Lockheed Martin (NYSE: LMT) has seen its share of setbacks — mostly related to its F-35 program.
However, the company seems to have ironed out the kinks and is now poised to reap the benefits of sky-high defense spending.
Lockheed reported earnings last week and there was a lot to like.
Net income rose 10% from last year to $1.71 billion, or $7.28 per share, handily topping the Wall Street consensus of $6.34 per share.
And total revenue — which totaled $17.96 billion — expanded in every division outside of space.
Two segments in particular drove that growth: missile systems and fighter jets.
I’ve mentioned this before, but the missile business is booming right now.
America has dispatched thousands of missiles to Ukraine and Israel to aid in their respective war efforts.
Now we need to backfill that inventory — even as those conflicts rage on.
Lockheed Martin makes some big ones, too.
New contracts for Precision Strike Missiles, THAAD and JASSM/LRASM, as well as the Trident II D5 Life Extension, added $10 billion to the company’s backlog in the last quarter.
But that’s not all.
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Like I said, the F-35 program also regained traction. That is crucial because the F-35 makes up roughly 30% of Lockheed Martin’s total revenue.
However, sticky technology updates and patches led to troublesome delays in delivery.
Thankfully, though, they seem to have been worked out and the program is back on track.
Lockheed Martin delivered 47 F-35 jets in the first quarter of 2025, which was a little ahead of the guided pace. And the company expects to deliver between 170 and 190 aircraft total this year.
It’s also worth noting that — despite the headaches — the F-35 is still the most capable fighter on the planet. As such, demand for the jet is incredibly high.
The global F-35 fleet has grown to over 1,100 aircraft, and Lockheed Martin aims to produce 156 new units each year through 2027.
So the 3.1% increase in first-quarter aerospace revenue is just the beginning.
And finally, Lockheed Martin also figures to factor in to one of the biggest defense initiatives in American history — the Golden Dome.
The Golden Dome is a cutting-edge, 21st-century missile defense system that will guard against everything from hypersonic missiles to drone swarms.
It’s going to take a lot of partners to pull off — and Lockheed Martin will be chief among them.
Its role could include anything from command-and-control networks to the Sentinel A4 radar, or even the F-35 itself.
In fact, Lockheed was already tapped to design and build the next-gen interceptor for Ground-Based Midcourse Defense (GMD) system, which is meant to intercept ICBMs and other long-range ballistic missiles.
Its TPY-6 radar was also used in a successful test intercept of a ballistic missile from Guam late last year. And its PAC-3 Missile Segment Enhancement has proven effective in Ukraine.
“We are the nation’s leader in integrated air and missile defense and can build the most capable team to help the government make the Golden Dome for America concept a reality,” said Jim Taiclet, Lockheed Martin chairman, president, and CEO.
As that project unfolds, Lockheed Martin stands to pick up more monumental contracts to supplement its current array of growth drivers.
For now, though, the company is leaving its full-year guidance unchanged at a range of $73.8 billion–$74.8 billion.
That suggests that any blowback the company receives from tariffs will be minor as well.
The bottom line: Lockheed Martin is back in business, and it’s a great opportunity for investors to seize.
Of course, if you really want to profit from defense, you should check out my latest report onDonald Trump's AI Victory Plan. It has all the details on the most advanced, cutting-edge defense stocks.
Fight on,
Jason Simpkins
Jason Simpkins is an Editor of Wealth Daily and Investment Director of Secret Stock Files, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor’s page.
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