Lockheed Martin Corp. (LMT) reports strong Q4 earnings and raises full-year guidance, reinforcing its leadership in the defense sector amid heightened global tensions. The company’s performance underscores growing confidence in long-term defense spending.
- LMT’s Q4 2025 adjusted EPS of $8.15 exceeded expectations by $0.32
- Revenue reached $18.9 billion, up 14% YoY
- Backlog increased to $214 billion, a 6% rise from Q3 2025
- Adjusted operating margin expanded to 12.7%
- Company announced $2 billion share buyback and 15% dividend hike
- RTX and GD also reported growth, but LMT led in margin performance
Lockheed Martin Corp. (LMT) delivered adjusted earnings per share of $8.15 for Q4 2025, surpassing analyst expectations by $0.32 and marking a 14% year-over-year increase. Revenue reached $18.9 billion, driven by robust demand for F-35 fighter jets, missile defense systems, and space-based surveillance platforms. The company also announced a 15% increase in its annual dividend and a $2 billion share buyback authorization. The results come amid sustained fiscal support for defense programs across the U.S. and allied nations, with the Department of Defense allocating $886 billion for fiscal year 2026—$48 billion more than in the previous year. Lockheed’s backlog now stands at $214 billion, up 6% from Q3 2025, reflecting strong contract wins in hypersonics and next-generation air dominance platforms. Competitors Raytheon Technologies (RTX) and General Dynamics (GD) also reported positive momentum, with RTX posting a 9% revenue gain and GD’s defense segment achieving 12% organic growth. However, LMT’s margin expansion—adjusted operating margin rose to 12.7%—distinguishes it as a leader in execution efficiency and scale. Financial markets reacted positively, with LMT shares rising 3.2% in after-hours trading. Defense sector ETFs, including the Defense Sector ETF (LDAX), gained 2.1% over the following two days. Investors are now reassessing exposure to aerospace and defense equities, particularly those with diversified platforms and international partnerships.