Lockheed Martin Q2 Results: Defence equipment maker's net profit tanks 80%, revenue down to $18.16 billion
The company's shares fell 7.9% in premarket trading as the company also trimmed its 2025 profit estimate by $1.5 billion or 18% and said it now targets $6.65 billion in operating profit for the year.
This new guidance, revised down since the company's last estimate in April, did not include potential impacts from tariffs which have impacted other defense companies with international customers.
"Overall, the company's foundation remains solid and resilient," Chief Executive Jim Taiclet said in the company's earnings statement.
Net income fell to $342 million, or $1.46 per share, compared with $1.64 billion, or $6.85 per share, a year earlier. Lockheed said the charge stemmed from difficulties with a classified program in its Aeronautics business and several international helicopter programs in its Sikorsky unit.
Defense contractors are grappling with mounting cost pressures as inflation and supply chain disruptions drive up expenses on long-term programs priced years ago.
Many of these contracts — often fixed-price — were negotiated before the post-pandemic surge in labor, material, and component costs, forcing contractors such as Lockheed to absorb overruns.
Apart from the $950 million charge on the classified program, Lockheed took a $570 million hit on its work for the Canadian government relating to the procurement of its CH-148 Cyclone maritime helicopters.
"The company is in ongoing discussions with the customer regarding a potential restructure to certain contractual terms and conditions and to expand the scope of work that would be beneficial to both parties," Lockheed said of the program.
Excluding these charges, however, the group posted an adjusted profit of $7.29 per share, beating an average estimate of $6.44 per share according to data compiled by LSEG.
Lockheed missed Wall Street estimates for second-quarter revenue, which came in at $18.16 billion, compared with an average expectation of $18.57 billion. (Reporting by Utkarsh Shetti in Bengaluru and Mike Stone in Washington; Editing by Tasim Zahid and David Holmes)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
41 minutes ago
- Economic Times
Airbnb guests slammed with new $75 fee, but this legal loophole could save your family big
New 3% Rental Tax Approved by Narrow Vote In New Jersey What It Means for Ocean City Vacationers Live Events Why Ocean City Passed the Tax Opposition Says It's 'Taxing and Taxing' $60 Million in Online Rentals Last Year Alone Legal Loophole: How Families Can Avoid the Fee Airbnb Pushes Back New Jersey Residents Voice Frustration Online FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Families planning a beach getaway to Ocean City, New Jersey, may be in for an unpleasant surprise as a new 3% fee is being added to vacation rentals booked through platforms like Airbnb and Vrbo, as per a report. But while the new rule may raise costs for some travelers, there's one key loophole that could help visitors avoid the charge entirely, according to The Sun by a narrow 4-3 vote, the new tax means vacationers using online rental sites could see an extra $75 tacked onto a typical $2,500 stay, as per the report. The city says the new fee will go into effect in about 90 days after its passing, as per The Sun City's Council has added the tax because consumer demand has gone up for the shore town, according to the Member Dave Winslow said in defense of the tax, saying, "It's not astronomical," and then pointed out that, "Say on a $2,500 rental, it's only $75. Most people are not going to leave Ocean City for $75," as quoted in The Sun READ: Northern Lights alert! These US states could see the sky glow green tonight City officials argue that a surge in tourism is straining local resources, especially as demand for short-term rentals skyrockets, as per the report. Some homes are now offering one-night weekend stays, which council members say puts additional pressure on services like sanitation, policing, and public maintenance, according to the Member Jody Levchuk, who supported the fee, said that as more families visit, more resources are used, as reported by The last year, the council had tried to pass a similar tax, but the move was squashed, as per the of the city council member who voted against the new law, Keith Hartzell said that, 'We keep taxing and taxing and taxing," adding that, "It never ends," as quoted in the just last year, over $60 million in Ocean City rentals were processed through online platforms like Airbnb and Vrbo, according to OCNJ READ: TD Bank tells employees: Get ready to work four days in office! Following trend among largest Canadian banks However there is a catch in the new tax and potentially good news for budget-conscious families, the new tax only applies to bookings made through online travel agencies, as per The Sun report. If you book your beach house through a local real estate office, the fee doesn't apply, according to The Sun report. You can also opt to stay in hotels and motels to exempt from paying the tax, as per the has spoken out against the move, warning that the added cost could hurt local businesses and push families out, according to the platform's public policy manager Alain Xiong-Calmes said in a statement to The US Sun, "In Ocean City, where most guests come from within the New Jersey region, this short-term rental tax risks pricing out families seeking affordable stays," as quoted by in the New Jersey resident are unhappy with the move, with residents like Bobby Mesmer saying that "It's getting too expensive across the board," and added that, "The rentals are already expensive enough," as quoted by The residents even went on social media to express their frustration with the new fee, according to the report. One social media Facebook user said that, "My family has been enjoying OC for years but you have really priced yourself out of the market for a family vacation. We went down for the day last week and there was so much parking," adding, "Obviously, people are not renting this year including us," as quoted in the user wrote that, "Stop spending your hard earned money in OC," adding, "Plenty of other places to vacation," as quoted by The a 3% charge, so around $75 on a $2,500 Bookings through local realtors or hotels/motels are exempt.
Time of India
an hour ago
- Time of India
Airbnb guests slammed with new $75 fee, but this legal loophole could save your family big
New 3% Rental Tax Approved by Narrow Vote In New Jersey What It Means for Ocean City Vacationers Live Events Why Ocean City Passed the Tax Opposition Says It's 'Taxing and Taxing' $60 Million in Online Rentals Last Year Alone Legal Loophole: How Families Can Avoid the Fee Airbnb Pushes Back New Jersey Residents Voice Frustration Online FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Families planning a beach getaway to Ocean City, New Jersey, may be in for an unpleasant surprise as a new 3% fee is being added to vacation rentals booked through platforms like Airbnb and Vrbo, as per a report. But while the new rule may raise costs for some travelers, there's one key loophole that could help visitors avoid the charge entirely, according to The Sun by a narrow 4-3 vote, the new tax means vacationers using online rental sites could see an extra $75 tacked onto a typical $2,500 stay, as per the report. The city says the new fee will go into effect in about 90 days after its passing, as per The Sun City's Council has added the tax because consumer demand has gone up for the shore town, according to the Member Dave Winslow said in defense of the tax, saying, "It's not astronomical," and then pointed out that, "Say on a $2,500 rental, it's only $75. Most people are not going to leave Ocean City for $75," as quoted in The Sun READ: Northern Lights alert! These US states could see the sky glow green tonight City officials argue that a surge in tourism is straining local resources, especially as demand for short-term rentals skyrockets, as per the report. Some homes are now offering one-night weekend stays, which council members say puts additional pressure on services like sanitation, policing, and public maintenance, according to the Member Jody Levchuk, who supported the fee, said that as more families visit, more resources are used, as reported by The last year, the council had tried to pass a similar tax, but the move was squashed, as per the of the city council member who voted against the new law, Keith Hartzell said that, 'We keep taxing and taxing and taxing," adding that, "It never ends," as quoted in the just last year, over $60 million in Ocean City rentals were processed through online platforms like Airbnb and Vrbo, according to OCNJ READ: TD Bank tells employees: Get ready to work four days in office! Following trend among largest Canadian banks However there is a catch in the new tax and potentially good news for budget-conscious families, the new tax only applies to bookings made through online travel agencies, as per The Sun report. If you book your beach house through a local real estate office, the fee doesn't apply, according to The Sun report. You can also opt to stay in hotels and motels to exempt from paying the tax, as per the has spoken out against the move, warning that the added cost could hurt local businesses and push families out, according to the platform's public policy manager Alain Xiong-Calmes said in a statement to The US Sun, "In Ocean City, where most guests come from within the New Jersey region, this short-term rental tax risks pricing out families seeking affordable stays," as quoted by in the New Jersey resident are unhappy with the move, with residents like Bobby Mesmer saying that "It's getting too expensive across the board," and added that, "The rentals are already expensive enough," as quoted by The residents even went on social media to express their frustration with the new fee, according to the report. One social media Facebook user said that, "My family has been enjoying OC for years but you have really priced yourself out of the market for a family vacation. We went down for the day last week and there was so much parking," adding, "Obviously, people are not renting this year including us," as quoted in the user wrote that, "Stop spending your hard earned money in OC," adding, "Plenty of other places to vacation," as quoted by The a 3% charge, so around $75 on a $2,500 Bookings through local realtors or hotels/motels are exempt.
The Print
an hour ago
- The Print
India to resume tourist visas for Chinese citizens after five-year freeze
China suspended visas to Indian citizens and other foreigners around the same time due to the COVID-19 pandemic, but lifted those restrictions in 2022, when it resumed issuing visas for students and business travelers. Tensions between the two countries escalated following a 2020 military clash along their disputed Himalayan border. In response, India imposed restrictions on Chinese investments, banned hundreds of popular Chinese apps, and cut passenger routes. Hong Kong: India will resume issuing tourist visas to Chinese citizens from July 24 this year, its embassy in China said on Wednesday, the first time in five years as both countries move to repair their rocky relationship. Tourist visas for Indian nationals remained restricted until March this year, when both countries agreed to resume direct air service. Relations have gradually improved, with several high-level meetings taking place last year, including talks between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi in Russia in October. India and China share a 3,800 km (2,400-mile) border that has been disputed since the 1950s. The two countries fought a brief but brutal border war in 1962 and negotiations to settle the dispute have made slow progress. In July, India's foreign minister stated that both countries must resolve border friction, pull back troops and avoid 'restrictive trade measures' to normalise their relationship, he told China's Foreign Minister Wang Yi. This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content. Also Read: 'Will work out a deal with China where it'd give death penalty for fentanyl trafficking,' says Trump
