Lockheed Martin has reported that its sales reached $17.96bn in the first quarter (Q1) of 2025, up 4% from $17.19bn in the same period last year.
For the quarter ending 30 March 2025, net earnings also rose to $1.71bn, marking an increase from the $1.54bn reported in Q1 2024.
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Diluted earnings per share (EPS) in Q1 2025 was $7.28, a 14% increase year-on-year compared to $6.39 in Q1 2025.
The cash from operations stood at $1.40bn in Q1 2025, down from $1.63bn in the previous year. This decrease was primarily attributed to an increase in contract assets, higher insurance costs, and the timing of payments for employee-related accruals.
The company’s free cash flow was $955m, compared to $1.25bn in the first quarter of 2024.
The reduction in free cash flows primarily stemmed from factors influencing cash from operations and an increase in expenditures related to software.
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By GlobalDataLockheed Martin disclosed segment margins of 11.6%, with each of its four divisions achieving returns in the double digits. This was propelled by stronger-than-anticipated results from contract completions within its Aeronautics, Rotary and Mission Systems (RMS), and Space units.
The Missiles and Fire Control (MFC) segment saw an increase in sales, which went up by 13% compared to the same period in 2024.
This was largely due to a $370m increase in sales from tactical and strike missile programs, including the production ramp-up on programs such as Joint Air-to-Surface Standoff Missile (JASSM), Long Range Anti-Ship Missile (LRASM), and precision fires.
MFC’s operating profit surged by 50%, with a $135m increase in profit booking rate adjustments and a $25m increase from production ramp-up.
RMS also reported a sales increase of 6%, driven by a $145m rise in sales from integrated warfare systems and sensors programs, and a $125m increase from Sikorsky helicopter programmes.
RMS’ operating profit increased by 21%, with contributions from profit booking rate adjustments, favourable contract mix, cost recoveries, and higher volume.
Lockheed Martin chairman, president and CEO Jim Taiclet said: “The momentum we created last year continued into the first quarter of 2025, with sales growing 4% year-over-year and free cash flow generation of $955m. We continued investing in the business with over $850m of research and development and capital expenditures in the quarter, and returned $1.5bn to shareholders through dividends and share repurchases.
“These solid first quarter results reinforce confidence in our ability to achieve the full year 2025 financial guidance we laid out in January, demonstrating the resilience and adaptability of Lockheed Martin’s franchises amidst a highly dynamic geopolitical and technical environment.”
The company has kept its 2025 outlook unchanged and expects “to achieve the consolidated full year outlook of mid single digit sales growth, solid 11% margins, and high single digit free cash flow growth”.
The 2025 full-year sales is projected to be between $73.75bn and $74.75bn, with cash from operations expected to range from $8.50bn to $8.70bn and free cash flow projected to be between $6.60bn and $6.80bn.
During the earnings call, Lockheed Martin chief financial officer Evan Scott noted an opportunity to increase backlog in 2025.
He said: “As I mentioned earlier, the strong profit we realised in the first quarter provides an increased confidence in our ability to absorb currently estimated 2025 profit impacts from tariffs.”
Earlier in April 2025, the US Army and Lockheed Martin completed a test launch of the Precision Strike Missile from an M270A2 Multiple Launch Rocket System at White Sands Missile Range in New Mexico.
