For 2025, Lockheed Martin projected revenue growth of 4 to 5 per cent with a backlog of $167 billion by mid-year. Free cash flow was forecast at $6.7 billion for 2025, increasing to $7 billion in 2026, excluding pension contributions, and $6 billion was planned to be returned to shareholders equally split between dividends and share repurchases.
The company anticipated a stable F-35 production rate of 156 aircraft per year, underpinned by strong international demand. The programme backlog stood at 311 aircraft at the end of the second quarter, with an additional 150 expected from the Lot 19 award, reinforcing its position in fighter jet competitions worldwide.
Lockheed Martin stated its intention to integrate sixth-generation technologies into the F-35, potentially delivering 80 per cent of next-generation capability at 50 per cent of the cost. The company also continued to advance directed energy programmes, including a laser weapon already deployed in the Red Sea, while strengthening infrastructure and manufacturing foundations to close the munitions gap.
Financial updates included an estimated $250 million impact from tariffs this year, with potential recovery over time. Lockheed Martin also expected a $400 to $600 million cash lift from the “One Big Beautiful Bill Act” tax law, which supported cash flow resilience.
The company reaffirmed that no additional charges were expected on classified aeronautics and Missiles and Fire Control programmes. It also stressed efforts to improve efficiency and quality across production lines and to build a global industrial network to enhance resilience and drive international growth.
Lockheed Martin’s international business was expected to grow at least as fast as its U.S. operations, reflecting rising demand for advanced platforms and munitions. Future opportunities highlighted included naval deployment of PAC-3 missiles, air-launched hypersonic systems, and expanding sustainment for international F-35 operators.
The company emphasised digital transformation and partnerships with emerging technology firms as key elements of its strategy. It also pointed to Lockheed Martin Evolve, its initiative for private equity and joint ventures, as a means of expanding innovation and financing options.
In the Q&A session, the company noted that the administration’s emphasis on speed and openness to change within the Department of Defense was a positive development. It said officials were actively considering aircraft modernisation and sixth-generation integration into current fleets.
Lockheed Martin explained that the F-35 programme was designed with three revenue sources — production, sustainment, and ongoing development — providing long-term growth. It also highlighted its role in the Golden Dome programme, reflecting leadership in space capabilities, command and control systems, and ground radar technologies.
