Lockheed Martin (LMT) investor relations material

Executive summary

• Q1 2026 sales were $18.0B, with 69% from the U.S. Government and 31% from international customers; net earnings were $1.5B ($6.44 per share), down from $1.7B ($7.28 per share) year-over-year.

• Segment operating profit was $1.8B, with consolidated operating profit at $2.06B and a substantial backlog of $186.4B at quarter-end.

• Demand for defense technologies and space systems remains high, with new multi-year agreements to accelerate munitions production and a historic Artemis II lunar mission completed.

• Strategic investments in AI, robotics, and counter-UAS solutions continue, alongside expansion of the Venture Fund to $1B.

• No share repurchases in Q1; $816M in dividends paid and $1B in long-term debt repaid.

Financial highlights

• Sales were $18.0B, flat year-over-year, with gross profit of $2.1B and operating profit of $2.1B, both down from prior year.

• Segment operating profit was $1.8B; segment operating margin for Q1 2026 was 10.1%.

• EPS was $6.44, down 12% year-over-year; net earnings fell to $1.5B.

• Free cash flow was negative $291M, impacted by working capital timing and ERP implementation.

• Capital expenditures were $511M in Q1, up year-over-year.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: sales of $77.5B–$80.0B, operating profit of $8.4B–$8.7B, and free cash flow of $6.5B–$6.8B.

• Margins expected to improve in the second half of 2026 as production milestones are achieved; segment operating margin outlook is 10.9%.

• Diluted EPS forecasted at $29.35–$30.25 for 2026.

• Backlog stood at $186.4B, with 34% expected to convert to revenue in the next 12 months.

• Anticipates sales and operating profit growth of ~5% and 25% year-over-year, respectively.