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Lockheed Martin lifts 2026 sales and free cash flow outlook
The defense contractor reported a record $230 billion backlog, driven by a $35 billion multiyear THAAD contract, and said it raised 2026 sales guidance to as much as $81.75 billion.
Lockheed Martin said it achieved a record $230 billion backlog, citing a $35 billion multiyear THAAD contract plus additional radar and space awards. The company attributed performance to steps including increased munitions capacity and expanded international co-production footprints ahead of contracted demand, while also pointing to a shift toward “Defense Technology” priorities.
The company said operational execution improved, with resumed F-16 deliveries and higher C-130 output, alongside technical progress in hypersonic and laser weapon programs. Management also described using AI-driven analytics and machine learning in production lines to optimize equipment performance, and it expects backlog growth of $64 billion year over year.
Lockheed Martin raised its 2026 sales guidance to a range of $79.75 billion to $81.75 billion, and it forecast 2026 free cash flow of $7.0 billion to $7.2 billion. The company said its outlook assumes sustained production of 156 F-35 aircraft per year, supported by working capital dynamics and favorable tax guidance.
The company also said it expects a book-to-bill ratio of 3.2 to 1, and it highlighted that munitions strategic framework agreements are designed to be cash-neutral. Lockheed Martin added that Missiles and Fire Control margin expansion depends on meeting aggressive schedule ramps, and it announced the acquisition of Ultra Maritime to strengthen undersea sensing and autonomous sea drone capabilities.