Lockheed Martin raised its annual sales and profit forecasts on Thursday after beating Wall Street estimates for third-quarter results, as ongoing geopolitical conflicts drove demand for its missile defence systems and fighter jets.
Shares of the company rose nearly five per cent in premarket trading.
The company, a key supplier of missile-defence systems such as PAC-3 and THAAD interceptors, joined RTX and Northrop Grumman in raising forecasts this week on strong demand for munitions, air-defence systems and military aircraft.
Lockheed now expects 2026 sales of about US$80 billion to US$82 billion, up from its prior forecast of US$79.75 billion to US$81.75 billion.
The U.S. defence contractor also lifted its annual earnings-per-share forecast to range between US$30.35 and US$30.75 from its previous view of US$29.95 to US$30.65.
The company’s backlog rose 27 per cent sequentially to a record US$292 billion, boosted by a US$52.5 billion multi-year award for PAC-3 Missile Segment Enhancement interceptors, stockpiles of which were heavily used by U.S. and allied forces in the Iran war.
Lockheed also raised its 2026 free cash flow forecast to about US$7.8 billion to US$8 billion, from US$7 billion to US$7.2 billion earlier.
However, the company warned it remains in negotiations with the U.S. government over production contracts for F-35 Lots 20 and higher, and said future operations and cash flow could be affected if additional contractual authorization and funding are not received.
Separately on Thursday, Lockheed and the U.S. Department of Defense, which U.S. President Donald Trump calls the Department of War, said they had finalized a 10-year framework agreement for at least 850 U.S. F-35 aircraft and US$7 billion in industrial-base investments.
Sales for the quarter ended on September 27 rose 11 per cent to US$20.71 billion, driven by 24 per cent growth in its missiles unit on higher PAC-3 and THAAD production and a 13 per cent increase in aeronautics revenue from F-35 and C-130 programs.
Analysts estimated US$20.51 billion, according to data compiled by LSEG.
In an interview with Reuters, CFO Evan Scott said a fourth-quarter increase in capital spending would be driven primarily by investments to expand munitions production capacity.
Third-quarter profit of US$7.97 per share came in above analysts’ estimate of US$7.43 per share.
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Reporting by Aatreyee Dasgupta and Mike Stone; Editing by Leroy Leo
