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4h ago

Lockheed Martin Stock Slides on Q1 Miss as Wall Street Warns on Cash

Analysts now stress cash and execution risk from classified work that challenges the backlog-driven recovery story.

BofA notes more than a two-times increase in fiscal year 2027 requested procurement funding for major programs tied to Lockheed Martin.
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Overview

  • Lockheed Martin shares fell about 12% after its first-quarter report missed expectations and prompted fresh price-target cuts.
  • The company reported earnings of $6.44 per share versus $6.74 expected and revenue of $18.02 billion versus $18.38 billion, with free cash flow at negative $291 million.
  • New orders were weak with a book-to-bill ratio near 0.6, showing that quarterly bookings did not keep pace with sales.
  • Bank of America lowered its target to $600 and warned that classified programs could use $500 million to $700 million of cash this year as capital spending rises toward about $2.7 billion.
  • Management reaffirmed full-year EPS guidance of $29.35 to $30.25, and investors are watching second-half execution and cash generation to see if timing issues ease as management expects.