Lockheed Q1 On Track; Acquires Amentum’s Rapid Solutions
Taking a Look at Lockheed Martin's (LMT) Q1 2025 Earnings Results.
Lockheed Martin (LMT) released its first-quarter 2025 earnings results earlier this week, followed the next day by the announcement of its acquisition of Amentum Rapid Solutions. Overall, the quarter’s performance was outstanding, and investors have every reason to be pleased.
Q1 2025 Snapshot
Solid Q1 2025 results: Sales increased 4% YoY to $18B, with net earnings of $1.7B (EPS $7.28 vs $6.39 in Q1’24). All four segments expanded their operating margins (Missiles & Fire Control margin rose to 13.8% from 10.4% last year), driving a 19% increase in segment operating profit. FCF was $955M, and backlog held at ~$173B (roughly 2+ years of revenue).
Guidance reaffirmed, outlook steady: LMT reaffirmed its full-year 2025 outlook, still targeting ~$74B in sales and around $27 EPS. Management voiced confidence in hitting these targets despite a “highly dynamic geopolitical and technical environment.” Robust demand signals support this optimism – the company notched significant new awards in its missiles business (Precision Strike, THAAD, JASSM/LRASM programs) and a Trident II contract, totaling up to $10B of future work, bolstering its already hefty order backlog.
Strategic ISR acquisition: LMT announced a definitive agreement to acquire Amentum’s Rapid Solutions business, a provider of multi-domain intelligence, surveillance & reconnaissance (ISR), advanced communications, and tactical systems. This strategic add-on brings niche tech capabilities – for example, Rapid Solutions’ electronically steered array systems – that complement Lockheed’s scale as a prime integrator. The deal is aimed at enhancing delivery of cutting-edge defense tech to customers’ critical missions, and the Rapid Solutions team will join Lockheed’s Space segment upon closing.
My Take
I’m encouraged by how LMT is executing. Q1 came in on target, and management’s steady hand (reaffirming guidance, emphasizing backlog execution) reinforces the view of LMT as a reliable defense compounder. The Rapid Solutions acquisition, while not a blockbuster, is a smart strategic bolt-on – it strengthens LMT’s tech edge in ISR and should integrate smoothly into the Space unit. The long-term thesis appears slightly strengthened here – their outlook remains solid and its growth runway in defense tech just got a bit wider.