Lockheed Martin Shares Rise About 6% After Record Backlog and Higher Cash Guidance

what happened

Lockheed Martin stock traded at $585.94 around 11:04 a.m. Eastern on October 22, up roughly 6.24%, after the defense contractor reported stronger third-quarter figures. According to GuruFocus, revenue grew 11% to $20.7 billion and net earnings climbed about 14% to nearly $1.8 billion.

Orders are the bigger headline. Backlog hit a record $292 billion, and $52.5 billion of it is tied to a multiyear PAC-3 interceptor award. Free cash flow came in at $3 billion, down from $3.3 billion a year earlier, yet the company raised its full-year free cash flow forecast to $7.8 to $8 billion.

Reuters reported that a preliminary Pentagon framework would cover at least 850 F-35 jets over a decade, with Lockheed pledging at least $7 billion toward the program. Final contract terms, pricing and timelines are still missing, and the company cautioned that unresolved funding for future output may weigh on operations and cash generation.

why it matters

For investors, the record backlog supports the growth story, but the stock already sits about 2.91% above GF Value's $569.38 estimate, which leaves less room for error. The key question is how quickly the F-35 framework turns into signed contracts and actual cash.

market impact

Defense sector and LMT: strong results and record orders support the shares; F-35 funding remains a risk factor.

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