Lockheed Martin’s fourth-quarter results were well received by the market, with leadership attributing the outperformance to strong execution across its core defense programs and a surge in demand for advanced technologies. Management cited record delivery numbers for F-35 fighter jets and PAC-3 interceptors, as well as successful deployments of AI-enabled and space-based systems. CEO James Taiclet highlighted the company’s focus on operational execution and stated, “Our mile-long Fort Worth facility enables an F-35 production rate that is five times faster than any other allied fighter currently in production.”
Is now the time to buy LMT? Find out in our full research report (it’s free for active Edge members).
Lockheed Martin (LMT) Q4 CY2025 Highlights:
- Revenue: $20.32 billion vs analyst estimates of $19.84 billion (9.1% year-on-year growth, 2.4% beat)
- EPS (GAAP): $5.80 vs analyst estimates of $5.75 (0.9% beat)
- Adjusted EBITDA: $2.52 billion vs analyst estimates of $2.66 billion (12.4% margin, 5.3% miss)
- EPS (GAAP) guidance for the upcoming financial year 2026 is $29.80 at the midpoint, beating analyst estimates by 1.3%
- Operating Margin: 11.5%, up from 3.7% in the same quarter last year
- Backlog: $193.6 billion at quarter end, up 10% year on year
- Market Capitalization: $138.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lockheed Martin’s Q4 Earnings Call
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Scott Micas (Melius Research) asked about changes to capital deployment strategy following increased CapEx; CEO James Taiclet responded the company remains disciplined but is prioritizing long-term investments enabled by stable framework agreements.
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Richard Safran (Seaport Research) inquired about the timing and margin implications of missile framework deals; management explained initial margin dilution is expected, but frameworks support long-term upside and margin recovery as production matures.
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Kristine Liwag (Morgan Stanley) questioned Lockheed Martin’s approach to disruptive technology and competitive positioning; Taiclet detailed partnerships with new entrants and internal advances in autonomous and space-based systems.
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Douglas Harned (Bernstein) raised concerns about reliance on multi-year appropriations for missile ramps; Taiclet explained new agreements include make-whole provisions to mitigate risk of procurement changes.
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Sheila Kahyaoglu (Jefferies) asked how segment growth prospects and margin targets are evolving; CFO Evan Scott highlighted ongoing strength in MFC and Space, with opportunities for margin improvement as legacy headwinds subside.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be monitoring (1) the pace and execution of missile framework production ramps, (2) meaningful progress in F-35 sustainment improvements and international deliveries, and (3) contract wins and backlog conversion in the Space and advanced technology segments. The effectiveness of increased R&D and capital spending, as well as the company’s ability to manage margin headwinds from major program initiations, will also be important indicators.
Lockheed Martin currently trades at $604.25, up from $597.27 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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