[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4488 followers Created: 2025-07-23 12:53:19 UTC $LMT Lockheed Martin Corporation Earnings Call Key Highlights: (2/2) 📦 Business Segment Highlights Aeronautics: Sales up X% to $XXX billion, driven by F-35 production; excluding the $XXX million classified charge, operating profit would have grown high single digits. Missiles and Fire Control (MFC): Sales rose XX% to $XXX billion, led by HIMARS, JASSM/LRASM, and PrSM; operating profit increased X% to $XXX million, offset slightly by PAC-3 rate adjustments. Rotary and Mission Systems (RMS): Sales fell XX% to $X billion due to CMHP and TUHP charges; excluding these, RMS sales declined mid-single digits due to reduced SEAHAWK and Canadian Surface Combatant volume. Space: Sales increased 4%, with strength in Orion, Next-Gen Interceptor, and Fleet Ballistic Missile programs; operating profit rose 5%, aided by booking rate improvements and two new GPS IIIF orders. 💵 Updated 2025 and Preliminary 2026 Outlook 2025 sales guidance reaffirmed at $73.75–$74.75 billion, with expected backlog growth from F-35 Lots 18–19, JASSM/LRASM, CH-53K, PAC-3, and classified space programs. Segment operating profit revised to $6.6–$6.7 billion; EPS lowered to $21.70–$22 due to charges and tax-related adjustments. Free cash flow outlook maintained at $6.6–$6.8 billion for 2025, reflecting $XXX million headwind from Aero Classified and tariff delays, partially offset by $400–$600 million in R&D tax relief from the “One Big Beautiful Bill Act.” 2026 FCF expected to be ~$6 billion due to continued program investments and a planned $X billion pension contribution; 2027 and beyond anticipated to return to low-to-mid single-digit FCF growth. ⚙️ Contracting Discipline and Future Program Oversight Management reaffirmed its no “must-win” policy and commitment to robust contract evaluation to avoid future fixed-price program risks. New review structures, subject-matter expert oversight, and independent risk audits now govern all complex or high-risk programs. The company is engaging U.S. government customers to restructure or de-risk high-profile contracts (e.g., Aero Classified, CMHP, TUHP) while ensuring continued mission-critical delivery. Lessons learned from troubled programs are being systematically shared and applied across the portfolio to enhance risk identification and control. 🌐 Golden Dome and Homeland Defense Initiatives Lockheed Martin plays a central role in shaping the emerging Golden Dome homeland defense architecture through its proven missile defense systems (PAC-3, THAAD, Aegis) and command-and-control integration. No backlog contributions have been recognized yet, as procurement contracts are still pending; however, internal investments are ramping in anticipation. Complementary technologies like Counter-UAS are under development and will form a core component of the future integrated defense system. The company is actively supporting U.S. government architecture planning and is well-positioned to lead in scaleable, multi-layered missile defense solutions. 📊 Tax Dispute and Legal Contingency The IRS is asserting a $XXX billion tax liability related to revenue recognition changes tied to ASC XXX and the 2017 tax law. Lockheed Martin strongly disputes this claim, citing prior IRS acceptance of its accounting method; $XXX million interest expense was accrued in Q2 as a prudent interim measure. Management remains confident the claim will be resolved favorably and maintains the company’s approach aligns revenue and cost recognition appropriately. The issue is being pursued through IRS appeals processes and may go to judicial review if necessary. 🛡️ Strategic Outlook and Management Commitment Leadership emphasized a dual focus on national defense execution and shareholder value creation, recognizing the impact of Q2 charges but stressing long-term positioning. Operational excellence, risk reduction, and profitable program delivery remain top priorities; recurring senior leadership reviews are being institutionalized across all segments. The company reiterated its target of returning at least $X billion annually to shareholders and reaffirmed its confidence in sustained backlog growth and strategic capability expansion. Lockheed Martin's integrated defense portfolio, real-world combat validation, and global demand continue to underpin a robust long-term growth thesis. XXXXX engagements  **Related Topics** [lmt](/topic/lmt) [digits](/topic/digits) [quarterly earnings](/topic/quarterly-earnings) [$lmt](/topic/$lmt) [lockheed martin](/topic/lockheed-martin) [coins solana ecosystem](/topic/coins-solana-ecosystem) [coins pump fun](/topic/coins-pump-fun) [stocks industrials](/topic/stocks-industrials) [Post Link](https://x.com/LongYield/status/1948003491839959330)
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LongYield @LongYield on x 4488 followers
Created: 2025-07-23 12:53:19 UTC
$LMT Lockheed Martin Corporation Earnings Call Key Highlights: (2/2)
📦 Business Segment Highlights
Aeronautics: Sales up X% to $XXX billion, driven by F-35 production; excluding the $XXX million classified charge, operating profit would have grown high single digits.
Missiles and Fire Control (MFC): Sales rose XX% to $XXX billion, led by HIMARS, JASSM/LRASM, and PrSM; operating profit increased X% to $XXX million, offset slightly by PAC-3 rate adjustments.
Rotary and Mission Systems (RMS): Sales fell XX% to $X billion due to CMHP and TUHP charges; excluding these, RMS sales declined mid-single digits due to reduced SEAHAWK and Canadian Surface Combatant volume.
Space: Sales increased 4%, with strength in Orion, Next-Gen Interceptor, and Fleet Ballistic Missile programs; operating profit rose 5%, aided by booking rate improvements and two new GPS IIIF orders.
💵 Updated 2025 and Preliminary 2026 Outlook
2025 sales guidance reaffirmed at $73.75–$74.75 billion, with expected backlog growth from F-35 Lots 18–19, JASSM/LRASM, CH-53K, PAC-3, and classified space programs.
Segment operating profit revised to $6.6–$6.7 billion; EPS lowered to $21.70–$22 due to charges and tax-related adjustments.
Free cash flow outlook maintained at $6.6–$6.8 billion for 2025, reflecting $XXX million headwind from Aero Classified and tariff delays, partially offset by $400–$600 million in R&D tax relief from the “One Big Beautiful Bill Act.”
2026 FCF expected to be ~$6 billion due to continued program investments and a planned $X billion pension contribution; 2027 and beyond anticipated to return to low-to-mid single-digit FCF growth.
⚙️ Contracting Discipline and Future Program Oversight
Management reaffirmed its no “must-win” policy and commitment to robust contract evaluation to avoid future fixed-price program risks.
New review structures, subject-matter expert oversight, and independent risk audits now govern all complex or high-risk programs.
The company is engaging U.S. government customers to restructure or de-risk high-profile contracts (e.g., Aero Classified, CMHP, TUHP) while ensuring continued mission-critical delivery.
Lessons learned from troubled programs are being systematically shared and applied across the portfolio to enhance risk identification and control.
🌐 Golden Dome and Homeland Defense Initiatives
Lockheed Martin plays a central role in shaping the emerging Golden Dome homeland defense architecture through its proven missile defense systems (PAC-3, THAAD, Aegis) and command-and-control integration.
No backlog contributions have been recognized yet, as procurement contracts are still pending; however, internal investments are ramping in anticipation.
Complementary technologies like Counter-UAS are under development and will form a core component of the future integrated defense system.
The company is actively supporting U.S. government architecture planning and is well-positioned to lead in scaleable, multi-layered missile defense solutions.
📊 Tax Dispute and Legal Contingency
The IRS is asserting a $XXX billion tax liability related to revenue recognition changes tied to ASC XXX and the 2017 tax law.
Lockheed Martin strongly disputes this claim, citing prior IRS acceptance of its accounting method; $XXX million interest expense was accrued in Q2 as a prudent interim measure.
Management remains confident the claim will be resolved favorably and maintains the company’s approach aligns revenue and cost recognition appropriately.
The issue is being pursued through IRS appeals processes and may go to judicial review if necessary.
🛡️ Strategic Outlook and Management Commitment
Leadership emphasized a dual focus on national defense execution and shareholder value creation, recognizing the impact of Q2 charges but stressing long-term positioning.
Operational excellence, risk reduction, and profitable program delivery remain top priorities; recurring senior leadership reviews are being institutionalized across all segments.
The company reiterated its target of returning at least $X billion annually to shareholders and reaffirmed its confidence in sustained backlog growth and strategic capability expansion.
Lockheed Martin's integrated defense portfolio, real-world combat validation, and global demand continue to underpin a robust long-term growth thesis.
XXXXX engagements
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