As geopolitical tensions intensify globally, the world’s largest defense contractor is experiencing unprecedented demand for its military systems. Lockheed Martin has secured multiple billion-dollar agreements in recent weeks, with several hundred million dollars in contracts awarded alone during this period. With a record $179 billion order backlog and significantly upgraded profit projections, market observers are questioning whether the defense giant is positioned for sustained growth.
Quarterly Performance Exceeds Market Expectations
Lockheed Martin’s operational strength was clearly demonstrated in its third-quarter 2025 financial results. The corporation reported $18.6 billion in revenue, representing a 9 percent increase compared to the same period last year. Net earnings reached $1.6 billion, translating to $6.95 per share – substantially surpassing analyst predictions of $6.36 per share.
The company’s cash generation proved particularly impressive, with operating activities yielding $3.7 billion and free cash flow amounting to $3.3 billion. From this amount, $1.8 billion was returned to shareholders through dividend distributions and stock repurchases. Concurrently, management raised the quarterly dividend by 5 percent to $3.45 per share.
In response to these strong results, Lockheed Martin elevated its full-year guidance. The company now anticipates earnings per share between $22.15 and $22.35, up from previous projections of $21.70 to $22.00. Revenue expectations were also adjusted upward, with the lower end increasing from $73.75 billion to $74.25 billion.
Contract Awards Strengthen Long-Term Outlook
Recent contract awards highlight the robust demand for Lockheed Martin’s defense portfolio. In mid-November, the corporation received a $454 million contract modification from the U.S. Air Force for the Mk21A reentry vehicle program. This adjustment brings the total program value to $1.48 billion, with performance extending through September 2032.
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Just days later, the U.S. State Department authorized a potential $105 million sale of Patriot air defense systems to Ukraine, with Lockheed Martin serving as primary contractor. These developments illustrate how current global security concerns are driving demand for advanced defense technologies.
The company’s record $179 billion order backlog provides exceptional visibility for future operations. Recent major awards include an approximately $11 billion naval contract for up to 99 CH-53K King Stallion helicopters, alongside a nearly $10 billion agreement for Patriot missiles.
Strategic Investments in Emerging Technologies
Beyond traditional defense operations, the corporation is increasingly focusing on innovative technological solutions. In late October, Lockheed Martin committed $50 million to Saildrone to advance unmanned surface vehicle development for the U.S. Navy. These autonomous platforms are designed to incorporate defense technologies for military applications.
Early November saw the introduction of STAR.OS™, a groundbreaking platform for artificial intelligence integration that enables diverse AI systems to operate seamlessly together. Simultaneously, the company established a strategic collaboration with Google Public Sector to embed generative AI capabilities into local infrastructure for national security applications.
Lockheed Martin’s leadership position in programs including the F-35 Lightning II, the Aegis combat system, and multiple missile defense platforms positions the company to benefit from growing global defense expenditures. Its diversified portfolio across aeronautics, missiles and fire control, rotary and mission systems, and space systems provides multiple growth avenues within an increasingly complex international security landscape.
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