Lockheed Martin's Q2 2025 earnings report revealed sales of $18.2 billion, a minor increase from the previous year, but significant pre-tax losses of $1.6 billion resulted in a sharp decline in earnings per share. Net earnings plummeted to $342 million from $1.6 billion. Cash from operations also fell dramatically to $201 million, with free cash flow turning negative at $(150) million. Despite these setbacks, the company reaffirmed its sales and free cash flow guidance for 2025 and plans to continue investments in infrastructure and innovation while returning $1.3 billion to shareholders.
Lockheed Martin reported Q2 2025 sales of $18.2 billion, a slight increase from $18.1 billion in Q2 2024. The company faced significant challenges, recording pre-tax losses of $1.6 billion on various programs.
Net earnings were $342 million, or $1.46 per share, down from $1.6 billion, or $6.85 per share, in the previous year. Cash from operations decreased to $201 million from $1.9 billion, while free cash flow was negative at $(150) million.
CEO Jim Taiclet highlighted strong performance in combat operations and increased demand for key programs, despite the financial setbacks. Lockheed Martin is investing in infrastructure and innovation, maintaining its focus on operational performance and capital allocation strategy.
The company returned $1.3 billion to shareholders through dividends and share repurchases. Wall Street is disappointed mainly due to the significant losses incurred last quarter.
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