Lockheed Martin Corp. lifted its full-year outlook as the company’s missile systems portfolio was buoyed by rising global defense spending.
The company now expects adjusted 2026 earnings of $30.35 to $30.75 per share, up from a range of $29.95 to $30.65. Even the lower end of the new guidance exceeds the average analyst estimates compiled by Bloomberg.
The results are yet another example of how US defense firms are benefiting from heightened geopolitical tensions. Wars in Iran and Ukraine have boosted demand for products developed by Lockheed’s missiles and fire control segment, which posted a 24% operating profit increase from a year ago.
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Lockheed in July was awarded a seven-year, nearly $54 billion contract to almost triple production of its Patriot missile, which has been extensively used in both conflicts — just one of several blockbuster missile production deals that have been awarded to other firms, including RTX Corp.
The US Defense Department said Thursday it also plans to buy at least 850 additional F-35 fighter jets, in what could be the biggest contract in the program’s quarter-century history. shares were up 7.8% at 9:48 a.m. in New York.
The Pentagon awarded Lockheed a $35 billion contract to quadruple Terminal High Altitude Area Defense, or THAAD, interceptor production in June. Chief Financial Officer Evan Scott said in an interview that the company expects to enter into contracts to accelerate production for the Precision Strike Missile — or PrSM — and the Joint Advanced Tactical Missile, or JATM, next year.
Lockheed’s evolution of the Patriot — called PAC-3 Edge — was also recently selected by the US Army to advance in its Future Interceptor program.
The Bethesda, Maryland-based company reached a record backlog of $292 billion, including about $53 billion associated with PAC-3 MSE production.
“Our investments across the portfolio are now translating into capability, production and deliveries,” Scott said. “What matters to us now is turning that technology and strong demand into increased output and sustained financial performance, and you’re seeing that this quarter.”
Scott also pointed to new partnerships that are allowing Lockheed to move faster, including one with GM Defense in which the company delivered a first housing component 22 days after signing the contract.
Production continues to ramp up across the missiles portfolio. Lockheed has produced roughly 80 PAC-3 MSE missiles a month during the last couple of months, Chief Operating Officer Frank St. John said. That brings production to almost 1,000 missiles annually, on course for 2,000 a year. THAAD production grew 50% from last year and is expected to grow another 50% next year.
“We are already climbing the hill there,” he said.
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