Lockheed Martin reported fourth-quarter sales of $20.3 billion, a 9.1% increase over the same period last year, and full-year 2025 sales of $75.0 billion, up 6% year-on-year. Net earnings for Q4 rose to $1.3 billion (or $5.80 per share), driven by record deliveries of F-35 fighter jets and strong performance in its Rotary and Mission Systems segment. Cash from operations in the quarter reached $3.2 billion, contributing to free cash flow of $2.8 billion after a $860 million pension contribution. At year-end, the company’s order backlog stood at a record $194 billion, reflecting sustained demand across all four business units.

To meet escalating demand for air and missile defense, Lockheed Martin signed a seven-year framework agreement with the U.S. Department of War to quadruple THAAD interceptor production from 96 to approximately 400 units per year. A parallel framework for PAC-3 MSE interceptor deliveries was also executed early in the quarter. Since 2017, the company has invested more than $7 billion to expand munitions capacity—$2 billion of which targeted accelerated production—and plans an additional multibillion-dollar capital program over the next three years. Ground-breaking for a new Munitions Acceleration Center in Camden, Arkansas will leverage advanced manufacturing, robotics and digital technologies to sustain higher throughput.

Lockheed Martin’s stock is on track for its strongest monthly gain since 1980, buoyed by an upbeat earnings outlook and solid order flow from the U.S. Defense Department. Demand for interceptor missiles and next-generation fighter aircraft under the Trump administration’s defense buildup has propelled both the company’s revenue guidance—forecast to grow approximately 5% in 2026—and segment operating profit, expected to expand by around 25%. Investor confidence has been further bolstered by projected free cash flow of $6.5–$6.8 billion for the coming year and a commitment to return capital through share repurchases and dividends.