Lockheed Martin's Q3 sales rise 11%, lifts FY outlook

Lockheed Martin

Today 11:31

Overview
US defense contractor's Q3 sales rose 11%, slightly beating analyst expectations
Adjusted EPS for Q3 increased to $7.97, net earnings up 14% yr/yr
Company reported record backlog of $292 bln, driven by missile contract awards

Outlook
Lockheed Martin raises 2026 sales outlook to ~$80 bln-$82 bln from $79.75 bln-$81.75 bln
Company lifts 2026 diluted EPS guidance to ~$30.35-$30.75 from $29.95-$30.65
Lockheed Martin increases 2026 free cash flow forecast to ~$7.8 bln-$8 bln from $7 bln-$7.2 bln

Result Drivers
MISSILE PRODUCTION RAMPS - Co said higher sales in Missiles and Fire Control segment were driven by production ramps for PAC-3, THAAD, GMLRS and PrSM programs
F-35 AND C-130 VOLUME - Co said Aeronautics segment growth was driven by higher volume on F-35 production and sustainment contracts and liquidation of pre-contract costs for C-130
BACKLOG GROWTH - Co reported backlog grew 27% since Q2, driven by multi-year missile contract awards

Company press release: ID:nPn3BNmg8a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Beat*
$20.70 bln
$20.51 bln (18 Analysts)
Q3 EPS
 
$7.97
 
Q3 Net Income
 
$1.85 bln
 
Q3 Free Cash Flow
 
$3 bln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Lockheed Martin Corporation is $600.00, about 8.8% above its October 21 closing price of $551.51
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Oct 22 - Lockheed, Pentagon strike initial deal to produce 850 F-35 jets
Oct 19 - Ukraine's Zelenskiy discusses speeding up supplies of Patriots with Lockheed Martin
Oct 20 - Aerospace and military contractors raise 2026 profit forecasts

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)