Global demand for advanced defense systems is fueling unprecedented growth at Lockheed Martin. The aerospace and defense giant is not only reporting a record-high order backlog but has also concurrently secured a major agreement with the U.S. government to dramatically scale production of a key missile system. This broad-based strength across nearly all business segments highlights the company’s operational resilience in the current geopolitical climate.
Strategic Missile Defense Expansion
A significant catalyst for future performance is a focused strategic push in missile defense. Lockheed Martin has entered into a separate pact with the U.S. government, committing to a substantial increase in manufacturing capacity for the Terminal High Altitude Area Defense (THAAD) system. The objective is to quadruple annual output of the interceptor missiles from the current rate of 96 to 400 units.
To manage this ambitious scaling, the corporation is planning to construct a new facility dedicated to munitions acceleration in Camden, Arkansas. This move follows a similar early-January agreement to boost production of PAC-3 missiles, underscoring a clear priority on ensuring the rapid availability of critical defense assets for national security customers.
Unprecedented Demand Drives Record Metrics
The primary indicator for future revenue streams hit a new peak at the close of the 2025 fiscal year. The company’s backlog of orders climbed to a historic $194 billion. Management attributes this milestone to what it describes as “unprecedented demand” for the corporation’s capabilities and technologies.
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This robust demand has already translated into full-year financial results. Revenue increased by 6% to $75.0 billion, with gains reported across all major divisions—from aeronautics to space. The F-35 program remains a cornerstone, contributing 27% to total revenue last year. The operational strength is further reflected in the equity’s performance: shares have advanced over 41% in the past twelve months and are currently trading just shy of their 52-week high.
Key Financial and Operational Data:
- FY 2025 Revenue: $75.0 billion (a 6% year-over-year increase)
- Order Backlog: $194 billion (record level)
- Earnings Per Share (EPS): $21.49
- Production Target: THAAD interceptor production slated to rise from 96 to 400 units annually
Bolstered by this substantial order book, company leadership is optimistic about the road ahead. For the 2026 fiscal year, further revenue growth of approximately 5% is projected. Meanwhile, earnings per share are anticipated to land in a range between $29.35 and $30.25. The immediate focus is now on the swift execution of capacity expansions to meet the urgent requirements of government clients in a timely manner.
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