Lockheed Martin (LMT) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, January 29, 2026 astatine 9:17 AM CST 43 min read

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Thursday, January 29, 2026 astatine 8:30 a.m. ET

• President and Chief Executive Officer — James D. Taiclet

• Chief Financial Officer — Evan T. Scott

• Vice President, Investor Relations — Maria Ricciardone

James Taiclet: Thanks, Maria. Good morning, everyone, and convey you for joining america connected our 4th fourth and afloat twelvemonth 2025 net call. As you saw successful our property merchandise this morning, 2025 marked unprecedented request for Lockheed Martin's industry-leading defence technologies. We finished the twelvemonth with a grounds precocious backlog of $194 billion, astir 2 and a fractional times yearly sales, and delivered 6% year-over-year income growth. We besides generated escaped currency travel of $6.9 billion, which was supra our anterior expectation, and aft we prefunded our pension astatine astir $900 million. We besides made a important $3.5 cardinal concern successful superior and autarkic probe and improvement successful enactment of transformative innovation and accrued accumulation capacity.

This beardown fiscal show is simply a nonstop effect of our relentless absorption connected operational execution. Some examples of this from 2025 see delivering 191 F-35 combatant jets and 120 PAC-3 MSC interceptors, some grounds numbers. We besides pioneered over-the-air updates to the Aegis limb strategy for real-time battlefield advantages utilizing AI and successfully launched GPS III and Tranche 1 transport furniture satellites to fortify nationalist information architectures successful space. This is what you tin expect from Lockheed Martin: continued important concern to beforehand exertion improvement and nutrient proven large limb systems astatine ever greater scale. We've built connected this momentum with a almighty commencement to 2026. Lockheed Martin products erstwhile again proved captious to the US military's astir demanding missions.

The caller Operation Absolute Resolve included F-35 and F-22 combatant jets, RQ-170 Sentinel stealth drones, and Sikorsky Black Hawk helicopters, which helped guarantee ngo occurrence portion bringing the men and women of our equipped forces location safely. In addition, we worked intimately with the Department of War Leadership to scope the landmark seven-year model statement for PAC-3 MSE interceptors that we unneurotic announced earlier successful January. This groundbreaking statement was conscionable the archetypal measurement successful bringing commercialized concern practices to large-scale accumulation wrong the defence concern base. And advancement continues arsenic we conscionable announced this greeting a akin model statement for the THAAD interceptor on with further systems from our manufacture colleagues besides being discussed this week.