Lockheed Martin (NYSE:LMT) saw its shares rise 3% in premarket trading on Tuesday after reporting third-quarter earnings that topped Wall Street expectations and announcing an upgrade to its full-year profit guidance, reflecting strong global demand for its defense products.
The defense contractor posted Q3 earnings per share of $6.95, well above the analyst estimate of $6.39. Revenue increased 8.8% year-over-year to $18.6 billion, slightly surpassing the consensus forecast of $18.53 billion. The strong performance was underpinned by higher output across multiple segments, particularly its F-35 Lightning II fighter jets and missile defense systems.
“Based on the effectiveness and reliability of our products and systems, strong demand from Lockheed Martin’s customers—both in the United States and among our allies—continues,” said Lockheed Martin Chairman, President, and CEO Jim Taiclet. “As a result of this unprecedented demand, we are increasing production capacity significantly across a wide range of our lines of business.”
The company’s backlog hit a record $179 billion, equivalent to more than two and a half years of sales. Lockheed Martin has delivered 143 F-35 jets through the end of Q3, marking a new milestone.
The Aeronautics segment, Lockheed’s largest division, posted a 12% increase in sales to $7.26 billion, driven by higher production and sustainment contracts for the F-35 program. Missiles and Fire Control revenue rose 14% to $3.62 billion, supported by strong momentum in tactical and strike missile programs.
In light of its strong quarterly performance, Lockheed raised its full-year earnings guidance to a range of $22.15–$22.35 per share, up from $21.70–$22.00 previously, and above the analyst consensus of $21.85. It also lifted the lower end of its revenue outlook to $74.25–$74.75 billion, compared to the prior $73.75–$74.75 billion range.
The board approved a 5% increase in the quarterly dividend to $3.45 per share and authorized an additional $2 billion in share repurchases, bringing the total buyback authorization to $9.1 billion.