🌐 What the Company Does
Lockheed Martin (LMT) is the world’s largest aerospace and defense contractor, headquartered in Bethesda, Maryland.
Its core mission is to design, build, and support advanced defense, space, and security systems.
Major business segments include:
- Aeronautics ✈️ – F-35 fighter jets and C-130 airlifters.
- Missiles & Fire Control 🚀 – Precision missile and air defense systems.
- Rotary & Mission Systems 🛰️ – Naval, helicopter, and cybersecurity programs.
- Space 🌌 – Satellites and NASA’s Orion spacecraft.
Plain English 💬
Lockheed Martin builds the jets, missiles, and spacecraft that power U.S. and allied defense systems worldwide.
📊 Financial Highlights
For Q3 FY 2025, revenue grew about 9 % year-over-year to $18.6 billion, supported by steady demand for F-35 jets, missile-defense systems, and space programs.
Operating margin stayed firm around 11 %, while net income remained roughly flat compared with last year.
Operating cash flow totaled about $5.3 billion in the first nine months, comfortably funding both dividends and share buybacks.
Plain English 💬
Lockheed delivered stable sales and margins, proving its ability to execute efficiently even amid supply-chain and labor-cost pressures.
⚠️ Key Risks
Lockheed’s main risks come from:
- Program execution on large defense contracts (cost or schedule delays).
- Supply-chain and labor shortages in specialized aerospace components.
- Strict U.S. government regulations and export control compliance.
- Cybersecurity threats to classified defense data.
- Dependence on government budgets for funding and approvals.
Plain English 💬
The company’s success depends on meeting defense deadlines and maintaining strong ties with the U.S. government.
🧭 MD&A Highlights
Management reported broad-based demand across all segments and reaffirmed FY2025 guidance.
Strong cash generation supported shareholder returns and investment in next-generation defense and space technologies.
Backlog exceeded $150 billion, providing visibility for future growth.
Plain English 💬
Lockheed’s long-term contracts give it stability — even in uncertain times, its future work is already lined up.
✅ Takeaway
Lockheed Martin (LMT) delivered another steady quarter with double-digit sales growth, stable margins, and robust cash flow.
The company remains a cash-generating defense leader positioned for long-term stability through its massive backlog and core programs like the F-35 and missile defense systems.
📈 Key Profitability Ratios (%)
| Ratio | Q3 FY 2025 | Q3 FY 2024 | 9M FY 2025 | 9M FY 2024 |
|---|---|---|---|---|
| Gross Margin | 12.0 | 12.4 | 9.7 | 11.9 |
| Operating Margin | 12.2 | 12.5 | 9.9 | 12.0 |
| Net Margin | 8.7 | 9.5 | 6.7 | 9.2 |
Plain English 💬
Margins narrowed slightly in 2025 as program mix and higher input costs weighed on profitability.
Operating margin remained near 12%, showing solid execution and disciplined cost management despite inflation and supply-chain pressures.
Net margin dipped mainly due to higher interest expense and reduced pension income, but overall efficiency stayed consistent with long-term defense industry averages.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Lockheed Martin (LMT) Q3 2025 10-Q Analysis (Filed 2025) | Explained for Beginners