Overview
- Lockheed Martin, which reported results Thursday, posted EPS of $6.44 on roughly flat revenue of $18.0 billion and the stock fell about 3% to 4% after the miss.
- Free cash flow swung to negative $291 million as cash from operations dropped to $220 million, which the company tied to billing and working-capital timing and an ERP transition.
- Missiles and Fire Control sales rose 8% and Space grew 7%, while Aeronautics fell 1% and Rotary and Mission Systems slipped 8% as F-16 development and C-130 supplier issues drove $125 million and $55 million in profit hits.
- Deliveries slowed with 32 F-35s handed over versus 47 a year ago and no F-16s shipped, and total backlog declined to $186.4 billion from $193.6 billion at year-end 2025.
- Management reaffirmed 2026 targets for $77.5–$80.0 billion in sales and $6.5–$6.8 billion in free cash flow and highlighted new Pentagon framework agreements to scale Patriot, THAAD, and Precision Strike Missile output by three to four times over time.