Lockheed Martin Corp. reported a strong finish to 2025, with fourth-quarter sales climbing to $20.3 billion, up from $18.6 billion in the same period a year earlier. To read the details follow this link to the company’s news release.

The aerospace and defense giant said net earnings for the quarter were $1.3 billion, or $5.80 per share, a substantial increase from $527 million, or $2.22 per share, in the fourth quarter of 2024. That prior period included $1.7 billion in losses related to classified programs.

Cash from operations reached $3.2 billion, tripling the $1.0 billion posted a year ago. Free cash flow rose to $2.8 billion, following a pension contribution of $860 million. In comparison, free cash flow in the fourth quarter of 2024 was $441 million after a $990 million pension contribution.

Chairman, President and CEO Jim Taiclet attributed the results to rising demand for the company’s military systems and technologies, citing a record $194 billion backlog and 6% year-over-year sales growth.

“This escalating demand for our signature programs and systems has been driven by combat-proven performance over recent years that has already been again demonstrated in 2026,” Taiclet said. He noted that Lockheed’s F-35 and F-22 fighter jets, RQ-170 drones, and Sikorsky Black Hawk helicopters played a key role in the U.S. military’s Operation Absolute Resolve.

In 2025, Lockheed invested over $3.5 billion in production capacity and next-generation technologies. Taiclet said the company is well-positioned to support the Department of War’s Acquisition Transformation Strategy, highlighting a new seven-year framework agreement for PAC-3 missiles.

“This notable start to 2026 reinforces our confidence in Lockheed Martin’s continued operational and financial growth in the year ahead,” he added.

Looking ahead, the company expects sales and segment operating profit to grow by approximately 5% and 25% year-over-year, respectively. Free cash flow is forecast between $6.5 billion and $6.8 billion.