Latest news with #LMT
Yahoo
7 minutes ago
- Business
- Yahoo
The Top 5 Analyst Questions From Lockheed Martin's Q2 Earnings Call
Lockheed Martin's second quarter was marked by program-related losses and operational challenges that led to a significant shortfall versus Wall Street's expectations. Management attributed these results primarily to $1.8 billion in charges across several legacy programs, including classified aeronautics and helicopter contracts. CEO James Taiclet described the financial impact as 'disconcerting,' noting that unexpected cost growth on long-term contracts required a comprehensive reassessment of program assumptions and management oversight. These actions reflect Lockheed Martin's effort to address technical and contractual challenges while maintaining a focus on supporting key defense priorities. Is now the time to buy LMT? Find out in our full research report (it's free). 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 Adjusted EBITDA: $970 million vs analyst estimates of $2.53 billion (5.3% margin, 61.6% 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 Backlog: $166.5 billion at quarter end, up 5.2% year on year Market Capitalization: $98.37 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions Lockheed Martin's Q2 Earnings Call Myles Walton (Wolfe Research) pressed on whether problematic development programs have truly been derisked. CEO James Taiclet emphasized new oversight teams and recurring senior management reviews, while CFO Evan Scott committed to continued transparency and active risk monitoring. Ronald Epstein (Bank of America) questioned why it took large charges to change review processes and how these charges affect cash flow. Taiclet explained that new cost risks were identified only after updated monitoring, and Scott detailed the cash flow impact, noting a $500 million usage this year and step-down in future years. Rob Stallard (Vertical Research) asked about reduced F-35 procurement in government requests and the flexibility to fill slots with export orders. Taiclet described the congressional process and highlighted the strength of the F-35 backlog and flexibility to adjust production to international demand. Sheila Kahyaoglu (Jefferies) sought clarity on a $4.6 billion IRS tax claim and its effect on future cash flow. Scott stated the company disputes the tax position, has reserved $100 million, and expects little impact on long-term cash flows due to new legislation and pension assumptions. Peter Arment (Baird) inquired about the Golden Dome missile defense opportunity and its timing for backlog growth. Taiclet said the opportunity remains unquantified until contracts are issued but highlighted ongoing architectural discussions and readiness to invest in capacity. Catalysts in Upcoming Quarters In coming quarters, our team will watch (1) progress on restructuring or derisking legacy contracts, especially in classified programs and helicopter platforms, (2) the pace of new contract awards for missile and aircraft systems that could drive backlog growth, and (3) margin stabilization as production scales and operational improvements take hold. Developments in government defense budgets and the resolution of tax matters will also be important to track. Lockheed Martin currently trades at $423, down from $461.34 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). 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Business Insider
15 hours ago
- Business
- Business Insider
Lockheed Martin awarded $2.06B Missile Defense Agency contract modification
Lockheed Martin (LMT) was awarded a $2.06B modification to a previously awarded contract for the production of Terminal High Altitude Area Defense Interceptors to support the U.S. government. The total value of this contract is increased from $8.35B to $10.42B. Under this modification, the contractor will produce THAAD components under fixed-price incentive contract line-item numbers. The work has an expected completion date Dec. 1, 2029. One offer was solicited, and one offer was received. Fiscal 2024 and fiscal 2025 procurement funds in the amount of $284.92M are being obligated at time of award. The Missile Defense Agency is the contracting activity. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Yahoo
6 days ago
- Business
- Yahoo
Lockheed Martin Cuts Full-Year Earnings Outlook Following Second-Quarter Miss
Lockheed Martin (LMT) lowered its full-year earnings outlook on Tuesday as the defense contractor's 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
Yahoo
7 days ago
- Business
- Yahoo
Lockheed Martin Shares Plunge After $1.6B Classified Charge Crushes Profit
July 22 - Lockheed Martin (NYSE:LMT) shares fell more than 6% Tuesday after the defense contractor reported an 80% plunge in second-quarter profit. This profit decline was due to the $1.6 billion pretax charge tied to a classified Aeronautics program. Net income dropped to $342 million, or $1.46 per share, compared with $1.64 billion, or $6.85 per share, a year earlier. The company also cut its 2025 operating profit outlook by $1.5 billion to $6.65 billion. The charge included $950 million related to the undisclosed program and $570 million connected to issues with Canada's CH-148 Cyclone helicopter deal. Lockheed said it is in discussions with the Canadian government to amend contract terms. Adjusted earnings came in at $7.29 per share, topping analysts' average estimate of $6.44, according to LSEG. However, revenue missed forecasts, coming in at $18.16 billion versus the $18.57 billion consensus. Lockheed mentioned elevated expenses on fixed-price contracts, numerous entered into prior to the post-pandemic rise in labour and materials costs. The company added inflation and a persistent lack of supply chain availability is straining long-term defense systems. This article first appeared on GuruFocus.
Business Wire
7 days ago
- Business
- Business Wire
Securities Fraud Investigation Into Lockheed Martin Corporation (LMT) Announced – Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz announces an investigation of Lockheed Martin Corporation ('Lockheed' or the 'Company') (NYSE: LMT) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON LOCKHEED MARTIN CORPORATION (LMT), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On July 22, 2025, Lockheed released its second quarter 2025 financial results, reporting sharply lower second-quarter earnings, including $1.6 billion in program losses. The Company disclosed it was forced to recognize $950 million in losses related to its Aeronautics Classified program due to 'design, integration, and test challenges, as well as other performance issues' as well as 'significant changes to its processes and testing approach.' The Company also reported $570 million in losses on its Canadian Maritime Helicopter Program due in part to providing 'additional mission capabilities, enhanced logistical support, fleet life extension, and revised expectations regarding flight hours.' The Company further reported a $95 million charge related to its Turkish Utility Helicopter Program due to the 'current status of the program.' The Company stated it is in 'ongoing discussion' with its customers regarding a potential 'restructure' of certain contractual terms and conditions. On this news, Lockheed's stock price fell as much as 9% during intraday trading on July 22, 2025, thereby injuring investors. Contact Us To Participate or Learn More: If you purchased Lockheed securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us: The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 Call us at: 310-914-5007 Email us at: info@ Visit our website at: Follow us for updates on Twitter at If you inquire by email, please include your mailing address, telephone number, and number of shares purchased. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
