LMT · Lockheed Martin Corporation

Lockheed Martin reported first quarter 2026 results with sales of $18.0 billion, flat year-over-year as gains in Missiles and Fire Control (up 8% to $3.6B from production ramps on PAC-3, JASSM, LRASM, PrSM) and Space (up 7% to $3.4B from FBM and NGI volume) offset declines in Aeronautics (down 1% to $7.0B due to lower classified and F-16 volumes) and Rotary and Mission Systems (down 8% to $4.0B from lower radar and Sikorsky helicopter sales). Business segment operating profit fell 13% to $1.8B, primarily from unfavorable profit adjustments in Aeronautics ($125M F-16, $55M C-130) despite F-35 offsets, absence of prior-year favorable completions in Space and Aeronautics, and CH-53K/Seahawk issues in RMS. Consolidated net earnings dropped to $1.5B or $6.44 per share from $1.7B or $7.28, with effective tax rate at 16.1%. Cash from operations declined sharply to $220M from $1.4B due to working capital timing, with capex at $511M, IR&D $458M, dividends $816M, and $1.0B debt repayment driving negative free cash flow of $(291)M. CEO Jim Taiclet highlighted Orion's Artemis II success, F-35/F-22 effectiveness, missile defense systems, and new multiyear framework agreements with the Department of War to triple/quadruple munitions output (Patriot, THAAD, PrSM), supporting infrastructure investments. The company reaffirmed its 2026 outlook for ~5% sales growth to $77.5-80B, ~25% segment profit growth, EPS $29.35-30.25, and FCF $6.5-6.8B, signaling confidence despite Q1 cash pressures.