Lockheed Martin shares jump as defense giant beats Q4 expectations

Investing.com -- Lockheed Martin Corporation (NYSE: LMT) shares have surged 5.3% premarket after the defense contractor reported fourth-quarter earnings and revenue that exceeded analyst expectations, driven by strong demand for its military hardware.

The aerospace and defense giant posted fourth-quarter earnings of $5.80 per share, beating analyst estimates of $5.75. Revenue climbed to $20.3 billion, up 9.1% from $18.6 billion in the same period last year and above the consensus forecast of $19.85 billion.

The company's performance was bolstered by significant sales increases across all business segments, particularly in Missiles and Fire Control, which saw an 18% revenue jump.

"With a record $194 billion backlog, 6% YoY sales growth, and free cash flow generation above our prior expectation, 2025 marked a year of unprecedented demand for Lockheed Martin capabilities," said Lockheed Martin Chairman, President and CEO Jim Taiclet.

For the full year 2025, Lockheed Martin reported sales of $75.0 billion, a 6% increase from 2024, with net earnings of $5.0 billion, or $21.49 per share. The company's results included a pension settlement charge of $479 million ($377 million, or $1.63 per share, after-tax).

Looking ahead, Lockheed Martin provided fiscal 2026 guidance with expected revenue between $77.5 billion and $80 billion, compared to analyst estimates of $77.85 billion. The company forecasts earnings per share between $29.35 and $30.25, in line with the consensus of $29.41.

The company's cash from operations reached $3.2 billion in the fourth quarter, significantly higher than the $1.0 billion reported in the same period last year. Free cash flow was $2.8 billion after a pension contribution of $860 million.

Lockheed's performance was driven by increased sales across all segments, with Aeronautics up 6% to $8.5 billion, Missiles and Fire Control up 18% to $4.0 billion, Rotary and Mission Systems up 8% to $4.6 billion, and Space up 8% to $3.2 billion compared to the fourth quarter of 2024.

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