Lockheed Martin (LMT) investor relations material

Executive summary

• Achieved record backlog of $230–$230.4 billion, up significantly year-over-year, driven by major contract wins including a $35 billion THAAD contract and robust order intake.

• Q2 2026 sales rose 10–11% year-over-year to $20.1 billion, with net earnings of $1.8 billion and EPS of $7.94, reflecting strong rebounds in Aeronautics and Missiles and Fire Control.

• Free cash flow rebounded to $2.9 billion, supporting investments in manufacturing, automation, and innovation.

• Raised 2026 guidance across all key metrics, citing accelerating revenue growth, higher earnings per share, and robust demand across all business segments.

• Strategic investments, acquisitions, and international partnerships underpin growth and resilience.

Financial highlights

• Q2 sales reached $20.1 billion, up 10–11% year-over-year, with segment operating margin at 10.8% and consolidated operating margin at 12.4%.

• Net earnings for Q2 were $1.8 billion, with EPS of $7.94; free cash flow improved by $3 billion year-over-year.

• Book-to-bill ratio was 3.2:1, with $65 billion in new orders fueling backlog growth.

• Capital expenditures and R&D investments totaled $876–$900 million in Q2.

• Returned $796–$800 million to shareholders via dividends in Q2.

Outlook and guidance

• 2026 sales guidance raised to $79.75–$81.75 billion, with segment operating profit outlook at $8.5–$8.7 billion and EPS projected at $29.95–$30.65.

• Free cash flow guidance increased to $7–$7.2 billion, with capital expenditures expected at $2–$2.4 billion.

• All segments expected to accelerate growth in the second half of 2026, except Space, which saw a slight decrease in profit guidance.

• Approximately 30% of backlog expected to convert to revenue in the next 12 months.

• U.S. defense budget environment remains favorable, supporting continued demand.