Oct 22, 2026 earnings call — Production ramps and record backlog drive growth
Raised full-year 2026 sales outlook to between $80 billion-$82 billion.
Revenue $20.7B (est $20.5B) · EPS $7.97 (est $7.52) · Next-quarter revenue outlook $81.0B
Key quotes
"Our munitions business is transforming to deliver at wartime speed and scale."
"We are innovating faster with the best technologies available, providing integrated capabilities across every domain to answer a defense sector demand that appears permanent,"
"We ended the quarter with a record backlog of $292 billion, up $113 billion when compared to the third quarter of 2025, and a book-to-bill of 4x."
Analyst Q&A 6
growth drivers and engineering culture
Q (Gavin Parsons · UBS): The analyst asked for more detail on growth outside the missile business and how Lockheed is changing its engineering culture to move faster from concept to capability.
A: Management said multiple divisions show strength beyond missiles, citing radar, space, and F-35 sustainment. They described three engineering changes: mission technology roadmaps, model-based engineering (digital twin/1LMX), and higher R&D to build prototypes ahead of government requests.
"So a mission technology roadmap is a whole different way of thinking about product development and engineering." — Jim Taiclet (CEO·CHAIR)
Vectis and Skunk Works work
Q (Ron Epstein · BofA): The analyst asked what Vectis means for Lockheed and CCAs, and for color on Skunk Works activity.
A: Management said Vectis targets two missions: air dominance and strike, and was developed from their mission roadmaps and customer expectations. They are investing ahead of any RFI/RFP to optimize air combat capability and to make Vectis releasable to allies.
"That is the concept of how we came up with the idea to invest, for us fairly heavily ahead of any RFI or RFP on Vectis, because we think we know what the end game looks like." — Jim Taiclet (CEO·CHAIR)
missile contracting and cash terms
Q (Noah Poponak · Goldman Sachs): The analyst asked how missile ramp contracts handle cash and investment risk, and whether Lockheed expects cash neutrality or advances from customers.
A: Management said they work with the customer to show investments and production resilience so the customer ensures cash neutrality during the investment ramp. They described framework agreements with long terms, annual escalators, cash neutrality protections, and recovery mechanisms if volumes are cut.
"We are not going to enter into these agreements if we cannot get at or better financial outcomes than in the past." — Jim Taiclet (CEO·CHAIR)
F-35 agreement and margins
Q (Sheila Kahyaoglu · Jefferies): The analyst asked how the F-35 agreement will change margins across production, sustainment and development, and about Lot 20 timing and margin impact.
A: Management said the agreement aims to give production and suppliers stability, letting suppliers invest with confidence and letting industry retain margin improvements under a fixed-price escalator. They said F-35 production is accretive to Aeronautics margins and that signing Lot 20 this year would give upside versus current guidance.
"When you look at Lot 20, if we do sign a Lot 20 this year, that would represent upside to effectively all our metrics this year." — Evan Scott (CFO)
2027 cash, pension, and tax effects
Q (Myles Walton · Wolfe): The analyst asked about 2027 moving pieces: revenue, margins, free cash flow, pension contribution, and whether cash tax benefits are one-off.
A: Management said they will give full 2027 guidance in January but see all four segments growing and have line of sight to high single-digit revenue growth next year. They noted a tax benefit that is more than single-year but smaller next year, and a potential pension contribution in excess of $1 billion that they have not yet decided whether to prefund.
"We see clear line of sight to high single-digit revenue growth next year as a company." — Evan Scott (CFO)
durability of revenue beyond 2027
Q (John Godyn · Citi): The analyst asked for a framework to assess whether revenue growth will be durable beyond 2027, not specific guidance.
A: Management said ongoing geopolitical competition and adversary production create sustained national defense demand for many years. They framed Lockheed's role as supporting deterrence and said sustained defense investment will be required to maintain effective deterrence and support the defense industrial base.
"Given the backdrop, the only way I think it's feasible to maintain an effective deterrent is to maintain a strong national defense." — Jim Taiclet (CEO·CHAIR)