Lockheed Martin posts $18 billion Q1 sales, expands Patriot, THAAD and PrSM missile production under new agreements

Cash from operations totaled $220 million, down from $1.4 billion a year earlier. Free cash flow was negative $291 million, compared with positive $955 million in the same period of 2025.

The company said its performance reflects continued demand for advanced defense systems and space capabilities. It also highlighted operational milestones achieved during the quarter.

Chairman, President and Chief Executive Officer Jim Taiclet said: “Lockheed Martin’s superior capabilities in delivering advanced defense technology and systems and in space exploration have been proven again and again in 2026.” He added: “Our Orion spacecraft safely carried the crew farther from Earth than ever before during NASA’s historic Artemis II mission, concluding with a precisely executed re-entry and splashdown.”

He said the company’s combat aircraft continue to operate effectively. “Our superior fifth generation fighter jets, the F-35 and F-22, continue to operate with great effectiveness in contested and difficult missions,” he said.

Taiclet also highlighted the company’s missile defense systems. “Additionally, our layered missile defense architecture, including phased array radars, Aegis integrated command and control system, and the THAAD and advanced Patriot Missile interceptors, protected both military assets and civilians,” he said.

The company said it has entered into new framework agreements with the U.S. government to expand munitions production. These agreements are intended to accelerate and scale output of key systems.

Taiclet said: “Given the high level of demand for many of these systems, we also pioneered a number of commercially inspired, long-term business arrangements with U.S. government leadership.” He added: “In the first quarter, we signed several framework agreements to accelerate and scale munitions production, including advanced Patriot Missile, THAAD, and PrSM.”

He said the agreements are expected to benefit both industry and government. “We anticipate that these groundbreaking agreements will benefit both industry and the government and serve as the example for future contracting initiatives,” he said.

Taiclet added that the arrangements will support production growth. “The multi-year demand commitments defined in these framework agreements will in turn support strategic investments in production infrastructure, bolster our supply chain, and enhance our workforce to increase production rates of these critical systems by 3-4 times current rates,” he said.

The company reaffirmed its full-year 2026 financial outlook. It expects sales growth of around 5% and operating profit growth of approximately 25%.

Taiclet said: “Our first quarter revenue of more than $18 billion, segment operating profit of $1.8 billion, and substantial backlog were a result of both strong customer demand, our continued commitment to operational performance and focused risk management.” He added: “We reaffirm our 2026 full year guidance with anticipated sales and operating profit growth of approximately 5% and 25% year-over-year, respectively, and expected free cash flow between $6.5 and $6.8 billion.”