TTN Summary of 11:00ET Earnings Call: Notes FY26 FCF could be closer to $6B v $6.6-6.8B y/y
Tuesday, July 22, 2025 11:18:03 AMEST
- Second quarter results: $18B of sales, $800M invested in infrastructure & innovation, and $1.3B returned to shareholders.
- Reached a notional agreement to restructure the Turkish Utility Helicopter Program, including scope changes driven by US sanctions, and pursuing contractual revisions for Canada's Maritime Helicopter Program.
- Significant cost revisions on a classified Skunk Works aeronautics program prompted management changes, expert oversight, and a comprehensive risk-correction plan; expect risk reduction over the next few years.
- Real-world confirmation of Lockheed Martin’s combat-proven airpower as F-35 Lightning II and F-22 Raptor demonstrated stealth, EW, and comms capabilities in the Middle East, driving customers to accelerate production scaling and advanced tech development.
- PAC-3 Patriot interceptors achieved a 100% success rate defending US forces from Iranian ballistic missiles at al-Udeid Air Base; THAAD and Aegis layers underscored the scalability of integrated air & missile defense.
- Emphasized embedding more robust risk assessment in future contracts, strengthening program management, and ensuring contract terms align with technological and operational realities.
- No new forward-looking financial guidance disclosed; focus centered on executing the existing backlog, addressing legacy headwinds, and preparing for heightened demand.
- Cash flow faced $500M drag from tariffs and cost overruns
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- Reached a notional agreement to restructure the Turkish Utility Helicopter Program, including scope changes driven by US sanctions, and pursuing contractual revisions for Canada's Maritime Helicopter Program.
- Significant cost revisions on a classified Skunk Works aeronautics program prompted management changes, expert oversight, and a comprehensive risk-correction plan; expect risk reduction over the next few years.
- Real-world confirmation of Lockheed Martin’s combat-proven airpower as F-35 Lightning II and F-22 Raptor demonstrated stealth, EW, and comms capabilities in the Middle East, driving customers to accelerate production scaling and advanced tech development.
- PAC-3 Patriot interceptors achieved a 100% success rate defending US forces from Iranian ballistic missiles at al-Udeid Air Base; THAAD and Aegis layers underscored the scalability of integrated air & missile defense.
- Emphasized embedding more robust risk assessment in future contracts, strengthening program management, and ensuring contract terms align with technological and operational realities.
- No new forward-looking financial guidance disclosed; focus centered on executing the existing backlog, addressing legacy headwinds, and preparing for heightened demand.
- Cash flow faced $500M drag from tariffs and cost overruns