- Backlog hit an all-time high of $230 billion, up about $64 billion year over year
- Quarterly sales climbed 11 percent to $20.1 billion
- Lockheed now sees full-year sales of $79.75 billion to $81.75 billion, an 8 percent midpoint jump from prior 5 percent guidance
Lockheed Martin has raised its full-year 2026 guidance after posting second-quarter results that included a record backlog and accelerating revenue. The defense contractor reported the results Thursday.
The company’s backlog reached an all-time high of $230 billion, up roughly $64 billion from the second quarter of 2025, on a book-to-bill ratio of 3.2 to 1. Quarterly sales rose 11 percent year over year to $20.1 billion, and free cash flow swung to positive $2.9 billion from negative $150 million a year earlier. Earnings per share reached $7.94. Lockheed Chairman, President and CEO Jim Taiclet, a two-time Wash100 Award winner, attributed the performance to strategic bets the company made ahead of demand, including expanding munitions capacity before contracts materialized, adopting open architecture and building allied manufacturing sites.
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How Much Did Lockheed Raise Its 2026 Outlook?
The company now projects full-year sales of $79.75 billion to $81.75 billion, an 8 percent increase at the midpoint, up from prior guidance of 5 percent. Lockheed lifted its segment operating profit target to between $8.5 billion and $8.7 billion, raised its free cash flow outlook to $7 billion to $7.2 billion, and set earnings per share at $29.95 to $30.65. Chief Financial Officer Evan Scott said every segment will grow faster in the second half of 2026, with missiles and fire control leading the acceleration in munitions production.
What Contract Wins Drove the Quarter?
The backlog gain was led by a seven-year, $35 billion Missile Defense Agency contract awarded in late June to quadruple production of Terminal High Altitude Area Defense interceptors. Lockheed also cited a $3 billion Army contract for Guided Multiple Launch Rocket System production, a HIMARS award worth up to $1.1 billion, a $2.3 billion radar contract and selection to develop space-based interceptor prototypes under the Golden Dome missile defense effort. The company noted several fast-turnaround development efforts, including its Sanctum counter-drone system, which it took from concept to live-fire testing in under 45 days.
How Is Lockheed Changing Its Development and Manufacturing Approach?
Taiclet pointed to technology road maps that anticipate military needs as the engine behind lower-cost effectors such as the PAC-3 ACE interceptor and the MORFIUS counter-drone system, both unveiled at the Farnborough International Airshow. Scott framed those investments as incremental to the company’s traditional programs rather than a replacement for them.
Since the quarter closed, Lockheed has agreed to acquire undersea-warfare firm Ultra Maritime for $3.45 billion and signed an agreement with Rheinmetall toward a European center for Army Tactical Missile System production.
