Lockheed Martin (LMT) official guidance

We are also updating our capital expenditure guidance to a range of $2 billion-$2.4 billion, reflecting efficiencies realized in Missiles and Fire Control's munitions build-out.

Earnings per share is now projected at $29.95-$30.65, driven by higher year-to-date profits and a lower effective tax rate.

The higher sales volume pushes the profit outlook up to between $3 billion and $3.08 billion.

The profit range is now $2.3 billion-$2.35 billion, reflecting continued mid-teens margin performance.

The profit outlook at RMS is also raised and is now between $1.86 billion and $1.89 billion, keeping margins steady relative to the prior outlook.

The Space full year profit outlook was lowered to between $1.34 billion and $1.38 billion due to reduced ULA equity earnings because of the ongoing technical investigation of the Vulcan launch anomaly experienced earlier this year.

Correspondingly, we are increasing our segment operating profit target to now $8.5 billion-$8.7 billion.

The profit range is now $2.3 billion-$2.35 billion, reflecting continued mid-teens margin performance.

We now project Aeronautics to deliver full-year 2026 sales of $31.7 billion-$32.7 billion, driven by strong F-35 production and sustainment volumes.

MFC's sales range has been adjusted to $16.5 billion-$16.9 billion, lifting the low end of our prior guidance.

At RMS, the new radar awards Jim and Evan mentioned give us confidence to increase the full-year sales outlook to between $17.7 billion and $18.1 billion.

We now anticipate 2026 sales of between $13.85 billion and $14.05 billion, supported by key wins on the Next Generation Interceptor, Fleet Ballistic Missile, and several classified national security programs.

We now expect total sales of $79.75 billion-$81.75 billion, representing an 8% year-over-year increase at the midpoint, up from the prior 5% guidance.

Our updated outlook accelerates Aeronautics' growth rate to the mid-single digits for the second half of this year.

Our updated full-year outlook indicates RMS will accelerate to a mid-single digit year-over-year growth rate in the second half, driven by the higher radar volumes and continued production ramps at Sikorsky.

Our revised outlook pegs our second half of 2026 growth rate in the high single digits and perhaps even the low double digits, a year-over-year increase of between 7% and 12% as compared to the second half of 2025.

| | Free cash flow1 | ~$7,000 - $7,200 | $6,500 - $6,800 |

| | Cash from operations | ~$9,200 - $9,400 | $9,150 - $9,450 |

| | Business segment operating profit1 | ~$8,500 - $8,700 | $8,425 - $8,675 |

| | Total FAS/CAS pension adjustment | ~$1,365 | ~$1,365 |

With respect to the cash burn on our classified programs, I'd still think of that as kind of the $500 million-$700 million a year, for this year and next year, and then we expect to see a pretty sizable drawdown on that cash draw, depending on how that goes.

With respect to the cash burn on our classified programs, I'd still think of that as kind of the $500 million-$700 million a year, for this year and next year, and then we expect to see a pretty sizable drawdown on that cash draw, depending on how that goes.

It is also important to note that we expect margins to improve over the course of the year, with gains anticipated in the second half of 2026 as production milestones are achieved and risks are retired.

Shifting to chart nine, our 2026 financial outlook remains consistent with the expectations we shared in January, including mid-single-digit% sales growth, profit of $8.4 billion-$8.7 billion, and free cash flow range of $6.5 billion-$6.8 billion.

| | Consolidated operating profit (GAAP) | $9,435 - $9,685 |

We expect deliveries to be in line with the production rate this year.

F-35 production will see a slight lift due to lot mix and pricing, with the production rate holding steady at 156 aircraft per year.

Aero margins of 9.8% at the midpoint reflect the dilutive nature of the growth in Skunk Works and from F-35 sustainment.

RMS margins at 10.5% at the midpoint include impacts due to portfolio mix and program life cycles.

Space margins in the midpoint are slightly above 10% and include higher equity earnings related to ULA.

That requirement does come back in starting in 2027, of at least $1 billion, depending on how we look in terms of pension performance this year.

We expect low single-digit overall growth in 2026, with Skunk Works and F-35 sustainment leading the way, each with the potential for double-digit growth year-over-year.

We expect low single-digit overall growth in 2026, with Skunk Works and F-35 sustainment leading the way, each with the potential for double-digit growth year-over-year.

At MFC, we estimate the ongoing missile production ramps to drive 14% year-over-year sales growth at the midpoint, with margins expected to remain consistent with 2025 levels.

Next, at RMS, we anticipate overall sales to grow in the low single-digit range, with higher growth coming from Sikorsky, driven by the CH-53K and Black Hawk programs, partially offset by program timing and lifecycle headwinds on several radar and training programs.

We expect low single-digit overall growth in 2026, with Skunk Works and F-35 sustainment leading the way, each with the potential for double-digit growth year-over-year.

Finally, Space is projected to grow approximately 5% year-over-year at the midpoint, with strong growth expected on fleet ballistic missile, NGI, and hypersonic programs within the Strategic and Missile Defense systems portion of the business, as well as solid growth from space tracking and communication missions due to the Space Development Agency's Transport and Tracking Layer programs.

during the Q3, we delivered 46 aircraft and now expect between 175 and 190 deliveries in 2025.

Back to the company level, on earnings per share, we are increasing our estimate to a range of $22.15-$22.35, incorporating the $50 million of incremental segment margin operating profit, as well as lower estimated full-year tax rate, now estimated to be approximately 16.7%, and as our release stated, the EPS outlook excludes any non-cash impacts from the conversion of pension annuity contracts that are currently under evaluation and could occur as early as the Q4.

Back to the company level, on earnings per share, we are increasing our estimate to a range of $22.15-$22.35, incorporating the $50 million of incremental segment margin operating profit, as well as lower estimated full-year tax rate, now estimated to be approximately 16.7%, and as our release stated, the EPS outlook excludes any non-cash impacts from the conversion of pension annuity contracts that are currently under evaluation and could occur as early as the Q4.

We remain focused on operational performance and capitalizing on the unprecedented demand cycle to deliver mid-single-digit top-line growth in 2025 while generating $6.6 billion of free cash flow.

We now expect segment operating profit to be in the range of $6.675 billion-$6.725 billion, maintaining a midpoint margin of 9%.

So as stated, this year, we're targeting to pre-fund a portion of 2026's required $1 billion cash pension.

Building off the solid year-to-date growth, we're tightening the sales guidance range to $74.25 billion-$74.75 billion, up $250 million at the midpoint, and implying 5% organic growth year over year.

| | Capital expenditures | ~$1,900 | ~$1,900 |

| | Cash from operations | ~$8,500 | ~$8,500 - $8,700 |

| | Consolidated operating profit (GAAP) | ~$7,585 - $7,635 | ~$7,530 - $7,630 |

| | Business segment operating profit1 | ~$6,675 - $6,725 | ~$6,600 - $6,700 |

| | Total FAS/CAS pension adjustment | ~$1,125 | ~$1,125 |