Shares of Lockheed Martin (LMT +2.14%) climbed nearly 7% on Thursday after the aerospace and defense giant said its contract backlog rose to a whopping $292 billion.
The F-35. Image source: Lockheed Martin.
Broad-based gains
Lockheed's sales jumped 11% year over year to $20.7 billion in the third quarter. The defense contractor saw growth in production and sustainment volumes across several of its major platforms, including the F-35 strike fighter, Patriot interceptor missile, and THAAD missile defense system.
LMT Lockheed Martin
NYSE · As of 1:27 PM ET 10/23/26
Lockheed's net earnings, in turn, leaped 14% to $1.8 billion, or $7.97 per share. That surpassed Wall Street's projections, which had called for per-share profits of $7.52.
The aerospace titan also continues to crank out cash. Lockheed generated operating and free cash flow of $3.4 billion and $3 billion, respectively. It passes much of this cash on to its shareholders via a well-funded and steadily growing dividend. Lockheed's shares currently yield a solid 2.4%.
"Our strong third quarter performance underscores Lockheed Martin's continuing leadership in the development and delivery of advanced and reliable defense technology solutions," CEO Jim Taiclet said.
Record backlog
Thanks in part to the superiority of its technology, Lockheed is winning new contracts at an impressive pace. The company's backlog grew to a staggering $292 billion by the end of the third quarter.
The national security leader now expects full-year sales of roughly $81 billion and earnings per share of $30.35 to $30.75 in 2026.
Lockheed also announced a landmark 10-year deal with the Defense Department to expand production of the U.S. military's F-35 fleet.
