Lockheed records surge in missile sales as Ukraine war drives demand
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This surge stems from growing orders for tactical and strike missile programs, including the Joint Air-to-Surface Standoff Missile (JASSM), Long Range Anti-Ship Missile (LRASM), and precision fires systems.
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FILE - A man walks past a Lockheed Martin logo as he walks through a section of the company's chalet bridging a road at Farnborough International Airshow in Farnborough, southern England, July 19, 2006 (AP Photo/Matt Dunham, File)
Lockheed Martin posted a robust first-quarter performance in 2025, driven by continued global demand for advanced missile systems amid the ongoing war in Ukraine.
The company's Missiles and Fire Control (MFC) segment recorded a 50% jump in operating profit, reaching $465 million, up from $311 million during the same period in 2024.
This surge stems from growing orders for tactical and strike missile programs, including the Joint Air-to-Surface Standoff Missile (JASSM), Long Range Anti-Ship Missile (LRASM), and precision fires systems.
Battlefield staples such as HIMARS and GMLRS, now central to Ukraine's military strategy, were key contributors to the growth. Overall, MFC segment sales rose 13% year-over-year to $3.373 billion in Q1 2025.
$LMT | Lockheed Martin beat earnings and revenue estimates in Q1 and reaffirmed its FY outlook. The stock is +2.7% this morning.
, CMG Venture Group (@CmgVenture) April 22, 2025
🔹 EPS: $7.28 vs. $6.34 est. ✅
🔹 Revenue: $17.96B vs. $17.78B est. ✅
Key takeaways:
🔸 Aeronautics revenue: +3% YoY
🔸 Rotary/mission revenue: +6%… pic.twitter.com/UCPW4YAEMz
Lockheed's gains come amid renewed diplomatic efforts to end the conflict. US President Donald Trump announced he will soon unveil a peace plan that includes a potential ceasefire, a European-led "resiliency force" to enforce it, and even US recognition of Crimea as Russian territory.
While such a deal could shift the trajectory of the war, its impact on long-term defense spending remains uncertain, especially as many NATO countries continue to ramp up military procurement in anticipation of prolonged instability in Europe.
Despite suffering an $804 million operating loss in late 2024, due to a $1.31 billion charge tied to a classified program, the MFC division showed strong underlying resilience, logging $450 million and $456 million in operating profits in Q2 and Q3 of 2024, respectively. The Q4 setback was largely seen as an outlier, and the latest quarterly results confirm a return to solid profitability.
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Since the war began in 2022, Lockheed Martin's MFC segment has grown steadily, with annual sales rising from $11.32 billion in 2022 to $12.68 billion in 2024, buoyed by extensive Western military support to Ukraine and elevated procurement across NATO countries.
For Q1 2025, total net sales rose 4% to $18.0 billion, while net earnings reached $1.7 billion, underscoring how Lockheed's core weapons platforms continue to benefit from sustained geopolitical tensions.
Analysts note that even if a ceasefire materializes, the broader strategic realignment underway in Europe will likely preserve high demand for next-generation weapons systems.
