Lockheed Martin (LMT) kicked off Q1 2025 with solid momentum, reporting across-the-board growth in sales, profitability, and segment performance. Sales rose 4% year-over-year to $18.0 billion, while net earnings climbed to $1.7 billion, or $7.28 per share, up from $6.39 a year ago. The company also delivered a notable 17% increase in operating profit to $2.37 billion, lifting its operating margin to 13.2% from 11.8%. Segment profitability mirrored this strength, with business segment operating profit up 19% to $2.09 billion, and the segment margin improving to 11.6%.

Among business segments, Missiles and Fire Control (MFC) led performance, with sales up 13% to $3.37 billion and operating profit surging 50% to $465 million, supported by robust demand for tactical and strike missile programs and the absence of prior-year charges. Rotary and Mission Systems (RMS) followed with 6% sales growth and a 21% rise in operating profit, while Aeronautics grew 3%, bolstered by increased F-35 volume and an $80 million profit adjustment on a classified program. Although Space saw a 2% dip in sales, operating profit still rose 17%, reflecting favorable performance in commercial civil space projects.

On the cash flow front, cash from operations was $1.4 billion, down from $1.6 billion in the prior year, and free cash flow declined to $955 million, primarily due to working capital shifts, higher insurance expenses, and employee-related outflows. Still, Lockheed returned a robust $1.5 billion to shareholders through dividends and share repurchases.

The company’s backlog remained strong at $173 billion, equivalent to more than two years of revenue, with major new awards across missile and space programs totaling up to $10 billion. Despite the dip in cash flow, Lockheed reaffirmed its full-year 2025 guidance, targeting sales between $73.75–$74.75 billion, EPS of $27.00–$27.30, and free cash flow of $6.6–$6.8 billion.

CEO Jim Taiclet emphasized Lockheed’s continued operational excellence, citing ongoing investments in R&D and capital projects (including $850 million in Q1), and the company's focus on innovation and digital transformation. With strong demand, resilient franchises, and a record backlog, Lockheed Martin appears well-positioned to deliver on its 2025 outlook and sustain its momentum.