Lockheed Martin Corp (NYSE:LMT) stock fell 0.15% (As on April 23, 11:23:41 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings that exceeded analyst expectations, driven by strong performance across its business segments. LMT’s sales growth was primarily fueled by its Missiles and Fire Control segment, which saw a 13% increase in revenue to $3.37 billion. The company attributed the rise to production ramp-ups in tactical and strike missile programs, including JASSM, LRASM, and precision fires systems. Lockheed Martin reported a backlog of $173 billion, representing over two years of sales. The company returned $1.5 billion to shareholders through dividends and share repurchases during the quarter. Net earnings in the first quarter of 2025 were $1.7 billion compared to $1.5 billion, in the first quarter of 2024. Cash from operations was $1.4 billion in the first quarter of 2025, compared to $1.6 billion in the first quarter of 2024. Free cash flow was $955 million in the first quarter of 2025, compared to $1.3 billion in the first quarter of 2024. The company continued investing in the business with over $850 million of research and development and capital expenditures in the quarter.

Meanwhile, LMT and Lockheed Martin Aeronautics Co. based in Fort Worth, Texas, have been awarded a cost modification contract, not to exceed $180 million. The contract is an addition to a previously awarded contract (N0001923C0003) and will cover the procurement of materials, parts, and components needed to convert three production F-35 aircraft into flight science replacement aircraft. The new flight science aircraft will enable comprehensive future flight science testing of block four capabilities. The testing will benefit the Air Force, Marine Corps, Navy, non-U.S. Department of Defense (DOD) program partners, and Foreign Military Sales customers.

LMT in the first quarter of FY25 has reported the adjusted earnings per share of $7.28, beating the analysts’ estimates for the adjusted earnings per share of $6.35. The company had reported the adjusted revenue growth of 4 percent to $18 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $17.78 billion. The Aeronautics segment, which includes the F-35 fighter jet program, reported sales of $7.06 billion, up 3% from Q1 2024.

For the full-year 2025 guidance, the company projects earnings per share between $27.00 and $27.30 on revenue of $73.75 billion to $74.75 billion. These figures align closely with analyst expectations of $27.22 EPS and $74.47 billion in revenue.