Lockheed Martin Corp (NYSE:LMT) stock fell 0.76% (As on October 22, 11:43:21 AM UTC-4, Source: Google Finance) after the company raised its 2025 forecast for revenue and profit, driven by sustained demand for its fighter jets and munitions amid escalating geopolitical tensions. Weapons makers are benefiting from surging demand for arms as a result of simmering conflicts in the Middle East and a protracted Russia-Ukraine war. Lockheed, which makes the F-35 stealth fighters, said its aeronautics segment sales jumped 11.9% to $7.26 billion in the third quarter. It secured a long-awaited $12.5 billion contract from the Pentagon last month, for a total of 296 F-35 jets. Lockheed has also clinched some large agreements recently, including an about $11 billion navy contract to build up to 99 CH-53K King Stallion helicopters, and a nearly $10 billion contract for Patriot missiles. The commitments underscore a growing need for the U.S. government and its allies to replenish stockpiles and load up on new weapons. In contrast, during the second quarter, Lockheed grappled with a $1.6 billion charge, predominantly due to difficulties in its Aeronautics unit and international helicopter programs in its Sikorsky segment, which hurt shares. Lockheed, the largest defense contractor in the world, is also vying for a slice of the Trump administration’s $175 billion marquee Golden Dome missile shield, for which the Pentagon began seeking contractors last month.

LMT in the third quarter of FY25 has reported the adjusted earnings per share of $6.95, beating the analysts’ estimates for the adjusted earnings per share of $6.36. The company had reported the adjusted revenue growth of 8.8 percent to $18.61 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $18.56 billion, per data compiled by LSEG. The record defense demand from U.S. and allied governments pushed the firm’s backlog to a new high of $179 billion, underscoring sustained long-term visibility despite near-term margin pressures.

Additionally, the company also lifted its quarterly dividend by 5% to $3.45 per share and expanded its share repurchase authorization by $2 billion to a total of $9 billion. Operating cash flow climbed to $3.7 billion from $2.4 billion, while free cash flow improved to $3.3 billion from $2.1 billion.

Lockheed now expects a profit of $22.15 to $22.35 per share for 2025, compared with its previous estimate of $21.70 to $22.00. The company also raised the lower end of its sales outlook to $74.25 billion from $73.75 billion, while maintaining the higher end at $74.75 billion.