By Utkarsh Shetti and Mike Stone
(Reuters) -U.S. defense contractor Lockheed Martin raised its 2025 forecast for revenue and profit on Tuesday, driven by sustained demand for its fighter jets and munitions amid escalating geopolitical tensions.
Weapons makers are benefiting from surging demand for arms as a result of simmering conflicts in the Middle East and a protracted Russia-Ukraine war.
Lockheed, which makes the F-35 stealth fighters, said its aeronautics segment sales jumped 11.9% to $7.26 billion in the third quarter.
The program secured a long-awaited $12.5 billion contract from the Pentagon last month, for a total of 296 F-35 jets.
Lockheed has also clinched some large agreements recently, including an about $11 billion navy contract to build up to 99 CH-53K King Stallion helicopters, and a nearly $10 billion contract for Patriot missiles.
The commitments underscore a growing need for the U.S. government and its allies to replenish stockpiles and load up on new weapons.
Lockheed, the largest defense contractor in the world, is also vying for a slice of the Trump administration’s $175 billion marquee Golden Dome missile shield, for which the Pentagon began doling out contracts last month.
The company’s total revenue rose 8.8% to $18.61 billion in the third quarter, above analysts’ average estimate of $18.56 billion, per data compiled by LSEG.
Profit per share came in at $6.95, also beating analysts’ expectation of $6.36.
Lockheed now expects a profit of $22.15 to $22.35 per share for 2025, compared with its previous estimate of $21.70 to $22.00.
The company also raised the lower end of its sales outlook to $74.25 billion from $73.75 billion, while maintaining the higher end at $74.75 billion.
(Reporting by Utkarsh Shetti in Bengaluru and Mike Stone in Washington; Editing by Shinjini Ganguli)
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