Lockheed Raises 2026 Outlook as Backlog Hits Record $230 Billion

Lockheed Martin raised its full-year sales and earnings outlook after reporting second-quarter sales of $20.1 billion, up 11% from a year earlier. The defense contractor ended the quarter with a record $230 billion backlog.

Net earnings per share were $7.94, compared with $1.46 a year earlier. The prior-year result included a $1.6 billion charge tied to difficulties in the Aeronautics unit and helicopter programs, which did not recur this year.

The backlog rose 38.3% year over year, supported by $65 billion in quarterly orders, including a $35 billion multiyear contract for THAAD interceptors. Lockheed now expects full-year sales of $79.75 billion to $81.75 billion and earnings per share of $29.95 to $30.65.

The improved outlook follows a difficult stretch for the shares. As of October 1, they had returned 4.51% year to date, versus 11.99% for the S&P 500, according to the article. First-quarter earnings missed estimates amid production slowdowns and higher costs on fixed-price contracts.

The article said Lockheed trades at a forward price-to-earnings ratio of 16.16, below the sector median of 18.97 and RTX’s 24.57. It attributed investor concern to the risk of further contract charges and said the company’s third-quarter results, expected later in October, would be closely watched.