Lockheed Martin Posts Record $194B Backlog and Quadruples THAAD Output
Lockheed Martin reported Q4 sales of $20.3B (up 9.1% YoY) and full-year 2025 sales of $75.0B (+6%), generating $2.8B free cash flow and ending with a record $194B backlog. The company also agreed to quadruple THAAD interceptor output to 400 units annually with a new Munitions Acceleration Center.
1. Q4 and Full Year 2025 Financial Results
Lockheed Martin reported fourth-quarter sales of $20.3 billion, up 9.1% from $18.6 billion a year earlier, and net earnings of $1.3 billion, or $5.80 per share, compared with $527 million, or $2.22 per share, in Q4 2024. Full-year 2025 sales rose 6% to $75.0 billion, with net earnings of $5.0 billion, or $21.49 per share, despite a $479 million pension settlement charge. Cash from operations reached $8.6 billion and free cash flow was $6.9 billion after an $860 million pension contribution.
2. Record Backlog and Business Segment Performance
At year-end 2025 Lockheed Martin’s backlog stood at a record $194 billion, supported by strong demand across Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. Segment operating profit for the quarter rose to $2.1 billion, driven by record F-35 deliveries and higher interceptor missile output, while Aeronautics and MFC both posted double-digit profit growth, offsetting classified program losses recognized earlier in the year.
3. Production Ramp for Interceptor Missiles and Jets
Responding to U.S. Department of Defense directives, Lockheed Martin will quadruple THAAD interceptor output to roughly 400 units per year over the next seven years and plans a similar expansion for PAC-3 MSE missiles. The company has invested over $7 billion since 2017 in capacity expansion, including more than $3.5 billion in 2025 alone on advanced manufacturing technologies, robotics and digital tooling across 20 facilities. Headcount for missile and munitions programs has grown by over 60% since 2017, with tens of thousands of high-skilled roles added.
4. Outlook for 2026
Lockheed Martin provided guidance calling for approximately 5% year-over-year sales growth and a 25% increase in reported segment operating profit, targeting free cash flow of $6.5–$6.8 billion. Management emphasized disciplined capital allocation, highlighting plans for sustained investment in next-generation systems and production capacity. Continued geopolitical tensions and congressional appropriations for defense modernization underpin the forecast, with new framework agreements expected to accelerate delivery of priority platforms.