NEW YORK, July 24, 2026, 06:08 EDT
- Shares finished Thursday at $568.59, rising 10.5%. The most recent premarket price was $568.63.
- Lockheed Martin Corp LMT said the midpoint for 2026 free cash flow increased by $450 million, while planned capital expenditures declined by an equal amount.
- Backlog hit a record $230.4 billion. New orders amounted to roughly 3.2 times the company’s quarterly revenue.
Shares of Lockheed Martin Corporation NYSE:LMT jumped 10.5% on Thursday as the company delivered better-than-expected quarterly results and lifted its outlook. The stock ended the session at $568.59, with trading volume more than double its usual level.
The key investment indicator is found within the cash-flow improvement. Lockheed increased its projected 2026 free-cash-flow midpoint by $450 million.
Operating cash flow was flat at the midpoint. The overall gain corresponded with a $450 million reduction in projected capital expenditures.
The difference is significant amid a major production increase. Short-term cash saw gains, while the underlying operating cash flow remained unchanged.
| 2026 guidance | April range | July range | Midpoint change |
|---|---|---|---|
| Sales | $77.50–$80.00 billion | $79.75–$81.75 billion | Rise of $2.00 billion, or 2.5% |
| Cash from operations | $9.15–$9.45 billion | $9.20–$9.40 billion | No change |
| Capital spending | $2.50–$2.80 billion | $2.00–$2.40 billion | Decrease of $450 million, or 17.0% |
| Free cash flow | $6.50–$6.80 billion | $7.00–$7.20 billion | Increase of $450 million, or 6.8% |
| Diluted EPS | $29.35–$30.25 | $29.95–$30.65 | Gain of $0.50, or 1.7% |
Early midpoint estimates are derived from company guidance. Free cash flow is a non-GAAP figure defined by the company.
Chief Financial Officer Evan Scott stated that the reduced capex was partly due to timing. According to Scott, a missile facility will initially be leased and acquired next year to optimize taxes. The $8 billion-to-$9 billion munitions pledge “is unchanged,” Scott said. Investing.com
Some cost reductions could be permanent. Partners are able to supply factory facilities and capital as Lockheed increases production. Scott noted a “real opportunity here for more partnerships to scale production faster, particularly in Europe.” Reuters
Demand remains strong. Lockheed secured $65 billion in orders compared to $20.1 billion in quarterly revenue, leading to an initial book-to-bill ratio of 3.2. The backlog stood at $230.4 billion, roughly 2.9 times its projected yearly sales.
Growth was led by Missiles and Fire Control. Revenue climbed 19% to $4.10 billion and operating profit advanced 24%. Increases in PAC-3, THAAD and Precision Strike Missile volumes supported the rise.
Group sales increased by 11% to $20.1 billion. Diluted EPS stood at $7.94. The updated sales range surpassed the analyst estimate of $79.14 billion. The same period last year reflected $1.6 billion in program losses and $169 million in additional charges.
RTX Corporation NYSE:RTX lifted its guidance on Thursday. The stock rose 7.7%, while Lockheed shares added 10.5%. RTX posted a 14% increase in sales and reported a backlog of $289 billion.
Regular U.S. trading was shut at 06:08 EDT Friday, while premarket trading remained active. Lockheed last traded at $568.63 at 06:03 EDT, little changed.
Lockheed shares declined 2.8% over the prior week based on closing prices, then climbed 11.8% from July 17 to Thursday. Trading volume on Thursday reached about 2.4 times the 65-day average.
A peer review session is set for next week. General Dynamics Corporation NYSE:GD will announce its second-quarter earnings on Wednesday, July 29. Lockheed has no investor events scheduled on its calendar.
Risks: Some of the capex reduction will defer expenditures to 2027. Lockheed is ramping up output for 10 munitions lines and multiple aircraft projects. Technical benchmarks for classified programs remain demanding. A delay in these areas could erode the cash conversion rate that has been favored by investors.
Thursday’s rally reflected expectations of robust demand and improved short-term cash flow. The upcoming challenge is determining if reduced spending signals lasting efficiency rather than postponed capacity investments.
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