Lockheed Martin recorded a 4 percent year-over-year increase in fiscal 2025 first-quarter sales to $18 billion, a total backlog of $173 billion and Q1 net earnings of $1.7 billion, or $7.28 per share.
In an earnings release published Tuesday, the Bethesda, Maryland-based aerospace and defense contractor said its cash from operations was $1.4 billion and free cash flow was $955 million during the first quarter of 2025.
Lockheed returned $1.5 billion to shareholders in the form of cash dividends and share repurchases.
“These solid first quarter results reinforce confidence in our ability to achieve the full year 2025 financial guidance we laid out in January, demonstrating the resilience and adaptability of Lockheed Martin’s franchises amidst a highly dynamic geopolitical and technical environment,” said Jim Taiclet, chairman, president and CEO of Lockheed and a two-time Wash100 awardee.
Q1 Financial Results of 4 Business Segments
The aeronautics business posted $7 billion in Q1 sales, up 3 percent from the prior-year period. The company linked the growth to a $215 million increase in sales from the F-35 fighter jet program.
Lockheed’s missiles and fire control business saw its sales climb 13 percent to about $3.4 billion. The company attributed the increase to higher sales recorded by tactical and strike missile programs due to the production ramp-up on the Long Range Anti-Ship Missile, Joint Air-to-Surface Standoff Missile and precision fire programs.
The first-quarter sales of the rotary and mission systems segment increased 6 percent to $4.3 billion. The growth was driven by higher sales on integrated warfare systems and sensors programs and Sikorsky helicopter programs.
The space segment’s Q1 sales dropped 2 percent to $3.2 billion. The company attributed the decline to lower sales on national security space programs.
CEO Jim Taiclet on Golden Dome
During the quarterly earnings call, Taiclet discussed how Lockheed’s 21st Century Security Strategy and current programs could contribute to the Trump administration’s Golden Dome for America project, which seeks to quickly detect, track and counter hypersonic missiles, drone swarms and other aerial threats.
In January, President Trump signed an executive order to deploy and maintain a next-generation missile defense shield to protect the U.S. and critical infrastructure from foreign aerial attacks.
“Our 21st century security strategy, where we integrate existing and new satellites, aircraft, ships, missile launchers, and command and control systems with constantly upgradable digital technologies, was tailor-made for Golden Dome,” Taiclet told analysts.
At the call, the chief executive cited the importance of 5G, artificial intelligence and distributed cloud to help develop a “web of layered defenses” to support the ground segment for Golden Dome.
He also mentioned the need for an “overarching command and control system” and how Lockheed’s space-based assets could support the proposed missile defense shield.
“So, I think we’re in excellent shape for Golden Dome … Our strategy was built for something like Golden Dome, and we’re out in front of it with our customers. Budgeting, timing, congressional funding, all those kinds of things are government policies that will be implemented on their side, but we are literally ready to go when the starting gun goes off,” the Lockheed official noted.