Lockheed Martin has disclosed a significant decrease in net earnings for the second quarter of fiscal 2025 (Q2 FY25), reporting $342m compared to the $1.64bn recorded in the corresponding period of the previous year.
The decline has been primarily attributed to programme losses totalling $1.6bn and other charges related to asset impairments and a tax matter amounting to $169m.
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The company faced a $950m charge related to a classified programme within its Aeronautics division and challenges faced by international helicopter programmes at its subsidiary Sikorsky.
Furthermore, Lockheed Martin absorbed a $570m charge connected to its obligations with the Canadian Government concerning the Canadian Maritime Helicopter Program, and an additional pretax reach-forward loss of $95m recognised on the Turkish Utility Helicopter Program (TUHP).
Despite these setbacks, Lockheed Martin reported a marginal increase in sales for the second quarter of 2025, with sales reaching $18.15bn, up from $18.12bn in the same quarter of the previous year.
However, earnings per share experienced a sharp decline, falling to $1.46 from the prior year’s $6.85.
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By GlobalDataDuring this quarter, Lockheed Martin allocated $800m towards infrastructure enhancements and innovation initiatives aimed at fostering growth while also returning $1.3bn to its shareholders through dividends and share repurchases.
Lockheed Martin chairman, president and CEO Jim Taiclet said: “Over the course of the past few months, Lockheed Martin systems and platforms once again proved highly effective in combat operations and in deterring further aggression.
“We remain committed to delivering these critical capabilities that our customers are counting on and are fully focused on the growth inflection we expect as the result of heightened interest and demand for Lockheed Martin’s products and technologies.”
Looking ahead to the full fiscal year 2025, Lockheed Martin has maintained its sales of between $73.75bn and $74.75bn.
The company has revised its expectations for diluted earnings per share downward to a range of $21.70 – $22.00 from a previously projected range of $27.00 – $27.30.
The anticipated business segment operating profit is projected to be between $6.60bn and $6.70bn.
Taiclet added: “We are maintaining full year 2025 guidance for sales, cash from operations, capital expense, free cash flow, and share repurchases. The programme charges taken in the quarter – which resulted from our ongoing rigorous monitoring and review processes – are a necessary step as we continue to take action to improve program execution.”
