Lockheed Martin sharpened its 2026 outlook, now projecting adjusted EPS of $30.35 to $30.75 per share, compared with the earlier band of $29.95 to $30.65. The floor now exceeds Bloomberg's analyst average, and traders took note - in New York at 9:48 a.m., the shares were up 7.8%.
The company also reported a record order book of $292 billion, with roughly $53 billion connected to PAC-3 MSE production, signaling a long runway of funded work.
Rising defense outlays worldwide have lifted Lockheed's missile lineup, and the missiles and fire control segment delivered a 24% year over year gain in operating profit. Conflicts in Iran and Ukraine have increased usage of systems such as Patriot in the field, helping drive orders toward the unit.
In July, the company secured a seven year, nearly $54 billion award aimed at almost tripling Patriot output. Separately, in June the Pentagon gave Lockheed a $35 billion award to expand THAAD interceptor production fourfold. Lockheed's Patriot evolution, PAC-3 Edge, was also picked by the US Army to move ahead in the Future Interceptor program. The backdrop includes other large missile production awards going to peers, including RTX Corp.
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Production is stepping up across the portfolio. Chief Operating Officer Frank St. John said output of PAC-3 MSE has been around 80 missiles a month in recent months, putting the line near 1,000 a year and targeting 2,000 annually. THAAD output rose 50% from last year and is projected to climb another 50% next year. "We are already climbing the hill there," he said.
Chief Financial Officer Evan Scott said, "Our investments across the portfolio are now translating into capability, production and deliveries." He added, "What matters to us now is turning that technology and strong demand into increased output and sustained financial performance, and you're seeing that this quarter." Scott said the company anticipates signing contracts next year to speed production for the Precision Strike Missile (PrSM) and the Joint Advanced Tactical Missile (JATM). He also cited new collaborations that are speeding timelines, including with GM Defense, where a first housing component was turned around 22 days after the deal was signed.
The Defense Department's plan to purchase at least 850 more F-35s could become the largest deal in the program's 25-year history, adding another potential growth vector alongside missiles. The through-line for investors: a fuller backlog, rising throughput, and contracts that translate into shipments and earnings.
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