Defense Giant Lockheed Martin Faces Mounting Investor Pressure

Lockheed Martin finds itself navigating turbulent financial waters. The American defense contractor is confronting a severe profitability crisis, despite maintaining stable revenue streams. A combination of multi-billion dollar special charges and persistent operational challenges within its flagship F-35 program are driving the downturn. Investors are now questioning whether the company’s robust dividend payments and substantial order backlog can provide sufficient stability.

The company’s second-quarter 2025 financial performance laid bare the extent of its difficulties. Revenue held steady at $18.2 billion, but net income experienced a dramatic collapse, plummeting to just $342 million. This represents a stark contrast to the $1.6 billion profit recorded during the same period last year.

Key factors behind the profit contraction include:
* Pre-tax program-specific... Read more...