Lockheed Martin reported fourth-quarter sales of $20.3 billion, a 9.1% increase versus the same period a year earlier, driven by record deliveries of its F-35 fighter jet and higher missile production. Net earnings rose to $1.3 billion, or $5.80 per share, compared with $527 million, or $2.22 per share, in Q4 of the prior year. Free cash flow for the quarter reached $2.8 billion after an $860 million pension contribution. The company closed the year with a backlog of $194 billion, up from $184 billion at the end of 2024, providing a multi-year revenue visibility that underpins its guidance for approximately 5% year-over-year sales growth and a 25% increase in segment operating profit in 2026.

In January, Lockheed Martin signed a landmark seven-year framework agreement with the U.S. Department of War to quadruple annual THAAD interceptor output from 96 to 400 units. This follows a similar agreement for PAC-3 MSE missiles, reflecting sustained Pentagon demand for advanced air and missile defense. The company has invested more than $7 billion since 2017 in capacity expansion—approximately $2 billion dedicated solely to munitions acceleration—and will break ground on a new Munitions Acceleration Center in Camden, Arkansas. These initiatives are expected to create tens of thousands of high-quality U.S. jobs and support production lines in Arkansas, Alabama, Florida, Massachusetts and Texas.

Lockheed Martin’s share performance has headed for its strongest month since 1980, benefiting from an upbeat earnings outlook and robust defense spending under the current administration. Full-year 2025 sales rose 6% to $75.0 billion, and the company generated $8.6 billion in operating cash flow and $6.9 billion in free cash flow. Capital investments of $3.5 billion in 2025 targeted production capacity and next-generation technologies across its four business segments. Management’s 2026 guidance projects operating cash flow of $6.5–$6.8 billion and underscores continued alignment with U.S. and allied national defense priorities.