Shares of Lockheed Martin (LMT +4.23%) rose on Thursday after the national security titan issued a bullish growth forecast and announced an expanded production agreement with the U.S. military.
By the close of trading, Lockheed's stock price was up more than 4%.
The Terminal High Altitude Area Defense (THAAD) system. Image source: Lockheed Martin.
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Lockheed's sales grew 9% to $20.3 billion in the fourth quarter. The gains were broad-based. Revenue in the defense contractor's missiles and fire control, rotary and mission systems, space, and aeronautics divisions increased 18%, 8%, 8%, and 6%, respectively.
"This escalating demand for our signature programs and systems has been driven by combat-proven performance over recent years that has already been again demonstrated in 2026," CEO Jim Taiclet said in a press release.
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Taiclet noted that several of Lockheed's weapons systems -- including F-35 fighter jets, RQ-170 stealth drones, and Sikorsky Black Hawk helicopters -- played key roles in the U.S. military's recent operations in Venezuela.
The U.S. government, in turn, wants Lockheed to expand its manufacturing capabilities. The U.S. military reached an agreement with the defense giant on Tuesday, under which Lockheed will ramp up production of Terminal High Altitude Area Defense (THAAD) interceptor missiles from 96 to 400 interceptors per year.
Demand for Lockheed's offerings continues to grow
Looking ahead to 2026, Lockheed expects its sales to rise by roughly 5% from the $75 billion it earned in 2025. Management also forecast full-year free cash flow of $6.5 billion to $6.8 billion.
"We will continue to deliver superior, reliable capabilities to U.S. and allied militaries to strengthen deterrence and provide overwhelming combat advantage, while providing strong results and value to our shareholders," Taiclet said.
