Lockheed Martin : 1Q26 Earnings Conference Call Webcharts Final
LMT
Published on 04/23/2026 at 07:26 am EDT
April 23, 2026
James D. Taiclet
Chairman, President and CEO
Evan T. Scott
Chief Financial Officer
Mark D. Kvasnak
Vice President, Investor Relations
PHOTO: NASA
Increasing s Accelerating Production
PAC-3: Triple / THAAD: Quadruple / PrSM: Quadruple
Enabling Long-Term Planning s Investment
$8-GB through 2030 incl. $2-3B of CapEx / Bolster Supply Chain / Improve Efficiency
Expanding Capacity s Developing Workforce
20+ New and/or Modernized Facilities in 5+ States / Develop Next Generation of Talent
Creating Long Term Value
Mid-Teens Five-Year Sales CAGR for MFC / Accretive Margins
Grounded by Key Tenets
Cash Neutral Investment Phases / Provisions for Inflation and Changes in Demand
THAAD
PrSM
PAC-3 MSE
$18.0B
Sales
$1.8B
Segment Operating Profit*
10.1%
Segment Operating Margin*
$6.44
Earnings Per Share
($2G1M)
Free Cash Flow*
$511M
Capital Expenditures
$458M
Research C Development
GPS III Launch
First Quarter ($M)
Sales
$7,057
$6,G53
2025
2026
Operating Profit*
$720
$61G
2025
2026
Sales: Decreased 1%
Lower volume on classified and F-16 programs, partially offset by increased volume on F-35 sustainment
Operating Profit: Decreased 14%
Net unfavorable profit adjustments this year and the absence of favorable profit adjustments on classified programs last year
F-35 Refuels from KC-130
First Quarter ($M)
Sales
$3,373
$3,64G
2025
2026
Operating Profit*
$465
$500
2025
2026
Sales: Increased 8%
Production ramp-up on PAC-3 and Tactical and Strike Missile programs
Operating Profit: Increased 8%
Higher sales volume
HIMARS equipped with PrSM
First Quarter ($M)
Sales
$4,328
$3,GG1
2025
2026
Operating Profit*
$521
$423
2025
2026
Sales: Decreased 8%
Lower volume on radar and Sikorsky programs
Operating Profit: Decreased 1G% IP license cost recoveries in 2025 that did not recur, and unfavorable profit adjustments at Sikorsky
Delivery of First MATRIX -enabled Autonomous BLACK HAWK®
First Quarter ($M)
Sales
$3,205
$3,428
2025
2026
Operating Profit*
$37G
$281
2025
2026
Sales: Increased 7%
Higher volume on Fleet Ballistic Missile and
Next Generation Interceptor programs
Operating Profit: Decreased 26% Absence of favorable program completion events on commercial civil space programs in 2025, partially offset by higher sales volume
Artemis II Launch
($M), Except for EPS
2026
Outlook
Sales
$77,500 - $80,000
YoY Growth
+5%
Segment Operating Profit*
8,425 - 8,675
Total FAS/CAS Pension Adjustment
~1,365
Diluted EPS
29.35 - 30.25
Cash from Operations
9,150 - 9,450
Capital Expenditures
2,500 - 2,800
Free Cash Flow*
6,500 - 6,800
*See Chart 11 for Definitions of Non-GAAP Measures and Other Performance Metrics
Definitions of Non-GAAP Measures
Non-GAAP Financial Measures Disclosure
This presentation, and today's conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of Lockheed Martin, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. In addition, the company's definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.
Free Cash Flow (non-GAAP)
Free cash flow is a non-GAAP financial measure that we define as cash from operations less capital expenditures. Our capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). We use free cash flow to evaluate our business performance and overall liquidity. While management believes that free cash flow as a non-GAAP financial measure may be useful in evaluating our financial performance, it should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies
$M
1Q26 Results
2026 Outlook
Cash from Operations (GAAP)
220
9,150 - 9,450
Capital Expenditures
(511)
(2,500) - (2,800)
Free Cash Flow (non-GAAP)
(291)
6,500 - 6,800
Segment Operating Profit and Margin (non-GAAP)
Segment Operating Profit represents operating profit from the company's business segments before unallocated income and expense. This measure is used by the company's senior management in evaluating the performance of the company's business segments and is a performance goal in the company's annual incentive plan. The table below reconciles Business Segment Operating Profit to Consolidated Operating Profit. Business Segment Operating Margin is calculated by dividing Segment Operating Profit by Sales. For 2023 forward, intangible asset amortization expense will be reclassified from segment operating profit into unallocated items.
$M
1Q 2026
Sales Profit Margin
1Q 2025
Sales Profit Margin
Sales
2026 Outlook
Profit
Margin
Business segment operating profit (non-GAAP)
18,021 1,823 10.1%
17,963 2,085 11.6%
~$77,500 - $80,000
~$8,425 - $8,675
~10.9%
FAS/CAS operating adjustment
421
379
~1,685
Intangible asset amortization expense Severance and other charges
Other, net
(50)
-
(131)
(64)
-
(28)
~(200)
-
~(475)
Total Unallocated Items
240
287
1,010
Consolidated operating profit (GAAP)
18,021 2,063 11.4%
17,963 2,372 13.2%
~$77,500 - $80,000
~$9,435 - $9,685
~12.1%
Book-to-Bill Ratio
The ratio of orders received to sales recorded for a specified period
11
Appendix I - Guidance Detail
2026 Outlook
($M), Except for EPS
Sales
$77,500 - $80,000
Segment Operating Profit*
$8,425 - $8,675
Segment Margin*
10.9%
FAS/CAS Operating Adjustment**
~$1,685
Other, net
~($675)
Consolidated Operating Profit
$9,435 - 9,685
Net-Operating FAS Pension Income**
~($320)
Interest Expense
~($1,105)
Effective Tax Rate
~16.5%
Diluted EPS
$26.35 - 30.25
Pension Contribution
$0
*See Chart 11 for Definitions of Non-GAAP Measures
Appendix II - Business Area Guidance
($M)
Sales
Segment
Operating Profit*
AERO
$30,500 - 31,500
$2,675 - 3,075
MFC
$16,100 - 16,600
$2,235 - 2,315
RMS
$17,400 - 17,800
$1,830 - 1,870
SPACE
$13,500 - 13,800
$1,385 - 1,415
LM Total
$77,500 - 80,000
$8,425 - 8,675
Appendix III - Pension
Total FAS (expense) and CAS costs
2025
Actual
2026
Outlook
FAS pension (expense)
$ (924)
$ (370)
Less: CAS pension cost
$ 1,568
$ 1,735
Total FAS/CAS pension adjustment
$ 644
$ 1,365
Service and non-service cost reconciliation
FAS pension service cost
$ (50)
$ (50)
Less: CAS pension cost
$ 1,568
$ 1,735
FAS/CAS operating adjustment
$ 1,518
$ 1,685
Non-operating FAS pension (expense)
$ (874)
$ (320)
Total FAS/CAS pension adjustment
$ 644
$ 1,365
Appendix IV
Acronyms
GAAP - Generally Accepted Accounting Principles PrSM - Precision Strike Missiles
EPS - Earnings per Share ULA - United Launch Alliance
FAS - Financial Accounting Standards SRM - Solid Rocket Motor
CAS - Cost Accounting Standards GPS - Global Positioning Satellite
MFC - Missile and Fire Control C2BMC - Command and Control, Battle Management, and Communication
RMS - Rotary and Mission Systems UAS - Unmanned Aerial Systems TSM - Tactical s Strike Missiles ERP - Enterprise Resource Planning IAMD - Integrated Air s Missile Defense FBM - Fleet Ballistic Missile
HIMARS - High Mobility Artillery Rocket System NGI - Next Generation Interceptor JASSM - Joint Air-to-Surface Standoff Missile
LRASM - Long Range Anti-Ship Missile
PAC-3 - Patriot Advanced Capability 3 THAAD - Terminal High Altitude Area Defense
Disclaimer
Lockheed Martin Corporation published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 11:25 UTC.