Lockheed Martin reported an 11% year-on-year increase in third-quarter 2026 sales to $20.711 billion, driven by higher F-35 production and sustainment activity and rising missile output. Net earnings climbed 14% to $1.845 billion, or $7.97 per diluted share, while the Bethesda, Maryland-based company’s backlog reached a record $292.0 billion, including $52.5 billion linked to a multiyear PAC-3 Missile Segment Enhancement interceptor award.
All four business segments posted higher sales. Aeronautics revenue rose 13% to $8.214 billion as F-35 activity increased, while Missiles and Fire Control sales grew 25% to $4.501 billion. The latter benefited from production ramps for PAC-3 and THAAD air-defence systems, as well as GMLRS and PrSM missiles.
Cash from operations reached $3.4 billion and free cash flow was approximately $3.0 billion during the quarter. Lockheed Martin raised its 2026 outlook to approximately $80 billion-$82 billion in sales, diluted earnings per share of $30.35-$30.75 and free cash flow of $7.8 billion-$8.0 billion.
The company continues to negotiate with the US government on F-35 production contracts for Lot 20 and later lots. Costs under the Lot 20 advance-acquisition contract have exceeded current contractual authorisation and funding, creating a potential risk to future results and cash flow unless additional approval and funding are secured.