Lockheed Martin Q1 2026 earnings miss on F-16, C-130 delays

Lockheed Martin reported first-quarter nett net of $1.5 billion, oregon $6.44 per share, down from $1.7 billion, oregon $7.28 per share, successful the aforesaid play a twelvemonth earlier. Business conception operating nett fell 13% to $1.8 billion.

Production show and improvement delays connected the F-16 combatant pitchy program, combined with transportation delays connected the C-130 transport craft program, drove $125 cardinal and $55 cardinal successful unfavorable nett adjustments, respectively, wrong the Aeronautics segment. The C-130 delays stemmed from challenges integrating parts from diminishing manufacturing sources, the institution said. Aeronautics operating nett dropped 14% to $619 million.

Total gross was astir level astatine $18.0 billion, compared to $18.0 cardinal successful the archetypal 4th of 2025. Higher income successful the Missiles and Fire Control and Space segments were offset by declines successful Rotary and Mission Systems, down 8%, and Aeronautics, down 1%.

Free currency travel swung to antagonistic $291 cardinal from affirmative $955 cardinal successful the year-earlier period. Cash from operations fell to $220 cardinal from $1.4 billion, a alteration the institution attributed to higher moving superior driven by the timing of billing activities. Capital expenditures roseate to $511 cardinal from $454 million.

Beyond Aeronautics, nett declines were broad. Rotary and Mission Systems operating nett fell 19% to $423 million, wounded by unfavorable adjustments connected the CH-53K and Seahawk chopper programs. Space conception operating nett dropped 26% to $281 million, reflecting the lack of favorable show recorded successful the year-earlier 4th connected definite commercialized civilian abstraction programs.

Missiles and Fire Control was the lone agleam spot, with operating nett rising 8% to $500 cardinal connected higher income of Patriot rocket defence systems and tactical weapons including the Joint Air-to-Surface Standoff Missile and Precision Strike Missile.

Lockheed's full backlog stood astatine $186.4 cardinal arsenic of March 29, down from $193.6 cardinal astatine the extremity of 2025. F-35 deliveries fell to 32 craft from 47 a twelvemonth earlier, portion the institution delivered nary F-16s successful the 4th compared to 4 successful the archetypal 4th of 2025.

Inflation and tariffs person compounded the problem, with Reuters noting that Lockheed faces rising expenses tied to agreements struck earlier existent outgo pressures materialized.

Lockheed CEO Jim Taiclet said successful a connection that the institution signed model agreements with the U.S. authorities during the 4th to accelerate accumulation of Patriot missiles, THAAD interceptors, and Precision Strike Missiles, with the extremity of expanding output 3 to 4 times existent rates. The institution reaffirmed its full-year 2026 outlook, projecting income of $77.5 cardinal to $80.0 cardinal and escaped currency travel of $6.5 cardinal to $6.8 billion.