Latest news with #F35
Telegraph
3 days ago
- Business
- Telegraph
As HMS Prince of Wales cruises the Pacific, it's time to take a look at our Carrier Air
There have been two developments this month that concern the future of Royal Navy carrier-borne aviation, one negative and one positive. The negative one was the National Audit Office's report on the UK's F-35 capability. The second was the positive progress on uncrewed systems to operate from our two aircraft carriers. In the NAO report on the F-35, there are some positives. It's a good jet, 'many times more able to survive and successfully deliver attacks than previous UK aircraft.' It starts looking less positive when current capabilities are compared to various MoD targets. 'Approximately one third of the fleet was available to perform all required missions in 2024'. 'Approximately half were available to perform at least one of seven possible missions'. The current carrier strike group deployment has forced the issues with lack of engineers into the spotlight whilst the lack of global spares was rather embarrassingly exposed during the same deployment by the jet stranded in India recently. The delivery forecast is grim and costs are high. So far we have received 38 jets and spent $11bn, giving a rough figure of £289m per jet. That sounds very shocking, and indeed it is, but we should remember that the RAF's 90-odd flyable Typhoons cost us something like £35bn in today's money to acquire – a nose-bleeding £388m per jet. And they are fourth generation, whereas the F-35 is a modern fifth generation fighter. So it could be worse.
Yahoo
3 days ago
- Business
- Yahoo
1 Magnificent Dividend Stock Down 25% to Buy and Hold Forever
Key Points Lockheed Martin's stock has declined due to concerns over its F-35 program. These concerns appear overstated. The stock offers a strong dividend and double-digit growth at a compelling valuation. 10 stocks we like better than Lockheed Martin › Don't underestimate the value a dividend can bring to your portfolio. Some people think dividend-paying companies are boring. While they aren't always flashy, a dividend is a badge of honor that signals the business is doing so well that it earns more profits than it needs. As a result, the business shares a portion of those earnings with investors. The best companies can consistently increase their dividends, which generally requires continuous growth and success. Yes, that means they tend to make fantastic buy-and-hold stocks. That said, all stocks go through adversity at some point. Famous defense and aerospace leader Lockheed Martin (NYSE: LMT) has tumbled 25% from its all-time high. Here's why investors may want to buy this dip and hold on to this magnificent dividend stock for the long haul. Why has Lockheed Martin declined so much while the broader market pushes to all-time highs? It's generally an eyebrow-raiser when the stock of what many would consider an established company declines significantly while the broader market is doing well. Lockheed Martin, in a way, is a publicly traded extension of the United States military-industrial complex. It's among the world's largest defense contractors, generating the vast majority of its revenue by selling various weapons and defense products used by the U.S. military and its allies on land, at sea, and in space. The stock has lagged behind both the broader market and its defense industry peers in 2025. Investors appear concerned about Lockheed Martin's growth prospects after it lost its bid to build the sixth-generation Next Generation Air Dominance (NGAD) fighter jet to Boeing. Lockheed Martin's fifth-generation fighter jet, the F-35, is its flagship weapon program, but it has been criticized over the years for its numerous delays and massive price tag. The Air Force anticipates Boeing's upcoming jet, dubbed the F-47, could be operational sometime between now and 2029. Don't write Lockheed Martin off just yet The selling pressure on Lockheed Martin may be an overreaction, at least for now. Even though the Air Force anticipates the F-47 taking flight by 2029, that doesn't necessarily mean it will be production-ready. If the F-35's numerous delays and cost overruns prove anything, it's how complex and challenging these machines are to perfect. A lot could change over the next several years, and the F-35 is still critically important in the meantime. Additionally, Lockheed Martin plans to upgrade its F-35 to achieve much of the functionality of a next-generation jet, but at a much lower cost. That could appeal to Washington, D.C. and help preserve a weapon program that the U.S. government has already invested a significant amount of time and money in. Lastly, Lockheed Martin has a diverse portfolio, including satellites and missile systems, that should remain critical to the U.S. and its interests moving forward. The company is also working on a highly classified aeronautics program, which management described as game-changing for the military, and emphasized the importance of successfully fielding it, despite charges that weighed on Lockheed Martin's recent earnings. What Lockheed Martin offers the buy-and-hold investor Lockheed Martin is still a total package with a lot to offer long-term investors. For starters, it has a generous dividend that strikes a balance between growth and income. The stock yields nearly 2.9% at its current share price, and management has raised the dividend for 22 consecutive years, and by an average of 8.8% annually over the past decade. The worries surrounding Lockheed Martin have driven the stock down to just 20 times its trailing 12-month free cash flow, the lowest among its peer defense stocks, and just 14 times the company's guided 2025 cash flow. From an earnings standpoint, analysts still believe Lockheed Martin will achieve 10% to 11% annualized earnings growth over the next three to five years. I'd say Lockheed Martin's stock reflects a lot of negative sentiment at this point, which could mean larger investment returns if things break well for the company over time. Barring any dramatic valuation swings, the stock could deliver 12% to 14% annualized total returns if it simply meets Wall Street's expectations. That seems worthy of a leap of faith for one of the most important companies to America's national security. Should you invest $1,000 in Lockheed Martin right now? 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The Motley Fool has a disclosure policy. 1 Magnificent Dividend Stock Down 25% to Buy and Hold Forever was originally published by The Motley Fool
Yahoo
7 days ago
- Business
- Yahoo
Lockheed Martin Corp (LMT) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $18.2 billion for the second quarter, comparable year-over-year and up sequentially from the first quarter. Sales Growth: Excluding charges, sales increased in the mid-single-digit range. Segment Operating Profit: $570 million, impacted by $1.6 billion in charges related to Skunk Works and Sikorsky. Net Losses: $1.8 billion in total charges across several legacy programs. Earnings Per Share (EPS): $1.46, reduced by $5.83 due to program losses and tax items. Free Cash Flow: Usage of $150 million in the second quarter. Shareholder Returns: $1.3 billion returned through dividends and share repurchases. F-35 Deliveries: 50 aircraft delivered in the quarter, with a total of 97 so far this year. Guidance: 2025 sales guidance reaffirmed at $73.75 billion to $74.75 billion. Backlog: $167 billion, with significant awards expected in the second half of the year. Warning! GuruFocus has detected 2 Warning Signs with LMT. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Lockheed Martin Corp (NYSE:LMT) reported $18 billion in sales for the second quarter, demonstrating strong revenue generation. The company invested $800 million in infrastructure and innovation, indicating a commitment to future growth. Lockheed Martin Corp (NYSE:LMT) returned $1.3 billion to shareholders, showcasing a strong commitment to shareholder value. The F-35 program remains on track with 97 deliveries so far this year, highlighting operational efficiency. Lockheed Martin Corp (NYSE:LMT) demonstrated the effectiveness of its systems in recent combat operations, reinforcing its role in national security. Negative Points Lockheed Martin Corp (NYSE:LMT) recognized $1.8 billion in losses across several legacy programs, impacting financial performance. The company faced significant charges related to the Aeronautics Classified Program and other legacy programs, indicating ongoing challenges. US government sanctions affected the Turkish Utility Helicopter Program, resulting in a $95 million loss. The Canadian Maritime Helicopter Program incurred a $570 million loss due to revised cost and sales estimates. The IRS asserts that Lockheed Martin Corp (NYSE:LMT) owes $4.6 billion in additional income tax, creating potential financial uncertainty. Q & A Highlights Q: Why should investors feel comfortable that Lockheed Martin has derisked the problem programs, particularly the Aero Classified one? What changes have been made? A: James Taiclet, CEO, explained that with Evan Scott's succession as CFO, a new program review team was formed with wider expertise and higher-level management scrutiny. This team reassessed cost trends and reevaluated program assumptions, leading to additional charges. The programs will continue to be monitored with robust oversight, and there is a policy in place to avoid must-win programs, ensuring no outsized future risks. Q: Why did it take a billion dollars of charges to change the way you're reviewing the Aero Classified program? How does the $1.8 billion in charges affect cash flow? A: James Taiclet noted that the charges were due to new discoveries of cost risks and anomalies in the development phase. Evan Scott added that $500 million of cash usage is expected this year, stepping down to $400 million next year, with a line of sight to when it turns positive. Q: Can you explain the reduction in the F-35 units in the administration's FY26 request and how easy it is to swap out relinquished DoD slots with export customers? A: James Taiclet stated that the House Appropriations Committee increased the number of F-35s from 47 to 69, and the Senate marked it up to 57. Historically, appropriations committees have the final say, and there is hope for greater demand by the end of the budget process. Evan Scott added that the backlog remains strong, allowing flexibility in production planning. Q: What is the $4.6 billion tax liability related to, and how will it impact free cash flow? A: Evan Scott explained that the IRS's position on a tax accounting method change is being contested, with Lockheed Martin standing by its approach. A $100 million P&L charge was taken for interest. For 2026, a $1 billion pension contribution is assumed, with various factors impacting cash flow, including reach-forward charges and tax benefits. Q: Can you discuss the F-35's role in modern warfare and its priority for the DoD today? A: James Taiclet emphasized the F-35's critical role in modern warfare, citing its orchestration capabilities and combat-proven status. Despite budget cuts, the F-35 remains essential, and Lockheed Martin is focused on bridging capabilities to the next generation while maintaining strong international demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Automotive
- Yahoo
Reworked F-35 Pitched As ‘Bridging Fighter' Ahead Of F-47
Taiclet then moved on to the company's proposal to provide the F-35 with a range of potential modifications to create what was previously referred to as a 'Ferrari' or 'NASCAR upgrade' to the F-35's core 'chassis.' The company is now increasingly describing this initiative as a 'fifth-generation-plus' development of the basic F-35. As to what comes next for the F-35, Taiclet said he was 'very, very confident that the F-35 is here to stay and here to stay for a long time,' recalling that fact that it is the 'only fifth-generation fighter aircraft in production today in the free world.' Taiclet noted that, as well as air-to-ground, the F-35 has, in recent campaigns in the Middle East, excelled in terms of its 'orchestration of numerous other platforms.' Those other platforms have included assets at sea, in space, as well as other aircraft, including fourth-generation ones. Talking about the F-35, Taiclet pointed to the aircraft's success in the U.S. attacks on nuclear facilities in Iran last month, Operation Midnight Hammer . The CEO describes that particular mission as being 'led by the F-22 and F-35.' Between them, the stealth fighters 'provided the air dominance and defense suppression required for the bombers to reach Iran's hardened nuclear sites,' Taiclet said. 'Our platforms operated essentially undetected in highly defended and contested airspace, underscoring the value of advanced stealth, superior electronic warfare, and broadband communications capability.' In the second quarter, Lockheed Martin delivered 50 F-35s, bringing the company's total deliveries for the year to 97. More significantly, the manufacturer has now handed over 207 F-35s since it resumed deliveries last year , having paused them for around a year due to problems with the vital Tech Refresh 3 suite, or TR-3. The company says it is now on track to deliver between 170 and 190 F-35s this year. These details and more were provided in a second-quarter earnings call earlier today that involved Taiclet as well as Lockheed Martin Chief Financial Officer Evan Scott, and Maria Ricciardone, the company's Vice-President, Treasurer and Investor Relations. Lockheed Martin envisages its F-35 stealth jet as the 'bridging fighter' that will allow the U.S. Air Force to transition to the sixth-generation F-47, from rival Boeing. Speaking today, Lockheed Martin CEO Jim Taiclet reiterated the goal of inserting technologies developed under the company's unsuccessful Next Generation Air Dominance (NGAD) bid into a future version of the F-35. At the same time, the company discussed 'a highly classified program' in the aeronautical sector on which it admits it has so far suffered significant financial losses. La historia continúa 'We did bid on NGAD, and we weren't selected,' Taiclet reflected, referring to Lockheed Martin's loss to Boeing, which is now building the F-47 crewed sixth-generation fighter to meet that requirement. An artist rendering of Boeing's F-47. U.S. Air Force 'But the pivot that we made is one we're taking very seriously, which is how we create a bridge from today's fifth generation to the sixth-generation NGAD, which might not be fielded for a lot of years,' Taiclet said. 'How do we bridge capability there?' Taiclet continued. 'We're going to port a lot of our own NGAD R&D over to the F-35 and potentially over to the F-22 as well.' The CEO again stated the aspiration to develop modifications to the F-35 that mean the company can offer 80 percent of the effectiveness of a sixth-generation fighter, at 50 percent of the cost per unit. Taiclet added that, in terms of matching capabilities, the 80 percent figure also referred to the degree of stealth, as well as 'other aspects.' The fifth-generation-plus version of the F-35 is, Taiclet contended, 'the best-value option for the U.S. government going forward; it will be only one I'm aware of that will make that bridge, for maybe 10 years.' Not immediately clear is whether Taiclet expects a major delay on the F-47 program that will make an interim fighter a more urgent priority, although that would be one interpretation of this. As it stands, the Air Force has not said when it expects the F-47 to achieve initial operating capability. An Air Force graphic that states the F-47 would become operational between 2025 and 2029 very likely refers to the planned first flight of the F-47 and some of its developmental testing, as you can read about here. U.S. Air Force Although not discussed today in the course of the earnings call, in the past, Lockheed Martin has raised the possibility of a pilot-optional F-35, as well as new infrared and radar coatings. This latter modification corresponds with secretive U.S. military testing in recent years of new mirror-like coatings on F-35s, as well as F-22 Raptor and F-117 Nighthawk stealth jets. A U.S. Navy F-35C test jet with a mirror-like coating. U.S. Navy Other F-35 modifications discussed by the company include electronic warfare improvements, networking improvements, and autonomy. Lockheed Martin has also previously discussed potential changes to the F-35's outer mold line, especially with regard to the engine inlets and exhaust nozzle. Meanwhile, the feasibility of the fifth-generation-plus proposal, as well as the huge claims around the capability/cost match of such an aircraft compared to a sixth-generation design, remains very much open to question. However, the company is confident that such advances are not only possible but can also be achieved rapidly, if required. Earlier this year, Taiclet said he thought that, in the space of two to three years, it would be possible to port enough of the NGAD technologies over into the F-35 to provide 'a meaningful increase in capability for the F-35.' That two-to-three-year timeline related to 'first flight and integration,' Taiclet added. A U.S. Air Force KC-135 Stratotanker refuels a U.S. Air Force F-35A off the coast of Greece in October 2024. U.S. Air Force photo by Senior Airman Edgar Grimaldo Senior Airman Edgar Grimaldo It's also worth noting that, earlier this year, U.S. President Donald Trump mentioned the so-called F-55, a purported development of the F-35. Trump described the F-55 as a twin-engined F-35 and also discussed an 'F-22 Super' that would be an upgraded version of the Raptor. The exact status of the F-55 remains unclear, if it ever existed. Taiclet also discussed a separate 'highly classified' aeronautical program being run by Lockheed Martin Skunk Works, as a part of that division's efforts to 'push the boundaries of science and technology to deliver highly advanced solutions that provide our customers a step-function advantage over potential adversaries.' It's notable that such a project would even be mentioned, although its discussion within the context of the earnings call was limited to the losses that it has accumulated for the company. There was no indication whether the platform is crewed or uncrewed, or what kind of mission it will fulfil, although there have been other reports of secretive Skunk Works projects going over budget. F-35s under construction. Lockheed Martin 'This particular program discovered new insights in the quarter that required us to adjust our expected future costs on that program and then recognized the charge for doing so,' Taiclet added. 'I acknowledge the losses on this classified program are significant. Again, we are taking these charges very seriously.' In response to the losses, Lockheed Martin has made changes to the program team management and assigned experts across the company to improve the performance and oversight of this program under what Taiclet said was 'a comprehensive risk-identification and corrective action plan.' 'This is a highly classified program that can only be described as a game-changing capability for our joint U.S. and international customers,' Taiclet added, 'and therefore it is critical that it be successfully fielded.' With the classified program now at least being publicly acknowledged for the benefit of company shareholders, it's possible that more information about it might begin to emerge. Clearly, however, Lockheed Martin's efforts to develop advanced new aerospace technologies encompass programs above and beyond its ongoing efforts to rework the F-35. Contact the author: thomas@
Bloomberg
22-07-2025
- Business
- Bloomberg
Stock Movers: Texas Instruments, GM, Lockheed Martin
On this episode of Stock Movers: Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec. - Texas Instruments (TXI), a key chipmaker for producers of cars and factory equipment, declined in late trading after giving a revenue forecast that fell short of the most bullish estimates. Revenue will be $4.45 billion to $4.8 billion in the third quarter, the company said in a statement Tuesday. Though the average analyst estimate was $4.57 billion, some projections reached $4.8 billion. Profit in the period will be roughly $1.48, the company said, slightly below the average estimate. The outlook raises concern that a resurgence in spending, particularly among automotive and industrial customers, isn't arriving as quickly as hoped. Many buyers had been holding off on orders while they worked through a stockpile of existing inventory. Texas Instruments also said that its forecast 'does not include changes related to recently enacted US tax legislation.' Capital spending, meanwhile, grew more than expected last quarter. - Lockheed Martin (LMT) shares dropped after it caught investors off guard with $1.6 billion in charges and a possible tax hit that sent its stock tumbling, the latest setback for the defense giant whose popular F-35 jet faces criticism over cost overruns and delays. The company's shares plunged more than 9% on Tuesday - the biggest drop since January - after the world's largest defense contractor reported earnings that missed analyst estimates and lowered its outlook for the year. At issue, the company said, were program losses that included a classified aeronautics program, and separate helicopter development efforts for the Canadian and Turkish governments. It also flagged $169 million of charges related to losing out on the US Air Force's F-47 fighter jet contract that went to Boeing Co., and other newly identified risks. Lockheed also cautioned it faces a potential $4.6 billion in additional taxes owed after an accounting change, although it is contesting the matter with the Internal Revenue Service. - GM (GM) shares slid after it said it suffered a $1.1 billion profit hit from Donald Trump's tariffs and revealed no plan for a near-term fix to return to pre-tariff profit levels. The Detroit-based automaker said Tuesday it earned $2.53 per share on an adjusted basis, above the Bloomberg consensus forecast of $2.33 but short of the $3.06 it made a year ago. GM's profits also suffered from higher warranty costs and a buildup in inventory of electric vehicles, which are set to lose federal subsidies under Trump's recently passed budget bill. GM's results showcase the difficulty automakers face to maintain profits in an environment that newly penalizes globally integrated parts supply chains and cross-border vehicle sales. Even though the automaker beat profit expectations, earnings in its all-important US business suffered from import duties on vehicles made in China, Mexico and South Korea.
