Lockheed Martin is on track for its strongest monthly performance since 1980, with shares surging more than 20% in January. Investors have credited a surge in Pentagon procurement under the current administration, particularly for F-35 fighter jets and PAC-3 and THAAD missile interceptors. The company’s defense backlog has climbed to a record $194 billion, reflecting a seven-year framework agreement signed with the U.S. Department of War in January to quadruple THAAD interceptor production to 400 units annually and a prior framework for PAC-3 MSE interceptors. Lockheed Martin’s ongoing multibillion-dollar investments in advanced manufacturing facilities across five states have further bolstered market confidence.

In the fourth quarter, Lockheed Martin reported revenue of $20.3 billion, a 9.1% increase year-over-year, and diluted EPS of $5.80, up from $2.22 in the prior-year quarter but slightly below some analyst expectations. Full-year sales rose 6% to $75.0 billion, driven by record F-35 deliveries and strong performance across Aeronautics, Missiles and Fire Control, and Rotary and Mission Systems segments. Net earnings for 2025 totaled $5.0 billion, or $21.49 per share, after a net pension-related charge of $479 million. Cash from operations reached $8.6 billion, generating free cash flow of $6.9 billion following an $860 million pension contribution.

Management reiterated guidance for 2026 sales growth of approximately 5% and segment operating profit growth near 25%, forecasting free cash flow between $6.5 billion and $6.8 billion. The company plans to invest over $3.5 billion in production capacity and next-generation technology this year, expanding more than 20 facilities in Arkansas, Alabama, Florida, Massachusetts and Texas. Lockheed Martin’s backlog of $194 billion provides revenue visibility through the decade, as it scales interceptor production under new framework agreements and continues ramping F-35 output to meet allied requirements.