Lockheed Martin Q2 Results: Defense Equipment Maker’s Net Profit Tanks 80%, Revenue Down to $ 18.16 Billion

July 22 (Reuters) – Lockheed Martin Reported on Tuesday that its second -Quarter Profit Plunged By About 80%, after the Us Defense Group Recorded a pretax losses of $ 1.6 billion, mantra linked to a Classified Program Within Its Aeronautics Segment.

The company’s shares fell 7.9% in Premarket Trading as the Company also trimmed its 2025 profit estimate by $ 1.5 billion or 18% and said it not targets $ 6.65 billing for the year.

This new guidance, revised Down since the company’s last estimate in April, did not include potential impacts from tarifs which have impacted others defense companies with interactive customers.

“Overall, the company’s foundation remains solid and resilient,” Chief Executive Jim Taiclet said in the company’s earnings statement.

Net Income Fell to $ 342 Million, OR $ 1.46 per share, compared with $ 1.64 billion, or $ 6.85 per share, a year earlier. Lockheed said the charge stemmed from differenties with a classified program in its aeronautics business business and Several International Helicopter Programs in Itsky Unit.

Defense Contractors are Grappling with Mounting Cost Pressures as Inflation and Supply Chain Disrupttions Drive UP Expenses on Long-Term Programs PRICED YEARS EGA

Many of these contracts-often fixed-price-Were Negotiated Before The Post-Pandemic Surge in Labor, Material, and Component Costs, FORICING Contracts Such as Locheed to Absorb OVEROUNS.

Apart from the $ 950 million charge on the classified program, lock

“The company is in ongoing discussions with the customer regarding a potential restructure to certain contracuual terms and conditions and to expand the scope of work that would be benefacial to both parties,” Said of the program.

Excluding these Charges, however, the group posted an adjusted Profit of $ 7.29 per share, beating an average estimate of $ 6.44 per share according to data compiled by LSEG.

Lockheed Missed Wall Street Estimates for Second-Quarter Revenue, Which came in at $ 18.16 billion, compared with an average expectation of $ 18.57 billion. (Reporting by utkarsh sheetti in Bengaluru and mike stone in washington; editing by tasim zahid and david holmes

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