Lockheed Martin 8-K
PositiveEarningsGuidance raised
PAC-3, THAAD and PrSM production ramps lift sales as guidance rises; earnings rebound also reflects prior-year program losses that did not recur.
Filed 2026-07-23 06:30 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 guidance. Sales increased 11% on higher volume across all segments and munitions production ramps; net earnings also benefited from prior-year program losses and other charges that did not recur. The company reported $65B of new orders and record backlog of $230.4B, including the multi-year THAAD interceptor contract.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Sales | $20.1B | $18.2B | 11% |
| Consolidated operating profit (GAAP) | $2.48B | $748M | 231% |
| Business segment operating profit (non-GAAP) | $2.16B | $571M | 279% |
| Net earnings (GAAP) | $1.84B | $342M | 437% |
| Diluted EPS | $7.94 | $1.46 | 444% |
| Cash from operations | $3.24B | $201M | 1,510% |
| Free cash flow (non-GAAP) | $2.92B | $(150)M | n/m |
- Operating profit growth reflected $1.6B of prior-year program losses and a $66M fixed-asset write-off, plus higher volume, including production ramps for PAC-3, THAAD and PrSM.
- Cash from operations and free cash flow increased primarily due to customer-receipt timing and lower tax payments. Cash and cash equivalents were $3.79B at quarter-end.
- Backlog was $230.4B, up from $193.6B at 12/31/2025. H1 2026 share repurchases were $0 vs $1.25B in H1 2025; common shares reported in stockholders’ equity were 230M vs 232M at year-end 2025.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | FY2026 | ≈$79.75B-$81.75B | $77.5B-$80B | Raised |
| Business segment operating profit (non-GAAP) | FY2026 | ≈$8.5B-$8.7B | $8.425B-$8.675B | Raised |
| Consolidated operating profit (GAAP) | FY2026 | ≈$9.495B-$9.695B | ≈$9.435B-$9.685B | Raised |
| Total FAS/CAS pension adjustment | FY2026 | ≈$1.365B | ≈$1.365B | Reaffirmed |
| Diluted EPS | FY2026 | ≈$29.95-$30.65 | $29.35-$30.25 | Raised |
| Cash from operations | FY2026 | ≈$9.2B-$9.4B | $9.15B-$9.45B | Narrowed |
| Capital expenditures | FY2026 | ≈$2B-$2.4B | $2.5B-$2.8B | Lowered |
| Free cash flow (non-GAAP) | FY2026 | ≈$7B-$7.2B | $6.5B-$6.8B | Raised |
Investor Takeaways
- Watch whether production ramps and higher customer demand translate into sales growth and segment profit consistent with the raised FY2026 outlook.
- Backlog conversion and cash generation are key measures of whether the record order position supports the higher free cash flow outlook.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3