Lockheed Martin significantly exceeded market expectations in the first quarter of fiscal year 2025, reporting a substantial increase in profits. The net profit amounted to $1.71 billion, translating to earnings of $7.28 per share. This result was nearly a dollar per share above analyst expectations of around $6.30 to $6.35.
Revenue Increase Driven by Military Technology
Total revenue increased by approximately 4 to 4.5 percent year-over-year to about $18 billion. The aerospace segment was particularly strong, with a revenue increase of about 3.1 percent. Sustained high demand for military technology—especially due to geopolitical tensions such as conflicts in Ukraine and the Middle East—significantly boosted the sales of modern weapon systems like the F-35 fighter jet and Patriot missiles.
Cautious Forecast Despite Successes
Despite the strong results, management remained cautious: the annual earnings forecast per share was left unchanged at around $27 to $27.30. Revenue is also expected to remain between approximately $73.75 billion and just under $75 billion. A decline in free cash flow to about $1 billion (down from roughly $1.26 billion) was mainly attributed to higher investments; nevertheless, Lockheed Martin remains optimistic regarding an annual cash flow of about $6.6 to $6.8 billion.
For investors, this profit jump is a positive signal: the strong operational performance despite global uncertainties could support or boost the stock price. However, management urges caution given the global situation and is currently refraining from raising annual targets. Overall, Lockheed Martin is showing itself as one of the major beneficiaries of the current arms boom with stable market shares and long-term secured prospects through new large contracts.