Record Backlog and Earnings Surge Power Lockheed Martin's Raised Outlook
LMT sits 35% above its 52-week low of $410.11.
Summary
Lockheed Martin posted Q2 2026 earnings of $7.94 per share, a sharp rise from $1.46 a year ago, on sales of $20.1 billion. Citing a record $230 billion backlog and strong operational execution, the company raised its full-year outlook.
Key Events · Earnings and Guidance · LMT
-
Q2 Earnings Surge
Net earnings reached $1.8 billion ($7.94 per share), compared with $342 million ($1.46 per share) in Q2 2025, as prior-year program charges were absent and sales grew across the board.
-
Record Backlog of $230 Billion
The backlog climbed to $230 billion, including a $35 billion multi-year THAAD contract, securing long-term revenue visibility.
-
Raised 2026 Guidance
Full-year sales are now expected at ~$79.75-$81.75 billion, with segment operating profit of ~$8.5-$8.7 billion, diluted EPS of ~$29.95-$30.65, and free cash flow of ~$7.0-$7.2 billion.
-
Free Cash Flow Rebound
Free cash flow swung to $2.9 billion in Q2 from negative $150 million a year ago, reflecting improved working capital and lower tax payments.
Analysis · LMT · Manufacturing
A standout second quarter saw sales climb 11% to $20.1 billion, while net earnings swung dramatically to $1.8 billion from a year-ago loss. The reversal reflects the absence of last year's $1.6 billion in program charges and robust demand across all segments, with missiles and fire control leading the charge. Free cash flow rebounded to $2.9 billion, prompting the company to lift its full-year guidance and now project over $7 billion in free cash flow. Anchored by a $35 billion THAAD contract, the record $230 billion backlog offers multi-year visibility. This report confirms that the defense upcycle is translating directly into financial results, marked by accelerating growth and improving profitability.
At the time of this filing, LMT was trading at $552.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $118.6B. The 52-week trading range was $410.11 to $692.00. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.