Lockheed Martin reported third-quarter revenue of $18.6 billion, marking an 8% year-over-year increase driven by higher volume in its Aeronautics and Missile & Fire Control segments. Net profit for the quarter reached $1.6 billion, or $5.16 per share on a diluted basis, compared with $1.3 billion, or $4.16 per share, in the same period last year. Operating cash flow for the quarter totaled $3.3 billion, supported by strong program execution on the F-35 and C-130J platforms.

Lockheed Martin’s board declared a quarterly dividend equivalent to a 2.9% annual yield, representing the 23rd consecutive year of dividend increases. The company’s trailing-twelve-month free cash flow exceeded $8 billion, providing ample coverage for its dividend and share repurchase program. Analysts project free cash flow per share to grow at a 7% compound annual rate over the next five years, underpinned by higher volume on classified space and missile defense contracts.

At the end of Q3, Lockheed Martin’s total backlog stood at $179 billion, up 5% from the prior quarter. The Aeronautics segment accounted for nearly 65% of this backlog, anchored by F-35 production ramp-up and a multiyear C-130J transport contract valued at $3.2 billion. In Space, the backlog grew to $25 billion following awards for the National Security Space Launch and future satellite programs. Services backlog increased by 12%, reflecting new sustainment deals for rotary-wing and fixed-wing fleets worldwide.

In December, the U.S. Department of Defense awarded Lockheed Martin a $328.5 million undefinitized letter contract to deliver 55 Legion Enhanced Sensor pods for Taiwan under the Foreign Military Sales program. Work will be performed in Orlando, Florida, with completion expected by mid-2031. Earlier in the quarter, the Pentagon exercised a $1.2 billion option for additional F-35 sustainment services and added $2.5 billion to an existing missile defense contract, highlighting continued momentum in U.S. defense procurement.