Lockheed Martin Corporation has reported second quarter 2025 sales of US$18.2 billion, compared to US$18.1 billion for the same period in 2024. Net earnings for the quarter stood at US$342 million, or US$1.46 per share, which included US$1.6 billion in programme losses and US$169 million in other charges. This is significantly lower than the US$1.6 billion, or US$6.85 per share, recorded in the second quarter of 2024.
Cash from operations declined sharply to US$201 million in the second quarter of 2025 from US$1.9 billion a year earlier. Free cash flow fell to negative US$150 million, compared to US$1.5 billion in the same period of 2024. The decrease in cash generation was primarily due to higher working capital, including increased receivables and contract assets linked to the F-35 programme, higher Sikorsky inventory, and billing cycle effects on national security space programme contracts.
The company also booked a charge of US$66 million, primarily related to the write-off of fixed assets following the U.S. Air Force's decision on the Next Generation Air Dominance (NGAD) programme. In addition, US$103 million in charges were recognised for uncertain tax positions related to proposed Internal Revenue Service adjustments on manufacturing contract accounting methods.
Lockheed Martin stated it has taken steps to address challenges within a classified programme at its Aeronautics business and certain international helicopter programmes within Sikorsky.
