World’s largest arms producer sees earnings soar as international battle rages

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Your assist makes all of the distinction. Learn extra Lockheed Martin has projected 2026 earnings and income that surpass Wall Avenue's expectations, pushed by sustained international demand for its superior fighter jets and weapons programs.

Following the announcement, the corporate's shares noticed a 7.1% enhance in early New York buying and selling.

The surge in demand for armaments is essentially attributed to ongoing conflicts within the Center East and Russia's extended struggle in Ukraine, considerably boosting gross sales for main defence contractors resembling Lockheed.

Additional exacerbating geopolitical tensions is the latest seize of the Venezuelan president by U.S. forces.

Lockheed's F-35 and F-22 fighter jets, RQ-170 stealth drones and Sikorsky Black Hawk helicopters had been used within the operation, CEO Jim Taiclet instructed buyers on a post-earnings convention name.

<img src="https://static.independent.co.uk/2026/01/26/15/59/GettyImages-2240466642.jpg" srcset="https://static.independent.co.uk/2026/01/26/15/59/GettyImages-2240466642.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/01/26/15/59/GettyImages-2240466642.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Soldiers stand by Belgium's air force first ever F-35 fighter jets." class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Troopers stand by Belgium's air power first ever F-35 fighter jets. (AFP/Getty) Earlier this month, Lockheed clinched a seven-year settlement with the Division of Protection to spice up manufacturing of Patriot PAC-3 missile interceptors to 2,000 items yearly, up from 600.

Lockheed additionally mentioned on Thursday that it had reached a take care of the division to greater than quadruple manufacturing of its Terminal Excessive Altitude Space Protection, or THAAD, missile interceptors to 400 per yr, up from 96 beforehand.

If Lockheed Martin exceeds sure manufacturing and revenue targets on its Patriot and THAAD contracts, administration mentioned "we begin to share a few of the elevated earnings with the U.S. authorities by plowing a few of these elevated earnings again" into spares or the manufacturing facility.

Conversely, if Congressional appropriations do not assist the deliberate multi-year munitions buys, administration mentioned there are "make entire" provisions within the contracts to assist Lockheed Martin keep away from losses.

In the course of the fourth quarter, the corporate's missiles enterprise, maker of the Patriot system, posted the quickest gross sales progress, up 17.8% from a yr in the past.

Quarterly gross sales for its aeronautics section, which is the main section by income and makes the F-35 jets, rose 6.4%.In January, Lockheed mentioned it delivered a file 191 F-35 fighter jets in 2025, up from 110 jets in 2024.

<img src="https://static.independent.co.uk/2025/07/16/5/48/FILE-PHOTO-Ukrainian-President-Volodymyr-Zelenskiy-visit-to-a-military-training-area-vy8wr14c.jpeg" srcset="https://static.independent.co.uk/2025/07/16/5/48/FILE-PHOTO-Ukrainian-President-Volodymyr-Zelenskiy-visit-to-a-military-training-area-vy8wr14c.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/07/16/5/48/FILE-PHOTO-Ukrainian-President-Volodymyr-Zelenskiy-visit-to-a-military-training-area-vy8wr14c.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Ukrainian soldiers being trained to use the Patriot anti-aircraft missile system." class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Ukrainian troopers being skilled to make use of the Patriot anti-aircraft missile system. (through REUTERS) The F-35 is the Pentagon's largest acquisition program, with lifetime prices estimated at greater than $2 trillion for buying, working and sustaining the plane.

Trump in January signed an order for protection companies linking dividends, share buybacks and government pay to weapons supply schedules, introducing uncertainty round capital returns.

Friends RTX and Northrop Grumman have reaffirmed their dedication to dividends, though Northrop mentioned it will pause buybacks past January.In 2025, Lockheed paid $3.13 billion in dividends, an increase from $3.06 billion the earlier yr.

Lockheed forecast 2026 income of $77.5 billion to $80 billion, above analysts' estimates of $77.83 billion, in keeping with LSEG-compiled information.It expects revenue per share between $29.35 and $30.25, versus expectations of $29.28.