This article is based on an official press release from Lockheed Martin and additional financial data released January 29, 2026.

Lockheed Martin Reports Record $194 Billion Backlog Amid Strong Q4 2025 Results

Lockheed Martin (NYSE: LMT) released its Fourth Quarter and Full Year 2025 financial results today, reporting figures that surpassed Wall Street expectations on both revenue and earnings. The defense giant announced a record-breaking backlog of $194 billion, a surge attributed to unprecedented global demand and the verified performance of its platforms in recent geopolitical conflicts.

For the quarter ended December 31, 2025, the company reported net sales of $20.3 billion, a 9% increase over the same period in 2024. Net earnings for the quarter reached $1.3 billion, or $5.80 per share, significantly outpacing the consensus estimate of approximately $5.75. The company also issued strong guidance for 2026, projecting net sales between $77.5 billion and $80.0 billion.

Financial Performance Highlights

The company’s financial health showed robust improvement across key metrics, driven by broad-based growth in all four business segments. According to the official release, cash from operations in the fourth quarter tripled year-over-year to $3.2 billion.

Fourth Quarter 2025 vs. Q4 2024

• Net Sales: $20.3 billion (up from $18.6 billion).
• Net Earnings: $1.3 billion (up from $527 million).
• Earnings Per Share (EPS): $5.80 (up from $2.22).
• Free Cash Flow: $2.8 billion.

For the full year of 2025, Lockheed Martin achieved total net sales of $75.0 billion, a 6% increase year-over-year, with free cash flow settling at $6.9 billion. The Aeronautics segment, the company’s largest division, saw sales grow by 6%, delivering 191 F-35 jets in 2025 compared to 110 in the previous year.

Operational Drivers and Geopolitical Context

Management attributed the record backlog and sales growth to the “combat-proven performance” of its systems. Specifically, the company highlighted the role of its platforms in “Operation Absolute Resolve,” a U.S. military operation in Venezuela that took place earlier this month.

In a statement regarding the company’s operational impact, Lockheed Martin Chairman, President, and CEO Jim Taiclet noted the direct correlation between field performance and demand:

“2025 marked a year of unprecedented demand for Lockheed Martin capabilities… driven by combat-proven performance… demonstrated in 2026. During the U.S. military aircraft‘s recent Operation Absolute Resolve, F-35 and F-22 fighter jets… were decisive contributors.”

, Jim Taiclet, Chairman, President & CEO, Lockheed Martin

The Missiles and Fire Control segment emerged as the fastest-growing division, posting an 18% increase. This surge was driven by high demand for PAC-3 MSE interceptors and HIMARS systems, reflecting ongoing security needs in Eastern Europe and the Middle East.

Regulatory Headwinds and 2026 Outlook

While the financial results were positive, the company acknowledged the shifting regulatory landscape following the January 7, 2026, Executive Order titled “Prioritizing the Warfighter in Defense Contracting.” This order, signed by President Trump, introduces potential restrictions on dividends and stock buybacks for contractors deemed “underperforming” due to delays or cost overruns.

Despite this new layer of regulatory scrutiny, Lockheed Martin signaled confidence in its execution stability. The Board authorized an additional $2 billion for share repurchases, bringing the total authorization to approximately $9.1 billion, and raised the quarterly dividend by 5% to $3.45 per share.

Looking ahead, the company’s 2026 guidance anticipates continued growth:

• 2026 Net Sales: $77.5 billion – $80.0 billion.
• 2026 Diluted EPS: $29.35 – $30.25.
• 2026 Free Cash Flow: $6.5 billion – $6.8 billion.

AirPro News Analysis

Lockheed Martin’s latest report presents a dichotomy familiar to the current defense sector: record-breaking demand versus tightening government oversight. The $194 billion backlog provides a massive revenue safety net, yet the new Executive Order linking capital returns to operational performance introduces a “zero-defect” pressure on the factory floor.

While competitors like Northrop Grumman and RTX Corp face their own program-specific hurdles, Lockheed’s ability to meet F-35 delivery targets in 2025 places it in a favorable position relative to the new administration’s standards. However, with dividend payouts now theoretically revocable under the new EO if performance slips, we expect investors to scrutinize production schedules as closely as balance sheets in the coming quarters.

Sources

Sources: Lockheed Martin Official Press Release