“Segment operating profit is now expected to be in the range of $6.6 billion to $6.7 billion with an implied midpoint margin of 9%, reflecting the $1.6 billion of program charges.”

In context

“s for Lockheed Martin's 2025 financial outlook to incorporate the impact of several items, including the aforementioned charges this quarter, our current estimation of the tariff impacts, and anticipated tax benefits from the recently passed legislation the One Big Beautiful Bill Act. With a solid year-to-date growth and expectations for continued ramps in the second half of the year, we are reaffirming our sales guidance of $73.75 billion to $74.75 billion. On a related note, we have line of sight to increase backlog in 2025 with a handful of significant awards expected in the second half of the year. Including F-35 lot eighteen nineteen, JASSM LARASM large lot procurement, PAC-3 production, CH-53K multiyear, and classified space, providing a solid foundation for sustained future growth. Segment operating profit is now expected to be in the range of $6.6 billion to $6.7 billion with an implied midpoint margin of 9%, reflecting the $1.6 billion of program charges. We've lowered our earnings per share estimate to a range of $21.70 to $22, incorporating the impacts from the charges impairments, and tax reserve. Turning to cash flow, we are maintaining our previously provided range of $6.6 to $6.8 billion for free cash flow in 2025. There are a few offsetting items worth discussing. First, the Aeronautics Classified program challenges negatively impact cash flow and that, along with the tariff impacts, combine to $500 million of headwind this year. On the other hand, the administration's legislation is anticipated to provide approximately $400 million to $600 million in cash tax benefits, primarily related to R&D capitalization. The 2025 outlook does not include a pension contribution. Before wrapping it up, I'd like to take a moment to look beyond 20”