (NYSE:LMT) reported a 4% year-over-year increase in sales for the first quarter of 2025, demonstrating continued growth momentum.
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The company generated $955 million in free cash flow, after investing $850 million in R&D and capital expenditures.
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Lockheed Martin Corp (NYSE:LMT) returned $1.5 billion to shareholders through dividends and share repurchases during the quarter.
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The company secured several large missile program awards, including contracts for precision strike missiles, THAAD, and joint air-to-surface standoff missiles, totaling up to $10 billion in future work.
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Lockheed Martin Corp (NYSE:LMT) maintained a strong backlog of approximately $173 billion, providing a solid foundation for sustained growth.
Negative Points
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The book-to-bill ratio was less than 1 in the quarter, indicating that new orders did not keep pace with sales.
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Lockheed Martin Corp (NYSE:LMT) faces potential impacts from tariffs and the NGAD program decision, although the company is confident in mitigating these effects.
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Space sales decreased by 2% year-over-year due to lower volume at National Security Space, primarily related to the overhead persistent infrared radar program.
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The company is navigating a dynamic tariff environment, which could lead to timing issues in cost recovery.
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Lockheed Martin Corp (NYSE:LMT) did not win the NGAD contract, and while they are not protesting the decision, it could impact future growth opportunities.
Q & A Highlights
Q: Jim, regarding the NGAD decision, have you received feedback from the Air Force, and are you considering protesting the award? A: Yes, we received a classified debrief from the US Air Force. We are not protesting the NGAD decision. Instead, we are focusing on applying the technologies developed for NGAD to enhance our F-35 and F-22 platforms, aiming for 80% of sixth-gen capability at 50% of the cost.