Lockheed Martin 8-K
PositiveEarningsGuidance raised
PAC-3 MSE’s $52.5B award drives record $292B backlog; FY2026 sales, EPS and free cash flow outlooks rise for a second straight quarter.
Filed 2026-10-22 06:26 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results and updated FY2026 outlook. Sales rose 11% and net earnings rose 14%; Lockheed Martin raised its sales, diluted EPS and free cash flow outlook, and said it raised financial guidance for the second consecutive quarter. Record backlog reached $292.0B, including $52.5B tied to the multi-year PAC-3 MSE interceptor award; the company also raised its dividend for the 24th consecutive year.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Sales | $20.7B, +11% Y/Y | $58.8B, +7% Y/Y |
| Operating profit, GAAP | $2.44B, +7% Y/Y | $6.99B, +29% Y/Y |
| Business segment operating profit, non-GAAP | $2.23B, +10% Y/Y | $6.21B, +33% Y/Y |
| Net earnings | $1.85B, +14% Y/Y | $5.17B, +41% Y/Y |
| Diluted EPS | $7.97, +15% Y/Y | $22.36, +43% Y/Y |
| Cash from operations | $3.44B, -8% Y/Y | $6.89B, +29% Y/Y |
| Free cash flow, non-GAAP | $3.0B, -10% Y/Y | $5.63B, +35% Y/Y |
- Sales increased across all four segments. Missiles and Fire Control grew 24%, led by production ramps in PAC-3, THAAD, GMLRS and PrSM; Aeronautics grew 13%, primarily on higher F-35 and C-130 sales.
- Backlog was a record $292.0B, up 27% since Q2 2026. Q3 cash from operations and free cash flow declined primarily because customer receipts were higher in Q3 2025.
- F-35 lots 20 and higher remain under negotiation with the U.S. Government. Costs on the Lot 20 advance acquisition contract exceeded current authorization and funding in Q3; without additional authorization and funding, future results, cash flows and financial condition will be negatively affected.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | FY2026 | ≈$80B-$82B | $79.75B-$81.75B | Raised |
| Business segment operating profit, non-GAAP | FY2026 | ≈$8.575B-$8.675B | $8.5B-$8.7B | Narrowed |
| Total FAS/CAS pension adjustment | FY2026 | ≈$1.365B | ≈$1.365B | Reaffirmed |
| Diluted EPS | FY2026 | ≈$30.35-$30.75 | $29.95-$30.65 | Raised |
| Cash from operations | FY2026 | ≈$10B-$10.2B | $9.2B-$9.4B | Raised |
| Capital expenditures | FY2026 | ≈$2.1B-$2.3B | $2B-$2.4B | Narrowed |
| Free cash flow, non-GAAP | FY2026 | ≈$7.8B-$8B | $7B-$7.2B | Raised |
| Consolidated operating profit, GAAP | FY2026 | ≈$9.52B-$9.62B | ≈$9.495B-$9.695B | Narrowed |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Sales | FY2026 | ≈$79.75B-$81.75B | ≈$80B-$82B | raised |
| Business segment operating profit, non-GAAP | FY2026 | ≈$8.5B-$8.7B | ≈$8.575B-$8.675B | narrowed (raised low end, lowered high end) |
| Consolidated operating profit, GAAP | FY2026 | ≈$9.495B-$9.695B | ≈$9.52B-$9.62B | narrowed (raised low end, lowered high end) |
| Total FAS/CAS pension adjustment | FY2026 | ≈$1.365B | ≈$1.365B | reaffirmed |
| Diluted EPS | FY2026 | ≈$29.95-$30.65 | ≈$30.35-$30.75 | raised |
| Cash from operations | FY2026 | ≈$9.2B-$9.4B | ≈$10B-$10.2B | raised |
| Capital expenditures | FY2026 | ≈$2B-$2.4B | ≈$2.1B-$2.3B | narrowed (raised low end, lowered high end) |
| Free cash flow, non-GAAP | FY2026 | ≈$7B-$7.2B | ≈$7.8B-$8B | raised |
Investor Takeaways
- Watch for additional U.S. Government authorization and funding for F-35 Lot 20 and later production contracts; the company warns that a shortfall would negatively affect future results and cash flows.
- FY2026 results against the updated sales, diluted EPS and free cash flow ranges will show whether the higher outlook is achieved.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-22 14:34:15Z