Lockheed Martin Corporation reported second quarter 2026 sales of $20.1 billion, an 11 percent increase from $18.2 billion in the second quarter of 2025. Net earnings rose to $1.8 billion, or $7.94 per diluted share, compared to $342 million, or $1.46 per share, in the prior-year quarter, which had included $1.6 billion of program losses and $169 million of other charges. Cash from operations reached $3.2 billion, up from $201 million a year earlier, while free cash flow totaled $2.9 billion, compared to negative $150 million in the second quarter of 2025.
The company said sales growth was driven by increases across all four business segments, reflecting higher volume and munitions production ramps. Missiles and Fire Control sales rose 19 percent to $4.1 billion, driven by higher sales on integrated air and missile defense programs including PAC-3 and THAAD, along with tactical and strike missile programs including the Precision Strike Missile. Aeronautics sales increased 9 percent to $8.1 billion, primarily due to higher volume on F-35 production contracts, while Rotary and Mission Systems sales rose 9 percent to $4.4 billion and Space sales increased 6 percent to $3.5 billion. Total backlog reached a record $230.4 billion, up from $193.6 billion at the end of 2025, driven in part by a $35 billion multi-year contract with the Missile Defense Agency to produce THAAD interceptors.
Lockheed Martin raised its full-year 2026 financial outlook, now projecting sales of approximately $79.75 billion to $81.75 billion, up from its prior range of $77.5 billion to $80 billion, and diluted earnings per share of approximately $29.95 to $30.65, up from $29.35 to $30.25. The company also raised its free cash flow projection to over $7 billion, up from a prior range of $6.5 billion to $6.8 billion. The company said its Sanctum counter-drone system moved from concept to successful live-fire testing in 45 days by combining a battle manager, radar, launcher, and missile into a single engagement chain, and pointed to collaborations with General Motors Defense in the United States and Rheinmetall to co-produce ATACMS in Europe as part of its strategy to strengthen global defense manufacturing capacity.
KEY QUOTE:
“We delivered strong second-quarter performance, with over $20 billion in sales, a year-over-year increase of 11%, free cash flow of $2.9 billion, and $65 billion of new orders, which takes our backlog to a record $230 billion. This continued performance reflects more than just increased customer demand, it is evidence that our 21st Century Security strategy, and its focus on integration, partnerships and operational excellence is working, resulting in increased business, and advancing the security needs of our nation and allies. We are delivering on our strategy, achieving a higher trajectory for our business and giving us confidence to raise our full year financial guidance.”
Jim Taiclet, Chairman, President and CEO, Lockheed Martin
