Lockheed Martin Corp (NYSE:LMT) shares jumped more than 5% on Thursday after the US defense contractor posted mixed quarterly results but pointed to a swelling order backlog and a major ramp-up in missile production that investors see as driving growth in the years ahead.
The company reported fourth-quarter earnings per share of $5.80, while revenue rose 9.1% from a year earlier to $20.3 billion, helped by record deliveries of its F-35 fighter jet. Net income for the quarter totaled $1.3 billion.
Despite the uneven earnings picture, Lockheed ended 2025 with a record backlog of $194 billion, underscoring sustained demand from the US government and allied nations amid rising global security tensions.
Investors also focused on Lockheed’s agreement with the US Department of Defense to dramatically expand production of its Terminal High Altitude Area Defense (THAAD) interceptors. Under a newly signed framework agreement, Lockheed aims to increase annual THAAD interceptor output to as many as 400 units from about 96 currently, a more than four-fold increase.
The production ramp, expected to unfold over the next seven years, builds on an earlier deal to accelerate output of the PAC-3 Missile Segment Enhancement interceptor. Lockheed plans to break ground on a new Munitions Acceleration Center in Arkansas, which will use advanced manufacturing techniques and robotics to boost capacity.
Initial contract awards tied to the THAAD expansion are expected to be funded in fiscal 2026, the company said.
Lockheed said it has invested more than $7 billion in capacity and infrastructure since President Donald Trump’s first term, including roughly $2 billion aimed specifically at accelerating munitions production. The company plans a multibillion-dollar expansion spanning five US states, with THAAD operations covering more than 340,000 square feet nationwide.
Looking ahead, analysts expect Lockheed’s sales to reach about $77.9 billion in fiscal 2026, according to consensus estimates, supported by defense modernization efforts and rising missile demand.
Shares of Lockheed Martin were up 5.4% in morning trading, outperforming the broader market, as investors looked past near-term earnings volatility and focused on what the company’s growing backlog and production expansion could mean for longer-term growth.