Latest news with #JimTaiclet
Mint
19 hours ago
- Business
- Mint
Lockheed Martin Q2 Results: Defence equipment maker's net profit tanks 80%, revenue down to $18.16 billion
July 22 (Reuters) - Lockheed Martin reported on Tuesday that its second-quarter profit plunged by about 80%, after the U.S. defense group recorded a pretax loss of $1.6 billion, mainly linked to a classified program within its Aeronautics segment. 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)
Yahoo
a day ago
- Business
- Yahoo
Lockheed Martin (NYSE:LMT) Reports Sales Below Analyst Estimates In Q2 Earnings, Stock Drops
Security and Aerospace company Lockheed Martin (NYSE:LMT) fell short of the market's revenue expectations in Q2 CY2025, with sales flat year on year at $18.16 billion. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $74.25 billion at the midpoint. Its GAAP profit of $1.46 per share was 77.3% below analysts' consensus estimates. Is now the time to buy Lockheed Martin? Find out in our full research report. Lockheed Martin (LMT) Q2 CY2025 Highlights: Revenue: $18.16 billion vs analyst estimates of $18.59 billion (flat year on year, 2.3% miss) EPS (GAAP): $1.46 vs analyst expectations of $6.42 (77.3% miss) Adjusted EBITDA: $1.09 billion vs analyst estimates of $2.53 billion (6% margin, 57% miss) The company reconfirmed its revenue guidance for the full year of $74.25 billion at the midpoint EPS (GAAP) guidance for the full year is $21.85 at the midpoint, missing analyst estimates by 19.7% Operating Margin: 4.1%, down from 11.9% in the same quarter last year Free Cash Flow was -$150 million, down from $1.51 billion in the same quarter last year Backlog: $166.5 billion at quarter end, up 5.2% year on year Market Capitalization: $107.9 billion "Over the course of the past few months, Lockheed Martin systems and platforms once again proved highly effective in combat operations and in deterring further aggression. Our F-35s, F-22s, PAC-3, THAAD, Aegis and many others, crewed by the soldiers, airmen, sailors, marines and guardians of the U.S. and its Allies, and supported by our own dedicated teammates, performed extremely well in the most crucial and challenging situations," said Lockheed Martin Chairman, President and CEO Jim Taiclet. Company Overview Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE:LMT) specializes in defense, space, homeland security, and information technology products. Revenue Growth A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Lockheed Martin grew its sales at a sluggish 2.7% compounded annual growth rate. This fell short of our benchmarks and is a tough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Lockheed Martin's annualized revenue growth of 3.2% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. We can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Lockheed Martin's backlog reached $166.5 billion in the latest quarter and averaged 7.3% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Lockheed Martin's products and services but raises concerns about capacity constraints. This quarter, Lockheed Martin's $18.16 billion of revenue was flat year on year, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 5.3% over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below average for the sector. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Lockheed Martin has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 11.9%. Looking at the trend in its profitability, Lockheed Martin's operating margin decreased by 4.9 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Lockheed Martin generated an operating margin profit margin of 4.1%, down 7.7 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Lockheed Martin, its EPS declined by 4.9% annually over the last five years while its revenue grew by 2.7%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. Diving into the nuances of Lockheed Martin's earnings can give us a better understanding of its performance. As we mentioned earlier, Lockheed Martin's operating margin declined by 4.9 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Lockheed Martin, its two-year annual EPS declines of 19.4% show it's continued to underperform. These results were bad no matter how you slice the data. In Q2, Lockheed Martin reported EPS at $1.46, down from $6.85 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects Lockheed Martin's full-year EPS of $17.76 to grow 58.2%. Key Takeaways from Lockheed Martin's Q2 Results We were impressed by how significantly Lockheed Martin blew past analysts' backlog expectations this quarter. On the other hand, its full-year EPS guidance missed and its revenue fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 7.3% to $427.78 immediately following the results. Lockheed Martin underperformed this quarter, but does that create an opportunity to invest right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
a day ago
- Business
- CTV News
Lockheed Martin second-quarter profit plummets on US$1.6 billion charge
An image of a CF-35, the Canadian variant of the F-35 fighter aircraft, is seen at the Lockheed Martin booth at the Canadian Association of Defence and Security Industries annual defence industry trade show CANSEC, in Ottawa. THE CANADIAN PRESS/Justin Tang Lockheed Martin reported on Tuesday that its second-quarter profit plunged by about 80 per cent, after the U.S. defense group recorded a pretax loss of US$1.6 billion, mainly linked to a classified program within its Aeronautics segment. The company's shares fell 7.9 per cent in premarket trading as the company also trimmed its 2025 profit estimate by $1.5 billion or 18 per cent 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)
Business Times
a day ago
- Business
- Business Times
Lockheed Martin's Q2 profit plummets on US$1.6 billion charge
[WASHINGTON] Lockheed Martin reported on Tuesday (Jul 22) that its second-quarter profit plunged by about 80 per cent, after the US defence giant recorded pre-tax losses of US$1.6 billion, mainly linked to a classified programme within its Aeronautics segment. Net income fell to US$342 million, or US$1.46 per share, compared with US$1.64 billion, or US$6.85 per share, a year earlier. Lockheed said the charge stemmed from difficulties with a classified programme in its Aeronautics business and certain international helicopter programmes in its Sikorsky unit. Defence contractors are grappling with mounting cost pressures as inflation and supply chain disruptions drive up expenses on long-term programmes priced years ago. Many of these contracts – often fixed-price – were negotiated before the post-pandemic surge in labour, material, and component costs, forcing contractors such as Lockheed to absorb overruns. Apart from the US$950 million charge on the classified programme, Lockheed took a US$570 million hit on its work for the Canadian government relating to the procurement of its CH-148 Cyclone maritime helicopters. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up '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 programme. Excluding these charges, however, the defence giant posted an adjusted profit of US$7.29 per share, beating estimates of US$6.44 per share, per data compiled by LSEG. 'Overall, the company's foundation remains solid and resilient,' chief executive Jim Taiclet said in the company's earnings statement. Lockheed also missed Wall Street estimates for second-quarter revenue, which came in at US$18.16 billion, compared with expectations of US$18.57 billion. REUTERS
Yahoo
a day ago
- Business
- Yahoo
Lockheed Martin stock tumble as program losses hit earnings
-- Lockheed Martin Corporation shares fell by more than 8% premarket on Tuesday after the defense contractor reported second-quarter earnings that significantly missed analyst expectations, weighed down by $1.6 billion in program losses. The aerospace giant posted earnings of $1.46 per share for the second quarter, far below the analyst consensus of $6.54. Revenue came in at $18.2 billion, slightly under the consensus estimate of $18.58 billion but up marginally from $18.1 billion in the same quarter last year. The substantial earnings miss was primarily driven by pre-tax losses on programs totaling $1.6 billion, which reduced earnings per share by $5.83. These included a $950 million loss on a classified Aeronautics program, a $570 million loss on the Canadian Maritime Helicopter Program, and a $95 million loss on the Turkish Utility Helicopter Program. "The program charges taken in the quarter – which resulted from our ongoing rigorous monitoring and review processes – are a necessary step as we continue to take action to improve program execution," said Lockheed Martin (NYSE:LMT) Chairman, President and CEO Jim Taiclet. Despite these challenges, the company reaffirmed its 2025 guidance for sales of $73.75-$74.75 billion, in line with the $74.4 billion analyst estimate. However, Lockheed cut its full-year EPS forecast to $21.70-$22.00, well below the previous guidance of $27.00-$27.30 and the analyst estimate of $27.46. Cash flow also weakened significantly, with cash from operations falling to $201 million from $1.9 billion a year earlier, while free cash flow turned negative at $(150) million compared to $1.5 billion in Q2 2024. "Our relentless focus on operational performance combined with our disciplined capital allocation strategy will enable us to deliver value to our shareholders, while providing the advanced solutions that America and its allies need," Taiclet added. Related articles Lockheed Martin stock tumble as program losses hit earnings After soaring 149%, this stock is back in our AI's favor - & already +25% in July Surge of 50% since our AI selection, this chip giant still has great potential Sign in to access your portfolio
