Lockheed Martin raised its full-year earnings forecast after reporting higher third-quarter 2025 sales and stronger cash flow, pointing to steady demand for its fighter jets, missiles, helicopters, and space systems.
The US defense contractor posted Q3 2025 revenue of $18.6 billion, up from $17.1 billion a year earlier. Net earnings were $1.6 billion, or $6.95 per share, compared with $6.80 per share in the same quarter of 2024. Cash from operations rose to $3.7 billion, and free cash flow reached $3.3 billion.
The company now expects 2025 revenue between $74.25 billion and $74.75 billion and earnings per share of $22.15 to $22.35, reflecting stronger production and new contract wins. Lockheed Martin also reported a record $179 billion order backlog — equal to more than two and a half years of sales.
Aeronautics led growth in the quarter. Sales rose 12% to $7.26 billion, driven by F-35 deliveries and related support work. The company said it has handed over 143 F-35s so far this year. Profit in the division increased 3% to $682 million, aided by higher jet output but offset by weaker results on transport aircraft.
Missiles and Fire Control sales climbed 14% to $3.62 billion on increased production of JASSM, LRASM, precision-strike, and PAC-3 missile systems. Profit in that division rose 12% to $510 million. Rotary and Mission Systems revenue held steady at $4.37 billion, with gains in Black Hawk helicopter deliveries and communications projects offset by slower activity in Aegis ship systems and training programs. Profit there rose 5% to $506 million. The Space business grew 9% to $3.36 billion, boosted by continued work on Fleet Ballistic Missile and Next Generation Interceptor projects as well as additional classified programs.
Lockheed Martin also reported progress on major contracts. It finalized deals with the F-35 Joint Program Office covering Lots 18 and 19, adding 296 aircraft to its production schedule. The company also highlighted major orders for the CH-53K helicopter and PAC-3 MSE missile programs, both supporting expanded production.
The company said it returned $1.8 billion to shareholders in the quarter through dividends and stock buybacks. It later increased its repurchase authorization by $2 billion to a total of $9.1 billion and raised its quarterly dividend by 5% to $3.45 per share — its 23rd consecutive annual increase.
Chief Executive Jim Taiclet said demand from the United States and its allies remains strong as governments replenish defense inventories and invest in air defense, space, and secure communications. He described the company’s record backlog as a base for long-term growth.
Total operating profit rose 7% from a year earlier to $2.28 billion. The company said improved cash flow was helped by the new F-35 contracts and lower tax payments. Lockheed Martin noted that its forecast does not account for possible effects from a US government shutdown or other policy changes.
The results and outlook exceeded analyst expectations, according to outside reports, and come as global defense spending remains high amid conflicts in Ukraine and the Middle East. The company said it is continuing to invest in new technology and additional manufacturing capacity to meet growing demand.
