Lockheed Martin reported $75 billion in 2025 sales, up 6 percent from $71 billion recorded the previous year, and ended the year with a record backlog of $194 billion.
In an earnings release published Thursday, the Bethesda, Maryland-based aerospace and defense contractor said cash from operations was $8.6 billion and free cash flow was $6.9 billion in 2025.
The company posted $5 billion in 2025 net earnings, or $21.49 per share, and a pension contribution of $860 million.
“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,” Jim Taiclet, chairman, president and CEO of Lockheed, said in a statement.
Fourth-quarter 2025 sales hit $20.3 billion, up 9 percent from the prior-year period’s $18.6 billion.
The company’s Q4 net earnings were $1.3 billion, while its cash from operations and free cash flow were $3.2 billion and $2.8 billion, respectively, in the quarter.
What Are Lockheed’s Framework Agreements With DOW for THAAD, PAC-3 Interceptors?
Lockheed announced Thursday that it signed a framework agreement with the Department of War to increase the production of Terminal High Altitude Area Defense, or THAAD, interceptors, from 96 units per year to approximately 400 over the next seven years.
The latest move builds on a seven-year framework agreement the company signed with DOW in early January to accelerate the production of the Patriot Advanced Capability-3, also known as PAC-3, Missile Segment Enhancement interceptor from roughly 600 units per year to about 2,000.
Lockheed will begin construction work on a munitions acceleration center in Camden, Arkansas, to support the production of THAAD, PAC-3 and other capabilities using robotics, digital technologies and advanced manufacturing.
What Did Lockheed CEO Jim Taiclet Say About the DOW Framework Agreements, Golden Dome?
“These types of agreements fully support the Department of War’s acquisition transformation strategy, and we look forward to continuing our partnership with the US government to definitize the contract and unleash a renewed era of innovation, accountability, and execution across the defense industrial base,” Taiclet, a two-time Wash100 awardee, said during an earnings call Thursday.
He cited Lockheed’s technological capabilities and efforts to support the U.S. government’s next-generation missile defense shield project, Golden Dome for America. At the call, he mentioned the company’s HELIOS shipboard laser system and its capability to counter drone threats.
“This development of laser weapon systems is just one example of Lockheed Martin’s support of the Homeland Defense Mission, including Golden Dome for America. We also continue to collaborate with government and industry in our prototyping environment at our Center for Innovation in Virginia to support the command and control aspects of Golden Dome,” Taiclet told analysts during the call.
“We’re also, as mentioned earlier, making substantial investments to rapidly increase production capacity across missiles, sensor suites, battle management systems, and satellites, as well as the rapid development of space-based interceptors that will be directly relevant to achieving the overall objective for Golden Dome,” the chief executive added.
Taiclet also mentioned that Lockheed invested $3.5 billion in capital and independent research and development to boost production capacity and drive innovation.
What Are the Q4 2025 Financial Results of Lockheed Business Segments?
The aeronautics business reported $8.5 billion in Q4 2025 sales, up 6 percent from the prior-year period. The company attributed the growth to higher sales on classified programs.
Lockheed’s missiles and fire control business posted $4 billion in Q4 sales, an 18 percent increase from the same period last year. The company attributed the increase to production ramp-up on tactical and strike missile programs.
The rotary and mission systems segment logged $4.6 billion in Q4 sales, up 8 percent from the prior-year period. Lockheed attributed the increase to higher net sales on integrated warfare systems and sensors and Sikorsky helicopter programs.
The space segment’s Q4 sales rose 8 percent to approximately $3.2 billion, driven by higher sales volume for strategic and missile defense, national security space and commercial civil space programs.
What Is Lockheed’s 2026 Financial Outlook?
Lockheed expects its full-year 2026 sales to be in the range of $77.5 billion to $80 billion.
“We expect sales and reported segment operating profit growth of approximately 5% and 25% year-over-year, respectively, and free cash flow between $6.5 to $6.8 billion, an increase compared to our prior expectation,” Taiclet said in a statement.
