LMT · 10-Q · 2026Q2 · Full report

Operating Profit and Margins

LOCKHEED MARTIN CORP · 2026-07-23 · Importance 78 · Surprise 74 · No source text

Six-month operating profit declined to $3.120 billion from $4.542 billion, while quarterly operating profit declined to $2.479 billion from $4.542 billion because 2025 included large reach-forward losses that distorted segment comparisons and 2026 included unfavorable contract adjustments. Aeronautics’ quarterly operating margin improved to 9.4% from negative 1.3% as the prior-year $950 million classified-program loss did not recur, but its six-month margin increased to 9.2% from 4.3% after a $125 million F-16 adjustment in 2026. MFC’s six-month operating profit rose 16% to $1.094 billion and its margin increased to 14.1% from 13.9%, supported by PAC-3, THAAD and PrSM volume and $65 million of favorable adjustments. RMS’ six-month operating profit increased $511 million to $862 million as 2025 CMHP and TUHP losses did not recur, while Space’s six-month operating profit fell 12% to $650 million because of favorable commercial civil-space program performance recorded in 2025.

Key facts

• During the quarter ended June 28, 2026, Aeronautics' operating profit was a loss of $98 million compared to operating profit of $1,379 million in the quarter ended June 29, 2025. source
• LOCKHEED MARTIN CORP's operating profit was $2,479 million for the quarter ended June 28, 2026 and $3,120 million for the six months ended June 28, 2026. source
• LOCKHEED MARTIN CORP's net earnings were $1,836 million for the quarter ended June 28, 2026 and $3,324 million for the six months ended June 28, 2026. source
• Product costs increased $594 million, or 4%, during the quarter ended June 28, 2026 versus the same period in 2025. source
• During the quarter ended June 28, 2026, service costs decreased $268 million, or 9%, versus the same period in 2025 primarily due to approximately $410 million lower service costs at RMS. source
• Other unallocated, net operating expenses were $308 million and $547 million during the quarter and six months ended June 28, 2026, compared to $244 million and $528 million during the quarter and six months ended June 29, 2025. source
• Diluted earnings per common share were $7.94 for the quarter ended June 28, 2026 and $14.38 for the six months ended June 28, 2026. source
• Non-service FAS pension expense was $80 million and $160 million during the quarter and six months ended June 28, 2026, compared to $99 million and $197 million for the comparable 2025 periods. source

Impact estimates