LOCKHEED MARTIN CORP SEC 10-Q Report

Lockheed Martin Corp, a global aerospace, defense, and security company, has released its Form 10-Q report for the third quarter. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both achievements and challenges faced during the period.

Financial Highlights

Total Sales: $36,118 million, reflecting a slight increase from $35,317 million in the same period last year, driven by growth in the Aeronautics and Missiles and Fire Control segments.

Gross Profit: $3,057 million, a decrease from $4,123 million in the prior year, impacted by increased operating costs and expenses.

Operating Profit: $3,120 million, down from $4,177 million, primarily due to losses on certain programs and increased costs.

Net Earnings: $2,054 million, a decrease from $3,186 million, influenced by program losses and higher operating expenses.

Diluted EPS: $8.75, compared to $13.24 in the previous year, reflecting the impact of reduced net earnings.

Business Highlights

Revenue Segments

The Aeronautics segment reported sales of $7,420 million for the quarter, driven by the F-35 program, which accounted for approximately 28% of total consolidated sales. The Missiles and Fire Control segment achieved $3,433 million in sales, while Rotary and Mission Systems and Space segments reported $3,995 million and $3,307 million, respectively.

Geographical Performance

Sales in the United States accounted for $13,239 million, reflecting strong demand from the U.S. Government. International sales were significant in Europe and Asia Pacific, with $2,086 million and $1,857 million, respectively, indicating robust global demand.

Operational Challenges

The company faced supply chain challenges, including supplier shortages and performance issues, which delayed certain customer deliveries and increased costs. Inflationary pressures also impacted margins on certain programs.

Future Outlook

The company is focused on increasing industry capacity to meet long-term demand, working with the U.S. Government and international partners to enhance operations and replenish stockpiles. Efforts to mitigate supply chain challenges include supporting small business suppliers and optimizing the supply chain through digital transformation.

New Product Launches

The acquisition of Amentum’s Rapid Solutions business is expected to enhance the Space segment's capabilities, particularly in radar and payload technology, supporting evolving customer needs.

Program Performance

The Aeronautics segment experienced significant performance issues on a classified program, resulting in additional reach-forward losses. The RMS segment faced challenges with the Canadian Maritime Helicopter Program, leading to revised cost and sales estimates.

Strategic Initiatives

The company is actively pursuing options to mitigate the impact of tariffs and trade restrictions, including seeking exclusions and securing alternative sources of materials to ensure operational continuity.

SEC Filing: LOCKHEED MARTIN CORP [ LMT ] - 10-Q - Jul. 22, 2025