The defense sector is witnessing extraordinary momentum, and Lockheed Martin stands at the forefront with a staggering $179 billion order backlog. This colossal figure, representing more than two and a half years of secured revenue, provides the aerospace and defense giant with exceptional operational visibility and underscores a period of sustained demand for its advanced technology systems.
Financial Performance and Upgraded Outlook
Lockheed Martin’s operational strength was clearly demonstrated in its third-quarter 2025 results. The company reported a 9% revenue increase to $18.6 billion, while earnings per share reached $6.95, substantially surpassing projections from market analysts.
Bolstered by this robust performance, management has raised its full-year 2025 guidance. The corporation now anticipates revenue in the range of $74.25 billion to $74.75 billion. The profit per share forecast has also been revised upward.
The company’s financial health is further highlighted by a significant surge in free cash flow, which jumped from $2.1 billion to $3.3 billion in the third quarter. This powerful cash generation provides a solid foundation for the company’s capital allocation strategy.
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Institutional Investors Demonstrate Strong Confidence
Major financial institutions have been actively accumulating Lockheed Martin shares, reflecting a highly bullish sentiment regarding the company’s strategic direction and financial stability. Notable recent position increases include:
- Acadian Asset Management expanded its holding by a massive 437 percent.
- Allworth Financial increased its stake by nearly 39 percent.
- ABC Arbitrage grew its position by almost 28 percent.
These substantial investments from sophisticated market participants signal deep confidence in the corporation’s long-term prospects.
Sustained Dividend Growth and Production Capacity
Lockheed Martin’s board of directors has approved a 5 percent increase in the quarterly dividend, marking the 23rd consecutive year of dividend growth. This consistent return of value to shareholders is powerfully supported by the company’s strong and growing free cash flow.
The record $179 billion order book confirms that production lines are fully booked for years to come, with capacity secured through 2028. This exceptional demand is primarily driven by global requirements for advanced weapon systems and significant contract awards in aviation and missile programs. As defense budgets continue to expand worldwide, Lockheed Martin’s unprecedented backlog positions it for a potentially extended cycle of profitability.
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