Lockheed Martin (LMT) investor relations material

Executive summary

• Achieved record Q2 2026 backlog of $230–$230.4 billion, up $36.8–$65 billion year-to-date, driven by major contract wins including a $35 billion THAAD contract and robust order intake across all segments.

• Q2 sales rose 10–11% year-over-year to $20.1 billion, with net earnings of $1.8 billion and EPS of $7.94, reflecting strong operational execution and recovery from prior-year losses.

• Free cash flow reached $2.9 billion, reversing a prior year dip, and cash from operations was $3.2 billion.

• Raised 2026 guidance across all key metrics, citing accelerating demand, robust order book, and broad-based growth across all business segments.

• Strategic investments in manufacturing, automation, AI-enabled systems, and partnerships are enabling rapid scaling and innovation.

Financial highlights

• Q2 2026 sales: $20.1 billion (+10–11% YoY); segment operating profit: $2.2–$2.5 billion; segment operating margin: 10.8%.

• Net earnings: $1.8 billion for Q2 2026; EPS: $7.94.

• Free cash flow improved to $2.9 billion from negative $150 million year-over-year, driven by favorable customer receipts and lower tax payments.

• Book-to-bill ratio at 3.2:1, reflecting strong order intake.

• Dividend payout: $796 million in Q2; $1.6 billion in six months.

Outlook and guidance

• 2026 sales guidance raised to $79.75–$81.75 billion, with segment operating profit targeted at $8.5–$8.7 billion.

• Free cash flow outlook increased to $7–$7.2 billion; EPS projected at $29.95–$30.65.

• Capital expenditure guidance updated to $2–$2.4 billion, with continued focus on efficient munitions capacity expansion.

• Sales and profit outlooks increased for all segments except Space, which saw a slight decrease in profit guidance.

• Approximately 30% of backlog expected to convert to revenue in the next 12 months.