Lockheed lifts annual forecast as missile, jet production ramps up

Oct 22 (Reuters) - Lockheed Martin ( LMT ) raised its full-year sales and profit forecasts on Thursday after posting a rise in ‌third-quarter earnings, helped by strong demand for its missile ‌defense systems and fighter jets due to ongoing geopolitical conflicts.

The company, a key ​supplier of missile-defense systems such as PAC-3 and THAAD interceptors, joined RTX and Northrop Grumman in raising forecasts this week on strong demand for munitions, air-defense systems and military aircraft.

Lockheed now expects 2026 sales ‌of about $80 billion to $82 ⁠billion, up from its prior forecast of $79.75 billion to $81.75 billion.

The US defense contractor also lifted its annual ⁠earnings-per-share forecast to range between $30.35 and $30.75 from its previous view of $29.95 to $30.65.

The company's backlog rose 27% sequentially to a record $292 billion, boosted ​by a $52.5 ​billion multi-year award for PAC-3 ​Missile Segment Enhancement interceptors, stockpiles ‌of which were heavily used by US and allied forces in the Iran war.

Lockheed also raised its 2026 free cash flow forecast to about $7.8 billion to $8 billion, from $7 billion to $7.2 billion earlier.

However, the company warned it remains in negotiations with the US government ‌over production contracts for F-35 Lots ​20 and higher, and said future operations ​and cash flow could ​be affected if additional contractual authorization and funding ‌are not received.

Sales for the quarter ​ended on September ​27 rose 11% to $20.71 billion, driven by 24% growth in its missiles unit on higher PAC-3 and THAAD production and ​a 13% increase ‌in aeronautics revenue from F-35 and C-130 programs.

Profit increased ​14% to $1.85 billion, or $7.97 per share.

(Reporting by Aatreyee Dasgupta ​in Bengaluru; Editing by Leroy Leo)