Latest news with #UtkarshShetti
Yahoo
6 days ago
- Business
- Yahoo
Lockheed profit dives 80% on $1.6 billion charge, shares tumble
By Utkarsh Shetti and Mike Stone (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, sending its shares down more than 8%. The company also trimmed its 2025 profit outlook 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 affected other defense companies with international customers. Lockheed's tariff risk is relatively low, as its supply chains and labor are largely domestic, said Brian Mulberry, portfolio manager at Zacks Investment Management. The company's hefty charge stemmed from difficulties with a classified program in its Aeronautics business and 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 Turkish Utility Helicopter Program (TUHP) saw a $95 million loss as well. This charge was due to a restructuring caused by U.S. government sanctions on Turkish entities and persons involved in the program, Taiclet said in a call with analysts. Lockheed is also engaged in a tussle with U.S. tax authorities who assert the company owes an additional $4.6 billion tax bill, executives said, adding they were pursuing a remedy that could include litigation. Additionally, the company provided an update on progress with upgrades on its F-35 jets, saying it had completed hardware integration and released new software on the fleet. Earlier this month, the Pentagon's program office confirmed the final delivery of 72 jets held in long-term storage in 2024. Lockheed's net income in the quarter fell to $342 million, or $1.46 per share from $1.64 billion, or $6.85 per share, a year earlier. Excluding these charges, 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. 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
6 days ago
- Business
- Yahoo
Lockheed profit dives 80% on $1.6 billion charge, shares tumble
By Utkarsh Shetti and Mike Stone (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, sending its shares down more than 8%. The company also trimmed its 2025 profit outlook 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 affected other defense companies with international customers. Lockheed's tariff risk is relatively low, as its supply chains and labor are largely domestic, said Brian Mulberry, portfolio manager at Zacks Investment Management. The company's hefty charge stemmed from difficulties with a classified program in its Aeronautics business and 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 Turkish Utility Helicopter Program (TUHP) saw a $95 million loss as well. This charge was due to a restructuring caused by U.S. government sanctions on Turkish entities and persons involved in the program, Taiclet said in a call with analysts. Lockheed is also engaged in a tussle with U.S. tax authorities who assert the company owes an additional $4.6 billion tax bill, executives said, adding they were pursuing a remedy that could include litigation. Additionally, the company provided an update on progress with upgrades on its F-35 jets, saying it had completed hardware integration and released new software on the fleet. Earlier this month, the Pentagon's program office confirmed the final delivery of 72 jets held in long-term storage in 2024. Lockheed's net income in the quarter fell to $342 million, or $1.46 per share from $1.64 billion, or $6.85 per share, a year earlier. Excluding these charges, 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.
Mint
6 days 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
6 days ago
- Business
- Yahoo
Northrop Grumman raises 2025 profit forecast on strong demand for weapons
By Utkarsh Shetti and Mike Stone (Reuters) -Northrop Grumman raised its annual profit forecast on Tuesday, betting on sustained demand for its military aircraft and defense systems as geopolitical tensions simmer. A protracted Russia-Ukraine war and conflict in the Middle East have boosted demand for weapons from defense contractors such as Northrop. The company, which makes the B-2 Spirit stealth bombers that were used in U.S. strikes on Iran's nuclear sites in June, is also expected to benefit from President Donald Trump's defense budget for next year that seeks more missiles and drones. Northrop had cut its 2025 profit forecast in April to between $24.95 per share and $25.35 per share after manufacturing costs spiraled in an attempt to ramp production of its B-21 stealth bombers, causing a $477 million hit. It now expects annual profit per share of $25.00 to $25.40 Northrop, however, narrowed its revenue forecast for the year to between $42.05 billion and $42.25 billion, compared with $42 billion to $42.5 billion earlier. Despite the strong demand, supply chain issues caused by the COVID-19 pandemic linger, affecting production in industries including defense. The defense contractor's second-quarter sales rose to $10.35 billion from $10.22 billion a year ago. It reported a quarterly net income of $1.17 billion, or a per-share profit of $8.15, compared with the $940 million, or $6.36 per share, a year ago.
Yahoo
6 days ago
- Business
- Yahoo
Northrop Grumman raises 2025 profit forecast on strong demand for weapons
By Utkarsh Shetti and Mike Stone (Reuters) -Northrop Grumman raised its annual profit forecast on Tuesday, betting on sustained demand for its military aircraft and defense systems as geopolitical tensions simmer. A protracted Russia-Ukraine war and conflict in the Middle East have boosted demand for weapons from defense contractors such as Northrop. The company, which makes the B-2 Spirit stealth bombers that were used in U.S. strikes on Iran's nuclear sites in June, is also expected to benefit from President Donald Trump's defense budget for next year that seeks more missiles and drones. Northrop had cut its 2025 profit forecast in April to between $24.95 per share and $25.35 per share after manufacturing costs spiraled in an attempt to ramp production of its B-21 stealth bombers, causing a $477 million hit. It now expects annual profit per share of $25.00 to $25.40 Northrop, however, narrowed its revenue forecast for the year to between $42.05 billion and $42.25 billion, compared with $42 billion to $42.5 billion earlier. Despite the strong demand, supply chain issues caused by the COVID-19 pandemic linger, affecting production in industries including defense. The defense contractor's second-quarter sales rose to $10.35 billion from $10.22 billion a year ago. It reported a quarterly net income of $1.17 billion, or a per-share profit of $8.15, compared with the $940 million, or $6.36 per share, a year ago.
