Lockheed Martin Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Lockheed Martin (NYSE:LMT) reported second quarter 2026 sales of $20.1 billion, up 11% from 2025, with net earnings of $1.8 billion and diluted EPS of $7.94. Business segment operating profit rose to $2.2 billion, and free cash flow reached $2.9 billion.
Cash from operations was $3.2 billion. The company booked $65 billion of new orders, taking backlog to a record $230 billion, including a $35 billion multi‑year THAAD interceptor contract with the Missile Defense Agency. According to Lockheed Martin, 2026 guidance was raised for sales, segment operating profit, EPS and free cash flow.
Positive
- Q2 2026 sales $20.1B, up 11% year over year
- Q2 2026 diluted EPS $7.94 vs. $1.46 in Q2 2025
- Q2 2026 free cash flow $2.9B vs. -$0.15B in prior-year quarter
- Record backlog $230B, supported by $65B in new orders
- THAAD multi-year contract approximately $35B with Missile Defense Agency
- 2026 sales guidance raised to ~$79.75–$81.75B from $77.5–$80.0B
- 2026 free cash flow outlook lifted to ~$7.0–$7.2B from $6.5–$6.8B
Negative
- Strong profit growth benefits from lapping $1.6B prior-year program reach-forward losses
- Aeronautics impacted by $120M lower F-16 and C-130 sustainment sales
- Rotary and Mission Systems faced $65M Heavy Lift and $50M Seahawk unfavorable profit adjustments
- Space segment margin down to 10.6% from 10.9% in Q2 2025
News Explained
2026 cash-flow outlook is $9,200-$9,400 million from operations and $7,000-$7,200 million of free cash flow.
The completed second quarter's cash result was driven primarily by customer-receipt timing and lower tax payments, so the disclosed liquidity improvement has a stated timing component.
The updated 2026 outlook sets sales at
The company defines free cash flow as cash from operations less capital expenditures and describes it as a non-GAAP measure; business segment operating profit is also non-GAAP and excludes unallocated income and expense.
Market reaction: LMT +5.37% on 2Q26 earnings report
Following this news, LMT has gained 5.37%, reflecting a notable positive market reaction. Our momentum scanner has triggered 4 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $542.00. This price movement has added approximately $6.04B to the company's valuation.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 01 | Earnings webcast notice | Neutral | +2.4% | Announced date and webcast details for second-quarter 2026 earnings results |
| Apr 23 | First-quarter earnings | Positive | -4.6% | Reported first-quarter results and reaffirmed full-year 2026 financial guidance |
| Jan 29 | Fourth-quarter earnings | Positive | +4.2% | Reported full-year results, record backlog and initial 2026 financial outlook |
| Oct 21 | Third-quarter earnings | Positive | -3.2% | Reported third-quarter results, raised guidance and increased shareholder-return authorization |
| Oct 01 | Earnings webcast notice | Neutral | -0.0% | Scheduled the third-quarter 2025 earnings conference call and release |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with 2 aligned positive responses and 3 divergences, averaging -0.25%.
Key Terms
non-GAAP financial measures financial
camt regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Sales increase of
11% to$20 - Net earnings of
$1 $7.94 - Cash from operations of
$3 $2 - Record backlog of
$230 billion , inclusive of the multi-year contract to produce THAAD interceptors - Updates 2026 financial outlook
"We delivered strong second‑quarter performance, with over
"These results are powered by consistent performance on the commitments we've made and by our investments to support the missions our customers will face next. Over the quarter, we took a major step forward in transforming munitions production, putting the framework agreements we announced earlier this year into action by signing a
Summary Financial Results
(in millions, except per share data) | Quarters Ended | Six Months Ended | ||||||||
June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 2025 | |||||||
Sales | $ 20,063 | $ 18,155 | $ 38,084 | $ 36,118 | ||||||
Business segment operating profit1 | $ 2,162 | $ 571 | $ 3,985 | $ 2,656 | ||||||
Unallocated items | ||||||||||
FAS/CAS pension operating adjustment | 422 | 379 | 843 | 758 | ||||||
Impairment and other charges | — | (66) | — | (66) | ||||||
Intangible asset amortization expense | (50) | (63) | (100) | (127) | ||||||
Other, net2 | (55) | (73) | (186) | (101) | ||||||
Total unallocated items | 317 | 177 | 557 | 464 | ||||||
Consolidated operating profit | $ 2,479 | $ 748 | $ 4,542 | $ 3,120 | ||||||
Net earnings | $ 1,836 | $ 342 | $ 3,324 | $ 2,054 | ||||||
Diluted earnings per share | $ 7.94 | $ 1.46 | $ 14.38 | $ 8.75 | ||||||
Cash from operations | $ 3,235 | $ 201 | $ 3,455 | $ 1,610 | ||||||
Capital expenditures | (318) | (351) | (829) | (805) | ||||||
Free cash flow1 | $ 2,917 | $ (150) | $ 2,626 | $ 805 | ||||||
1 | Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news | |||||||||
2 | Other, net for the quarters ended June 28, 2026 and June 29, 2025 included net gains of | |||||||||
Sales: Second quarter 2026 sales increased
Consolidated Operating Profit: Second quarter 2026 consolidated operating profit increased
Business Segment Operating Profit: Second quarter 2026 business segment operating profit increased
Net Earnings and Diluted EPS: Second quarter 2026 net earnings increased
Cash Flows: Second quarter 2026 cash from operations and free cash flows increased
2026 Financial Outlook
The following guidance table contains forward-looking statements, which are based on the company's expectations at the time of this news release. Actual results may differ materially from those projected. It is the company's practice not to incorporate adjustments in its financial outlook for proposed acquisitions (such as the recently announced agreement to acquire Ultra Maritime), divestitures, joint ventures, changes in tax laws, or special items until such items have been consummated or enacted. Refer to the "Forward-Looking Statements" section contained in this press release and Form 10-Q for factors that may impact the company's ability to achieve guidance or meet expectations.
(in millions, except per share data) | Current Update | April 2026 | ||||
Sales | ||||||
Business segment operating profit1 | ||||||
Total FAS/CAS pension adjustment | ||||||
Diluted earnings per share | ||||||
Cash from operations | ||||||
Capital expenditures | ||||||
Free cash flow1 | ||||||
1 | Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this | |||||
Segment Results
(in millions) | Quarters Ended | Six Months Ended | ||||||||
June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 2025 | |||||||
Sales | ||||||||||
Aeronautics | $ 8,112 | $ 7,420 | $ 15,065 | $ 14,477 | ||||||
Missiles and Fire Control | 4,101 | 3,433 | 7,750 | 6,806 | ||||||
Rotary and Mission Systems | 4,354 | 3,995 | 8,345 | 8,323 | ||||||
Space | 3,496 | 3,307 | 6,924 | 6,512 | ||||||
Total sales | $ 20,063 | $ 18,155 | $ 38,084 | $ 36,118 | ||||||
Operating profit (loss) | ||||||||||
Aeronautics | $ 760 | $ (98) | $ 1,379 | $ 622 | ||||||
Missiles and Fire Control | 594 | 479 | 1,094 | 944 | ||||||
Rotary and Mission Systems | 437 | (172) | 860 | 349 | ||||||
Space | 371 | 362 | 652 | 741 | ||||||
Total business segment operating profit | 2,162 | 571 | 3,985 | 2,656 | ||||||
Unallocated items | ||||||||||
FAS/CAS operating adjustment | 422 | 379 | 843 | 758 | ||||||
Impairment and other charges | — | (66) | — | (66) | ||||||
Intangible asset amortization expense | (50) | (63) | (100) | (127) | ||||||
Other, net | (55) | (73) | (186) | (101) | ||||||
Total unallocated items | 317 | 177 | 557 | 464 | ||||||
Total consolidated operating profit | $ 2,479 | $ 748 | $ 4,542 | $ 3,120 | ||||||
Aeronautics
(in millions) | Quarters Ended | Six Months Ended | ||||||||
June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 2025 | |||||||
Sales | $ 8,112 | $ 7,420 | $ 15,065 | $ 14,477 | ||||||
Operating profit (loss) | 760 | (98) | 1,379 | 622 | ||||||
Operating margin | 9.4 % | (1.3 %) | 9.2 % | 4.3 % | ||||||
Second quarter 2026 sales increased
Second quarter 2026 operating profit increased
Missiles and Fire Control
(in millions) | Quarters Ended | Six Months Ended | ||||||||
June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 2025 | |||||||
Sales | $ 4,101 | $ 3,433 | $ 7,750 | $ 6,806 | ||||||
Operating profit | 594 | 479 | 1,094 | 944 | ||||||
Operating margin | 14.5 % | 14.0 % | 14.1 % | 13.9 % | ||||||
Second quarter 2026 sales increased
Second quarter 2026 operating profit increased
Rotary and Mission Systems
(in millions) | Quarters Ended | Six Months Ended | ||||||||
June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 2025 | |||||||
Sales | $ 4,354 | $ 3,995 | $ 8,345 | $ 8,323 | ||||||
Operating profit (loss) | 437 | (172) | 860 | 349 | ||||||
Operating margin | 10.0 % | (4.3 %) | 10.3 % | 4.2 % | ||||||
Second quarter 2026 sales increased
Second quarter 2026 operating profit increased
Space
(in millions) | Quarters Ended | Six Months Ended | ||||||||
June 28, 2026 | June 29, 2025 | June 28, 2026 | June 29, 2025 | |||||||
Sales | $ 3,496 | $ 3,307 | $ 6,924 | $ 6,512 | ||||||
Operating profit | 371 | 362 | 652 | 741 | ||||||
Operating margin | 10.6 % | 10.9 % | 9.4 % | 11.4 % | ||||||
Second quarter 2026 sales increased
Second quarter 2026 operating profit was comparable to the second quarter of 2025.
Income Taxes
The company's effective income tax rates were
On February 18, 2026, the
Use of Non-GAAP Financial Measures
This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by
Business segment operating profit
Business segment operating profit represents operating profit from the company's business segments before unallocated income and expense. This measure is used by the company's senior management in evaluating the performance of its business segments and is a performance goal in the company's annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.
(in millions) | Current Update | April 2026 | ||||
Business segment operating profit (non-GAAP) | ||||||
FAS/CAS operating adjustment1 | ~1,685 | ~1,685 | ||||
Intangible asset amortization expense | ~(200) | ~(200) | ||||
Other, net | ~(490) | ~(475) | ||||
Consolidated operating profit (GAAP) | ||||||
1 | Reflects the amount by which total CAS pension cost of | |||||
Free cash flow
Free cash flow is a non-GAAP financial measure that the company defines as cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity. While management believes that free cash flow as a non-GAAP financial measure may be useful in evaluating the company's financial performance, it should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies.
Webcast and Conference Call Information
Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Thursday, July 23, 2026, at 8:30 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor. The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor.
For additional information, visit the company's website: www.lockheedmartin.com.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin's current expectations and assumptions. The words "believe," "estimate," "anticipate," "project," "intend," "expect," "plan," "outlook," "scheduled," "forecast" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:
- the company's reliance on contracts with the
U.S . Government, which are dependent onU.S . Government funding and can be terminated for convenience, and the company's ability to negotiate favorable contract terms; - budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling and government shutdowns, and changing funding and acquisition priorities;
- risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program;
- the timing of contract awards or contract definitization, decisions by government customers to impose contract terms following undefinitized contract actions, achievement of performance milestones, customer acceptance of product deliveries, and receipt of customer payments;
- the company's ability to recover costs under
U.S . Government contracts, the mix of fixed-price and cost-reimbursable contracts and the risks inherent in preparing estimates for fixed-price contracts (particularly for complex and technologically advanced programs); - customer procurement and other policies, laws, regulations and executive actions that affect the company and its industry, programs, future opportunities, and financial performance, including those relating to mission priorities, competing domestic and international spending, contracting terms (such as fixed-price requirements), acquisition process reforms, treatment of contractor performance issues, and contractor access to competitive opportunities;
- planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment and rare earth minerals;
- performance and/or financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance, for which the company has provided and expects to provide additional financial guarantees), joint venture partners, subcontractors and customers;
- changes in economic, capital market and political conditions in the
U.S . and globally; - the impact of inflation and other cost pressures;
- government actions that restrict or prevent the sale or delivery of the company's products (such as delays in approvals for exports requiring Congressional notification);
- foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences, and other trade restrictions;
- the company's success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales, including potential effects from fluctuations in currency exchange rates;
- changes in non-
U.S . national priorities and government budgets and planned orders; - the competitive environment for the company's products and services;
- the company's ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;
- the company's ability to benefit fully from or adequately protect its intellectual property rights;
- the company's ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions;
- cyber or other security threats or other disruptions faced by the company or its suppliers;
- the company's ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions, including as a result of presidential executive orders;
- the accuracy of the company's estimates and projections;
- changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension annuity contracts and associated charges;
- realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market;
- the satisfaction of conditions to (including regulatory approvals) and consummation of the company's announced acquisition of Ultra Maritime, if at all, the timing and terms of any financing for such acquisition and the impact thereof on its indebtedness and capital allocation, its ability to successfully integrate the Ultra Maritime business and realize synergies and other expected benefits of the transaction and the potential for disruption to its or Ultra Maritime's business, customer and supplier relationships, and retention of key personnel during the pendency of the transaction;
- the company's efforts to fund and increase production capabilities and the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives;
- the risk of an impairment of the company's assets, including the potential impairment of goodwill and intangibles;
- the availability and adequacy of the company's insurance and indemnities;
- compliance with laws, regulations, policies, and customer requirements relating to environmental matters;
- the impact of public health crises, natural disasters and other severe weather conditions on the company's business and financial results, including supply chain disruptions and delays, employee absences, and program delays;
- changes in accounting,
U.S . or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; and - the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, administrative reviews, government investigations or government allegations that the company has failed to comply with law, other contingencies and
U.S . Government identification of deficiencies in its business systems.
These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company's filings with the
The company's actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its issuance. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.
Lockheed Martin Corporation Consolidated Statements of Earnings1 (unaudited; in millions, except per share data) | |||||||||
Quarters Ended | Six Months Ended | ||||||||
June 28, 2026 | June 29, 2025 | June 28, | June 29, | ||||||
Sales | $ 20,063 | $ 18,155 | $ 38,084 | $ 36,118 | |||||
Operating costs and expenses | (17,617) | (17,421) | (33,560) | (33,061) | |||||
Gross profit | 2,446 | 734 | 4,524 | 3,057 | |||||
Other income, net | 33 | 14 | 18 | 63 | |||||
Operating profit2 | 2,479 | 748 | 4,542 | 3,120 | |||||
Interest expense | (266) | (274) | (535) | (542) | |||||
Non-service FAS pension expense | (80) | (99) | (160) | (197) | |||||
Other non-operating income, net | 45 | 42 | 105 | 72 | |||||
Earnings before income taxes | 2,178 | 417 | 3,952 | 2,453 | |||||
Income tax expense | (342) | (75) | (628) | (399) | |||||
Net earnings | $ 1,836 | $ 342 | $ 3,324 | $ 2,054 | |||||
Effective tax rate | 15.7 % | 18.0 % | 15.9 % | 16.3 % | |||||
Earnings per common share | |||||||||
Basic | $ 7.98 | $ 1.46 | $ 14.45 | $ 8.78 | |||||
Diluted | $ 7.94 | $ 1.46 | $ 14.38 | $ 8.75 | |||||
Weighted average shares outstanding | |||||||||
Basic | 230.2 | 233.5 | 230.1 | 234.0 | |||||
Diluted | 231.1 | 234.3 | 231.1 | 234.8 | |||||
Common shares reported in stockholders' equity at end of period | 230 | 232 | |||||||
1 | The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on June 28, for the second quarter of 2026 and June 29, for the second quarter of 2025. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company's fiscal year ends on Dec. 31. | ||||||||
2 | As previously described, operating profit for the quarter ended June 29, 2025 included losses of | ||||||||
Lockheed Martin Corporation Business Segment Summary Operating Results (unaudited; in millions) | |||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||
June 28, | June 29, | % | June 28, | June 29, | % | ||||||||
Sales | |||||||||||||
Aeronautics | $ 8,112 | $ 7,420 | 9 % | $ 15,065 | $ 14,477 | 4 % | |||||||
Missiles and Fire Control | 4,101 | 3,433 | 19 % | 7,750 | 6,806 | 14 % | |||||||
Rotary and Mission Systems | 4,354 | 3,995 | 9 % | 8,345 | 8,323 | — % | |||||||
Space | 3,496 | 3,307 | 6 % | 6,924 | 6,512 | 6 % | |||||||
Total sales | $ 20,063 | $ 18,155 | 11 % | $ 38,084 | $ 36,118 | 5 % | |||||||
Operating profit (loss) | |||||||||||||
Aeronautics1 | $ 760 | $ (98) | NM* | $ 1,379 | $ 622 | 122 % | |||||||
Missiles and Fire Control | 594 | 479 | 24 % | 1,094 | 944 | 16 % | |||||||
Rotary and Mission Systems2 | 437 | (172) | NM* | 860 | 349 | 146 % | |||||||
Space | 371 | 362 | 2 % | 652 | 741 | (12 %) | |||||||
Total business segment operating profit | 2,162 | 571 | 279 % | 3,985 | 2,656 | 50 % | |||||||
Unallocated items | |||||||||||||
FAS/CAS operating adjustment | 422 | 379 | 843 | 758 | |||||||||
Impairment and other charges | — | (66) | — | (66) | |||||||||
Intangible asset amortization expense | (50) | (63) | (100) | (127) | |||||||||
Other, net | (55) | (73) | (186) | (101) | |||||||||
Total unallocated items | 317 | 177 | 79 % | 557 | 464 | 20 % | |||||||
Total consolidated operating profit | $ 2,479 | $ 748 | 231 % | $ 4,542 | $ 3,120 | 46 % | |||||||
Operating margin | |||||||||||||
Aeronautics | 9.4 % | (1.3 %) | 9.2 % | 4.3 % | |||||||||
Missiles and Fire Control | 14.5 % | 14.0 % | 14.1 % | 13.9 % | |||||||||
Rotary and Mission Systems | 10.0 % | (4.3 %) | 10.3 % | 4.2 % | |||||||||
Space | 10.6 % | 10.9 % | 9.4 % | 11.4 % | |||||||||
Total business segment operating margin | 10.8 % | 3.1 % | 10.5 % | 7.4 % | |||||||||
Total consolidated operating margin | 12.4 % | 4.1 % | 11.9 % | 8.6 % | |||||||||
1 | As previously described, operating profit for the quarter ended June 29, 2025 included losses of | ||||||||||||
2 | As previously described, operating profit for the quarter ended June 29, 2025 included losses of | ||||||||||||
* | NM - not meaningful | ||||||||||||
Lockheed Martin Corporation Consolidated Balance Sheets (in millions, except par value) | |||||
June 28, 2026 | Dec. 31, 2025 | ||||
(unaudited) | |||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ 3,791 | $ 4,121 | |||
Receivables, net | 3,356 | 3,901 | |||
Contract assets | 16,038 | 13,001 | |||
Inventories | 4,411 | 3,524 | |||
Other current assets | 805 | 815 | |||
Total current assets | 28,401 | 25,362 | |||
Property, plant and equipment, net | 11,390 | 11,292 | |||
Goodwill | 11,298 | 11,314 | |||
Intangible assets, net | 1,787 | 1,887 | |||
Deferred income taxes | 2,414 | 2,975 | |||
Other noncurrent assets | 7,160 | 7,010 | |||
Total assets | $ 62,450 | $ 59,840 | |||
Liabilities and equity | |||||
Current liabilities | |||||
Accounts payable | $ 4,915 | $ 3,630 | |||
Salaries, benefits and payroll taxes | 3,003 | 3,184 | |||
Contract liabilities | 12,151 | 11,440 | |||
Current maturities of long-term debt | — | 1,168 | |||
Other current liabilities | 3,740 | 3,913 | |||
Total current liabilities | 23,809 | 23,335 | |||
Long-term debt, net | 20,538 | 20,532 | |||
Accrued pension liabilities | 3,931 | 3,915 | |||
Other noncurrent liabilities | 5,404 | 5,337 | |||
Total liabilities | 53,682 | 53,119 | |||
Stockholders' equity | |||||
Common stock, | 230 | 229 | |||
Additional paid-in capital | 247 | — | |||
Retained earnings | 15,759 | 14,034 | |||
Accumulated other comprehensive loss | (7,468) | (7,542) | |||
Total stockholders' equity | 8,768 | 6,721 | |||
Total liabilities and equity | $ 62,450 | $ 59,840 | |||
Lockheed Martin Corporation Consolidated Statements of Cash Flows (unaudited; in millions) | ||||
Six Months Ended | ||||
June 28, | June 29, | |||
Operating activities | ||||
Net earnings | $ 3,324 | $ 2,054 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities | ||||
Depreciation and amortization | 798 | 796 | ||
Stock-based compensation | 180 | 141 | ||
Deferred income taxes | 538 | (561) | ||
Impairment and other charges | — | 66 | ||
Reach-forward losses on select programs | — | 1,615 | ||
Qualified defined benefit pension plans | 184 | 223 | ||
Changes in assets and liabilities | ||||
Receivables, net | 545 | (955) | ||
Contract assets | (3,037) | (2,178) | ||
Inventories | (887) | (461) | ||
Accounts payable | 1,409 | 1,500 | ||
Contract liabilities | 711 | (360) | ||
Income taxes | 43 | 251 | ||
Other, net | (353) | (521) | ||
Net cash provided by operating activities | 3,455 | 1,610 | ||
Investing activities | ||||
Capital expenditures | (829) | (805) | ||
Other, net | (61) | (340) | ||
Net cash used for investing activities | (890) | (1,145) | ||
Financing activities | ||||
Repayments of long-term debt | (1,168) | (142) | ||
Proceeds from commercial paper, net | — | 1,449 | ||
Repurchases of common stock | — | (1,250) | ||
Dividends paid | (1,612) | (1,567) | ||
Other, net | (115) | (145) | ||
Net cash used for financing activities | (2,895) | (1,655) | ||
Net change in cash and cash equivalents | (330) | (1,190) | ||
Cash and cash equivalents at beginning of period | 4,121 | 2,483 | ||
Cash and cash equivalents at end of period | $ 3,791 | $ 1,293 | ||
Lockheed Martin Corporation Selected Financial Data (unaudited; in millions) | |||||
2026 Outlook | 2025 Actual | ||||
Total FAS pension expense and CAS cost | |||||
FAS pension expense | $ (370) | $ (924) | |||
Less: CAS pension cost | 1,735 | 1,568 | |||
Total FAS/CAS pension adjustment | $ 1,365 | $ 644 | |||
Less: pension settlement charge | — | 479 | |||
Total FAS/CAS pension adjustment - adjusted1 | $ 1,365 | $ 1,123 | |||
Service and non-service cost reconciliation | |||||
FAS pension service cost | $ (50) | $ (50) | |||
Less: CAS pension cost | 1,735 | 1,568 | |||
FAS/CAS pension operating adjustment | 1,685 | 1,518 | |||
Non-service FAS pension expense | (320) | (874) | |||
Total FAS/CAS pension adjustment | $ 1,365 | $ 644 | |||
Less: pension settlement charge | — | 479 | |||
Total FAS/CAS pension adjustment - adjusted1 | $ 1,365 | $ 1,123 | |||
1 | The cost components in the table above relate only to the company's qualified defined benefit pension plans. The company recognized a noncash, non-operating pretax settlement charge of | ||||
Lockheed Martin Corporation Other Financial and Operating Information (unaudited; in millions, except for aircraft deliveries and weeks)
| |||||
Backlog | June 28, 2026 | Dec. 31, 2025 | |||
Aeronautics | $ 54,356 | $ 59,435 | |||
Missiles and Fire Control | 87,882 | 46,650 | |||
Rotary and Mission Systems | 48,454 | 47,715 | |||
Space | 39,724 | 39,822 | |||
Total backlog | $ 230,416 | $ 193,622 | |||
Quarters Ended | Six Months Ended | ||||||||
Aircraft Deliveries | June 28, | June 29, | June 28, | June 29, | |||||
F-35 | 19 | 50 | 51 | 97 | |||||
F-16 | 2 | 3 | 2 | 7 | |||||
C-130J | 7 | 1 | 8 | 2 | |||||
Government helicopter programs | 16 | 24 | 35 | 33 | |||||
Commercial helicopter programs | — | — | — | 1 | |||||
Number of Weeks in Reporting Period1 | 2026 | 2025 | |||
First quarter | 12 | 13 | |||
Second quarter | 13 | 13 | |||
Third quarter | 13 | 13 | |||
Fourth quarter | 14 | 13 | |||
1 | Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods. | ||||
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SOURCE Lockheed Martin