Lockheed Martin's 1Q25 Revenue Soars Amid Defense Demand

Lockheed Martin reported strong financial performance for the 1Q25, with increased sales, higher net income, and an update on its ongoing share buyback program. The company's quarterly earnings per share (EPS) were reported at US$7.28, surpassing Wall Street expectations of US$6.34. This marks a notable 13.9% year-over-year increase compared to US$6.39 per share in 1Q24. Revenue for the quarter reached US$17.96 billion, a 4.5% increase from the previous year.

"Despite ongoing uncertainties in the global environment, we remain confident in our outlook for 2025. Our diversified portfolio and strong order backlog, which now exceeds US$176 billion, position us well for continued growth across all sectors of our business," said James Taiclet, CEO, Lockheed Martin.

The revenue increase was driven by strong demand in Lockheed Martin’s aerospace and defense sectors. The company’s aerospace business, which manufactures the F-35 fighter jet, saw a 3.1% rise in sales, contributing significantly to the overall performance. The F-35 program, despite facing some delays in the rollout of a technology upgrade, remains a key growth driver.

Lockheed Martin’s net income also rose to US$1.71 billion, up from approximately US$1.55 billion in 1Q24. This increase was primarily attributed to higher sales across its core business units. Lockheed Martin’s strategic focus on missile systems and fighter jets has proven resilient, with the defense sector continuing to benefit from global tensions, particularly in Ukraine and the Middle East.

However, the company’s space division experienced a decline, which impacted overall performance in that unit. Despite this, the strong sales growth in aerospace and defense sectors helped bolster the company’s overall financial results.

Lockheed Martin’s strong earnings performance was accompanied by a US$750 million share buyback program, announced alongside the quarterly results. The buyback program aims to enhance shareholder value and is part of the company’s broader strategy to return capital to investors. The announcement of the buyback contributed to a 4% rise in Lockheed Martin’s stock price over the past month.

"The share repurchase program reflects our commitment to creating value for our shareholders. We are focused on sustaining strong financial performance and continuing to invest in the capabilities that drive long-term growth," said Taiclet.