Lockheed Martin Corp. (Lockheed Martin (LMT)) reported stronger-than-expected second-quarter results on Thursday, driven by higher sales and earnings, and ended the quarter with a record backlog of $230 billion.

The backlog, the largest in the company's history, increased by about $64 billion from a year earlier. During the quarter, Lockheed secured several major defense awards, including a $35 billion Terminal High Altitude Area Defense (THAAD) interceptor contract and a $3 billion Guided Multiple Launch Rocket System (GMLRS) contract.

Earnings Beat Expectations

The defense contractor reported GAAP diluted earnings of $7.94 per share, beating the analyst consensus estimate of $7.09.

Revenue rose 11% year over year to $20.06 billion, topping Wall Street estimates of $19.34 billion.

Operationally, the company resumed F-16 deliveries, increased C-130 production and advanced development of its Grizzly counter-unmanned aerial system. Management also said it continued investing in advanced manufacturing, artificial intelligence and strategic partnerships to improve efficiency and support long-term growth.

Lockheed Martin Raises Full-Year Guidance

Lockheed Martin said its record $230.4 billion backlog provides strong visibility into future growth after securing $65 billion in new orders during the second quarter, including a multiyear THAAD interceptor contract, new radar awards and strategic Space wins.

The company posted a book-to-bill ratio of 3.2-to-1 and said the expanding order book has already begun translating into stronger financial performance, with second-quarter sales rising 11% year over year to $20.1 billion. Management said the deep backlog is expected to support sales growth for years to come.

Lockheed raised its full-year GAAP earnings forecast to $29.95 to $30.65 per share, up from its prior outlook of $29.35 to $30.25 per share. The new range is above the analyst consensus estimate of $29.86.

The company also increased its 2026 sales outlook to $79.75 billion to $81.75 billion from $77.5 billion to $80.0 billion. The updated forecast exceeds the Street estimate of $79.14 billion.

Segment Outlook

Lockheed expects its Aeronautics business to generate fiscal 2026 sales of $31.7 billion to $32.7 billion. Management projects operating profit of $3.0 billion to $3.08 billion. The company expects mid-single-digit sales growth in the second half, driven by higher F-35 production and sustainment activity.

Lockheed forecasts Missiles and Fire Control sales of $16.5 billion to $16.9 billion. The business expects to generate operating profit of $2.3 billion to $2.35 billion. Management said growth should accelerate in the second half as munitions production expands.

For Rotary and Mission Systems, Lockheed projects sales of $17.7 billion to $18.1 billion. Management expects operating profit to range from $1.86 billion to $1.89 billion. The company expects stronger second-half growth, supported by radar programs and higher Sikorsky production.

Lockheed also raised its Space segment sales outlook to $13.85 billion to $14.05 billion. Management expects the business to deliver stronger growth in the second half, driven by the Next Generation Interceptor, Fleet Ballistic Missile programs and classified national security initiatives.

LMT Price Action: Lockheed Martin shares were flat at $568.60 during premarket trading on Friday. The stock closed up 10.54% in the previous session.