Overview
- Lockheed Martin posted first-quarter earnings of $6.44 per share on $18.0 billion in sales, down from $7.28 a year earlier with revenue essentially flat.
- Management blamed higher costs on fixed-price contracts and production slowdowns, including F-16 development delays and C-130 holdups caused by scarce suppliers.
- The company recorded profit book rate adjustments, an accounting step that lowers expected margins on programs where cost and schedule estimates have worsened.
- Cash generation weakened as operating cash flow fell to $220 million and free cash flow turned negative $291 million, which the company tied to billing and working-capital timing.
- Backlog slipped to $186.4 billion as F-35 deliveries fell to 32 and no F-16s were delivered, even as Lockheed signed Pentagon framework deals to speed Patriot, THAAD and PrSM missile output and kept its 2026 sales outlook of $77.5–$80.0 billion.