Lockheed Martin raises profit forecast amid strong global defense demand

Lockheed Martin, a defense contractor based in Bethesda, Maryland, has raised its profit and sales forecasts, anticipating a per-share profit of $26.65 for 2024, which is an increase over its earlier estimate. This adjustment is fueled by increased military equipment demand in response to escalating global tensions and ongoing conflicts like the Russia-Ukraine war. The company is also projecting full-year sales of $71.25 billion, which sits slightly above the midpoint of its previous forecasts. Despite this positive outlook, Lockheed Martin faces hurdles with its F-35 program, particularly due to delays in an upgrade crucial for enhancing the fighter jet's processing power. The U.S. military had previously halted deliveries because of these delays but resumed them earlier this year under a truncated upgrade plan. As a result, Lockheed is currently required to manage payments for parts intended for delivery in the coming years, which is creating financial pressures on the company. Lockheed's overall revenue reached $17.10 billion for the third quarter, falling short of analysts' expectations. While the F-35 program's business experienced a 3 percent sales decline, Lockheed's earnings per share did exceed forecasts, standing at $6.80. Lockheed's CFO indicated that better funding throughout this period could have resulted in closer to 5 percent sales growth. The increased defense spending spurred by global tensions has undeniably benefited arms manufacturers, though challenges in key programs remain an area of concern for investors and stakeholders.