Lockheed Martin Does Not Alter Annual Outlook To Price Tariff Impact Yet Amid Recent CFO Change

Lockheed Martin Corp LMT shares are trading higher premarket after the company reported first-quarter 2025 results.

The company reported a  4% year-over-year increase in net sales to $18.0 billion, beating the consensus of $17.8 billion. It clocked a GAAP EPS of $7.28, beating the consensus of $6.32.

Gross profit rose to $2.32 billion from $1.99 million a year ago quarter. Operating profit increased 17% Y/Y to $2.37 billion, with a margin of 13.2% (vs. 11.8% in earlier year quarter).

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Aeronautics sales were $7.06 billion (+3% Y/Y), and the operating margin was 10.2%, up from 9.9% a year ago quarter.

Missiles and Fire Control sales of $3.37 billion (+13% Y/Y); operating margin was 13.8%, up from 10.4% in the prior quarter.

Rotary and Mission Systems sales of $4.33 billion (+6% Y/Y); operating margin 12.0%, up from 10.5% in the year-ago quarter.

Space net sales of $3.21 billion (-2% Y/Y); operating margin of 11.8%, up from 9.9% in 2024.

Lockheed Martin generated an operating cash flow of $1.4 billion and a free cash flow of $955 million for the first quarter of FY25.

At the end of the quarter, LMT's total backlog was $172.97 billion.

In the first quarter, LMT returned $1.5 billion of cash to shareholders through dividends and share repurchases.

In the quarter, the company paid cash dividends of $796 million and repurchased 1.7 million shares worth $750 million.

2025 Outlook Maintained: Lockheed Martin expects net sales of $73.75 billion-$74.75 billion versus the consensus of $74.28 billion. LMT reiterated EPS guidance of ~$27.00-$27.30 versus the consensus of $27.21.

The company continues to project Business segment operating profit of $8.10 billion—$8.20 billion, cash from operations of $8.50 billion—$8.70 billion, and free cash flow of $6.6 billion—$6.8 billion.

Lockheed Martin says ‘2025 outlook does not include the evolving impacts of tariffs or related recoveries, the recent Next Generation Air Dominance announcement, or Executive Orders issued by the Administration.'

Chairman, President and CEO Jim Taiclet added,  "We remain committed to realizing our vision of digital and interoperable systems and are aligning our mission roadmaps to best support our customers' rapidly evolving security needs, both domestic and global."

"This focus, along with Lockheed Martin's track record of innovation and performance, continues to result in new awards, including the recent missiles contracts for Precision Strike Missiles, THAAD and JASSM/LRASM, as well as the Trident II D5 Life Extension, comprising up to $10 billion of future work."

Last week, the company announced that it had named Evan Scott its CFO, effective immediately, succeeding Jesus "Jay" Malave, who advised the company that he was pursuing other opportunities.

Price Action: At the last check on Tuesday, LMT shares were trading higher by 2.76% to $471 premarket.

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