LMT Stock Jumps 6% In Pre-Market – What’s Driving The Rally?

Lockheed Martin delivered better-than-expected fourth-quarter topline and signed an agreement with the Department of War to expand missile production capacity.

• The company’s Q4 revenue rose 9% to $20.3 billion.
• Lockheed signed an agreement to increase annual THAAD production to 400 units from 96 units.
• The firm’s fighter planes, drones, and helicopters were used in the operation to capture Venezuelan President Nicolas Maduro earlier this year.

Shares of Lockheed Martin (LMT) climbed 6% in pre-market trading on Thursday after the defense contractor delivered better-than-expected fourth-quarter topline and signed an agreement with the Department of War to expand missile production capacity.

LMT shares are on track to open at their highest levels.

Q4 Snapshot

Lockheed Martin posted a 9% rise in fourth-quarter revenue to $20.3 billion, topping Wall Street expectations of about $19.9 billion, according to Fiscal.ai. Net earnings jumped to $1.3 billion, or $5.80 per share, from $527 million, or $2.22 per share, a year earlier, though EPS fell short of estimates of $6.21. The company’s bottom line was weighed down by significant losses tied to classified programs.

The firm’s fighter planes, drones, and helicopters were used in the operation to capture Venezuelan President Nicolas Maduro earlier this year.

“During the U.S. military's recent Operation Absolute Resolve, F-35 and F-22 fighter jets, RQ-170 stealth drones, and Sikorsky Black Hawk helicopters were decisive contributors to enable American soldiers, sailors, marines, and airmen to successfully execute extremely difficult missions and return safely,” said Jim Taiclet, Lockheed’s Chairman, President, and CEO. 

Looking ahead, Lockheed Martin expects momentum to continue in 2026, forecasting around 5% year-over-year sales growth and a sharp 25% increase in operating profit. The company also raised its free cash flow outlook to $6.5 billion - $6.8 billion.

Missile Production Increase

Lockheed Martin also announced an expansion of its missile production capabilities, announcing a framework agreement with the Department of War to increase the output of Terminal High Altitude Area Defense (THAAD) interceptors.

Under the agreement, annual THAAD production is expected to increase from 96 units to as many as 400 units. To support this ramp-up, the company will break ground on a new Munitions Acceleration Center in Camden, Arkansas.

The expanded THAAD production is expected to be phased in over the next seven years, with an initial contract award anticipated after the final fiscal 2026 Congressional appropriations are enacted. The company is also planning multibillion-dollar investments over the next three years to upgrade and expand more than 20 facilities across several states.

How Did Stocktwits Users React?

Despite the premarket gains, retail sentiment on Stocktwits remained in the ‘bearish’ territory over the past 24 hours.

Some users were bullish, observing a breakout.

The stock has gained around 24% so far this year.

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