# Lockheed Martin (LMT) Q2 2026 earnings

Results filed 2026-07-23 for the quarter ended 2026-06-28. Source page: https://earnings.opennash.com/companies/lmt/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/936468/000162828026049277/0001628280-26-049277-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Sales increase of 11% to $20.1 billion; net earnings of $1.8 billion, or $7.94 per share; cash from operations of $3.2 billion and free cash flow of $2.9 billion.

Lockheed Martin's second-quarter sales rose 11% to $20.1 billion, with growth in all four segments. Net earnings were $1.8 billion, or $7.94 per share, versus $342 million, or $1.46 per share, a year earlier, when $1.6 billion of program losses weighed on results. Free cash flow was $2.9 billion, and backlog hit a record $230 billion after a multi-year THAAD interceptor contract.
Management raised its 2026 outlook: sales of about $79,750 to $81,750 million, diluted EPS of about $29.95 to $30.65, and free cash flow of about $7,000 to $7,200 million. The tension is execution: munitions ramps must keep delivering, F-35 deliveries fell to 19 from 50 a year ago, and the Ultra Maritime acquisition is not included in guidance.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Sales | $20.1 billion | up 11% from a year ago | GAAP |
| Net earnings | $1.8 billion | compared to $342 million in the second quarter of 2025 | GAAP |
| Diluted earnings per share | $7.94 | compared to $1.46 in the second quarter of 2025 | GAAP |
| Consolidated operating profit | $2,479 | compared to $748 in the second quarter of 2025 | GAAP |
| Cash from operations | $3.2 billion | compared to $201 million in the second quarter of 2025 | GAAP |
| Free cash flow | $2.9 billion | compared to $(150) million in the second quarter of 2025 | non-GAAP |
| Business segment operating profit | $2,162 | up 279% from a year ago | non-GAAP |
| Total backlog | $230 billion |  |  |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Aeronautics sales | $8,112 | up 9% |
| Missiles and Fire Control sales | $4,101 | up 19% |
| Rotary and Mission Systems sales | $4,354 | up 9% |
| Space sales | $3,496 | up 6% |
| Aeronautics operating margin | 9.4% | compared to (1.3%) a year ago |
| Missiles and Fire Control operating margin | 14.5% | compared to 14.0% a year ago |
| F-35 deliveries in the quarter | 19 | compared to 50 a year ago |
| Missiles and Fire Control backlog | $87,882 | compared to $46,650 at Dec. 31, 2025 |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Sales | 2026 | ~$79,750 - $81,750 |
| Business segment operating profit | 2026 | ~$8,500 - $8,700 |
| Diluted earnings per share | 2026 | ~$29.95 - $30.65 |
| Cash from operations | 2026 | ~$9,200 - $9,400 |
| Capital expenditures | 2026 | ~$2,000 - $2,400 |
| Free cash flow | 2026 | ~$7,000 - $7,200 |

## Key takeaways

1. **Every segment grew sales in the quarter** Sales rose 11% to $20.1 billion, driven by Missiles and Fire Control up 19%, Aeronautics up 9%, Rotary and Mission Systems up 9% and Space up 6%.
2. **Prior-year program losses explain the profit rebound** Net earnings rose to $1.8 billion from $342 million, a year that included $1.6 billion of program losses. Business segment operating profit rose 279%.
3. **THAAD contract lifts backlog to a record** Backlog reached $230 billion, with Missiles and Fire Control backlog at $87,882 million versus $46,650 million at Dec. 31, 2025, including a $35 billion multi-year THAAD contract.
4. **Full-year guidance was raised across key measures** Free cash flow is now projected at about $7,000 - $7,200 million, up from $6,500 - $6,800 million in April. Diluted EPS is now about $29.95 - $30.65.
5. **F-35 deliveries dropped sharply year over year** F-35 deliveries were 19 in the quarter versus 50 a year ago, though F-35 production sales were higher by $475 million.

## Questions

**What were Lockheed Martin's Q2 2026 results?** Sales rose 11% to $20.1 billion and net earnings were $1.8 billion, or $7.94 per share, versus $342 million, or $1.46 per share, a year earlier. Cash from operations was $3.2 billion and free cash flow was $2.9 billion.
**Did Lockheed Martin raise its 2026 guidance?** Yes. Sales guidance is now about $79,750 - $81,750 million (from $77,500 - $80,000 million), diluted EPS about $29.95 - $30.65, and free cash flow about $7,000 - $7,200 million.
**Why did earnings jump so much from a year ago?** The prior-year quarter included $1.6 billion of reach-forward losses on a classified Aeronautics program, the Canadian Maritime Helicopter Program and the Turkish Utility Helicopter Program. Munition ramps at Missiles and Fire Control also added profit.
**What is Lockheed Martin's backlog?** Total backlog was $230,416 million at June 28, 2026, up from $193,622 million at Dec. 31, 2025. Missiles and Fire Control backlog nearly doubled to $87,882 million.
**What are the main risks?** F-35 deliveries were 19 versus 50 a year ago, and Rotary and Mission Systems saw unfavorable profit adjustments on Heavy Lift and Seahawk. Guidance also excludes the proposed Ultra Maritime acquisition until it is consummated.