Latest news with #Lockheed
Yahoo
an hour ago
- Business
- Yahoo
Defense Earnings Highlight Peril, Payoff of Contracting
These should be the best of times for defense contractors. Last month, NATO members agreed to boost their defense spending target to 5% of GDP by 2035, potentially unleashing hundreds of billions of public-sector dollars into the coffers of military contractors. And earlier this month, President Donald Trump's One Big Beautiful Bill handed the Pentagon a record $1 trillion budget for 2026, a 17% year-over-year increase. But the reality for military suppliers is far more complex. A slew of quarterly reports released last week showed that, even with analysts flashing buy recommendations, all it takes is an overrun on one top-secret program to turn an earnings release into a not-so-secret disappointment. READ ALSO: Trump's 'Biggest Deal Ever' With EU Prompts Yawn From Wall Street and Can Tesla and Samsung Find Salvation in Each Other? The Defense Dilemma Like every other industry, the defense sector has been hindered by inflation in recent years. The distinct disadvantage for contractors is the long-term nature of many of their sales, which were negotiated years ago at lower prices and involve deliveries over extensive periods of time. With no easy fix (you can't shrinkflate an F-35), the Aerospace Industries Association warned last year that defense firms were acting as an inflation 'shock absorber' for the Pentagon, which could ultimately make them less inclined to take on risk. The potential perils of this stress were on full display when America's largest government contractor reported second-quarter performance: Lockheed Martin surprised investors by disclosing $1.6 billion in unexpected charges, most of them ($950 million) related to a classified program with a fixed-price contract signed in 2018. The firm's income fell 80% year over year, from $1.6 billion to $342 million. Lockheed also hacked $1.5 billion off its 2025 operating profit estimate, bringing its forecast down to $6.6 billion, and saw its shares lose 8% through the week. Lockheed was caught in the crosshairs last month when the Pentagon cut an order for F-35s in half, weeks after Boeing won an upset bid over the contractor to replace its F-22 planes. RBC analysts said in a note that Lockheed will need to grow revenue 6.7% in the second half of the year or 'elevated compared to peers' to meet its newly downgraded forecast. About Those Peers: Inflation and price pressures aside, other defense contractors rounded out a solid week. Northrop Grumman raised its annual earnings guidance, citing its Sentinel intercontinental ballistic missile program, which the Pentagon is pouring more money into alongside B-21 stealth bombers. L3Harris, which manufactures rocket motors for Javelin missile systems, beat Wall Street expectations with $5.4 billion in sales. CEO Christopher Kubasik hailed a 'clear inflection point, with our strongest top-line growth in six quarters.' This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. 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
Daily Mail
a day ago
- Business
- Daily Mail
Tech test for defence giants: The nature of warfare is changing - firms must adapt, says ALEX BRUMMER
The US-EU trade deal is far from ideal as the grudging response from France and the markets make clear. Defence stocks on both sides of the Atlantic are seen as beneficiaries with the US's biggest players Lockheed and Raytheon potentially benefiting from $150billion of Brussels procurement. BAE last week trumpeted the potential purchase by Turkey of the Eurofighter Typhoon, which is a vital piece of kit for air forces across the globe, supports 21,000 jobs in Lancashire and contributes £1.4billion to UK exports. The Geelong Treaty, signed between Britain and Australia, will lead to the construction in Barrow-in-Furness and Adelaide of a new class of hunter-killer submarines. It is again positive for BAE, which operates the Royal Navy shipyards, as well as Rolls-Royce, which manufactures the nuclear turbines that power advanced submarines. The shrinkage of defence budgets in the post-Cold War era saw a concentration of defence manufacturing capability in few hands. In Britain, takeovers of UK defence and aerospace groups, including satellite pioneer Inmarsat, has seen the UK's strategic edge blunted. UK sonar detection systems have played a role in protecting Western shipping in the Red Sea from the Iran-supported Houthi rebels in Yemen. This valuable tech has ended up in uncertain hands following the takeover by Cobham – Advent private equity in disguise – in July 2021. Much of the focus as Nato rebuilds its defences and America ratchets up defence spending is on big systems such as carrier fleets, nuclear powered submarines, and advanced fighters. The awesome capability of America's futuristic, Northrop built B-2 stealth bomber was witnessed in precision attacks on Iran's nuclear facilities in June. Conflicts in Ukraine and the Middle East dramatically have shown how the nature of warfare is changing. In much the same way as online interlopers such as Amazon and Microsoft have reshaped the global economy, similar changes are happening in warfare. Elon Musk's Starlink satellites have played a vital role as Ukraine has defended itself from Russian weaponry. Silicon Valley is on the case. Start-up Anduril is the pioneer of the Roadrunner, which costs a fraction of traditional weaponry, and hunts down and kills enemy drones. If it fails first time, it tries again using autonomous tech learning. The Roadrunner may not be capable of targeting Iran's nukes but at $100,000 a piece, it could be a much better use of Pentagon defence spending than the £1.5billion B-2 bomber or the £85million F-35B fighters destined for the UK's refreshed carrier force. BAE, Rolls, Lockheed, Airbus, Northrop et al beware. Fiscal follies The Treasury is brilliant at coming up with new ways to raise income. But it is the job of the Chancellor and her advisors to think through the consequences. Ending the temporary reliefs on the stamp duty paid on house purchases must have seemed a no brainer for saving money. But someone could have mentioned to Rachel Reeves that it might impact government ambitions to build 1.5m new homes in this Parliament and impinge on efforts to encourage young people on to the housing ladder. Latest data from property website Zoopla shows stamp duty has been effective in stemming house price inflation with values rising at just 1.3 per cent. That may seem a good thing but is a poor incentive to housebuilders to put down foundations. As critically, it is seriously hurting first-time buyers who previously paid lower rates of stamp duty and bought cheaper homes. Some 41 per cent are now liable to pay stamp duty against just 19 per cent before April 2025. Yet another budget own goal. Tin hats As someone soon to head off for a family holiday in Cornwall, I am delighted to see that the National Wealth Fund is to support tin mining at South Crofty in the county with a £28.6million investment. Rachel Reeves suggests the reopening of the facility could eventually create 1,300 jobs in the region. It is not quite the high-tech vision of a future Britain expected. Hopefully, 'responsible mining', as described by the Chancellor, could support green transformation. Not if the solar panels are built in China.
Sustainability Times
5 days ago
- Science
- Sustainability Times
'These Lakes Will Power America for Free': Unbelievable Transformation Turns Water into Colossal Energy Giants Fueling Homes Across the U.S.
IN A NUTSHELL ⚡ Lakes are being transformed into colossal power plants, utilizing innovative pumped storage technology. are being transformed into colossal power plants, utilizing innovative pumped storage technology. 🌍 This approach addresses climate-related challenges by storing excess energy and generating power during peak demand. challenges by storing excess energy and generating power during peak demand. 🏞️ Run-of-river plants offer a less invasive alternative, relying on natural flows to produce electricity without large reservoirs. plants offer a less invasive alternative, relying on natural flows to produce electricity without large reservoirs. 🇺🇸 Promising projects in the United States aim to harness the energy potential of the Great Lakes, marking a shift towards sustainable solutions. Imagine a world where our serene lakes transform into bustling powerhouses of energy. This concept, once a figment of futuristic imagination, is now a burgeoning reality. The idea of turning lakes into colossal power plants is not just about tapping into a new energy source; it's about reshaping how we think of natural landscapes and energy production. With batteries being pivotal in our daily lives, from cell phones to electric cars, the potential to revolutionize their power sources stirs both excitement and curiosity. This article delves into the innovative approach of converting lakes into energy generators and its implications for the future. Lakes as Colossal Power Plants For over a century, hydropower has been synonymous with massive dams—engineering marvels that, while providing renewable energy, often disrupt local ecosystems and communities. Recent studies by the Global Energy Monitor highlight an evolution in hydropower projects that promises to mitigate these issues. Enter the concept of 'pumped storage,' an innovative system that utilizes two reservoirs at varying elevations. Excess electricity, often produced by nearby power plants, is used to pump water from a lower to an upper reservoir, effectively storing energy. When energy demand peaks, this stored water is released back downhill through turbines, generating power without the need for traditional dams. This method mirrors battery function, offering a sustainable and less intrusive solution. By using the natural gravitational pull of water, these projects aim to redefine not only how we harness hydropower but also how we integrate it into our landscapes. 'They Built a Cruise Missile for $150K': Lockheed's New CMMT Drones Shock Defense Industry With Unmatched Power and Price The Renaissance of Pumped Storage Although not a novel idea, pumped storage is gaining renewed interest, particularly in regions experiencing rapid wind and solar energy expansion. This approach addresses concerns about climate-related fluctuations in renewable energy production. Some of the largest pumped storage systems can generate enough electricity to power two million homes for an hour. China, a leader in renewable energy growth, has significantly contributed to this resurgence. Its commitment to increasing wind and solar power capacity, despite continuing coal use, underscores a broader strategy to diversify energy sources. While China has ceased funding coal projects abroad, it continues to approve new coal plants domestically. However, these efforts are part of a larger plan to reduce overall energy output by integrating more sustainable options like pumped storage. 'Flying Car Opened Up a Whole New World for Me': Streetwing's Daring Design Ignites the Next Chapter in Pure Personal Exploration Hydroelectric Surprises in the Making Global Energy Monitor data reveals another hydropower technology gaining traction, particularly in mountainous regions like Nepal. Run-of-river hydropower plants, unlike traditional dams, do not create large reservoirs. Instead, they rely on natural river flows to generate electricity, resulting in a less invasive environmental footprint. Without the need for massive reservoirs, these plants are less likely to cause significant ecological damage. They offer a reliable energy source that adapts to seasonal water availability, making them particularly suitable for tectonically active areas. This innovative approach to hydropower, combined with the concept of lake-based batteries, presents a future where energy production and environmental conservation coexist harmoniously. 'This Solar Ship Is the Future of River Travel,' Declares Visionary Engineer as 192 Sun-Powered Panels Drive the World's First Inland Marvel Potential Projects in the United States In the United States, exciting projects are emerging, particularly those exploring the potential of the Great Lakes for hydroelectric power. These initiatives propose building reservoirs at lower altitudes to harness the energy from waterfall flows. Initially gaining traction in 2020, these projects faced delays due to the pandemic but are now poised for a comeback. The idea of transforming the Great Lakes into power plants encapsulates the essence of innovation in energy production. By utilizing existing natural resources, these projects aim to deliver substantial energy outputs while minimizing environmental disruption. Such ambitious endeavors not only promise to enhance the nation's energy landscape but also inspire a global movement towards sustainable power solutions. As we stand on the brink of an energy revolution, the concept of converting lakes into colossal power plants invites us to rethink our relationship with nature. This innovative approach, blending technology with natural resources, holds the promise of a sustainable future. Will these initiatives redefine our energy landscape and propel us towards a greener tomorrow? This article is based on verified sources and supported by editorial technologies. 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Time of India
6 days ago
- Business
- Time of India
Faltering F-35 program compounds Lockheed Martin's woes as company profit drops, share plunges over 18% in one year
Lockheed Martin 's F-35 Lightning II is currently considered as the pinnacle of military aviation. The fifth generation stealth fighter forms the cutting edge of the United States military combat aircraft as well as that of 11 other allied countries. But the American defense and aerospace manufacturer is facing a crisis with the F-35 as its biggest customer, the Pentagon , has scaled down the number of stealth fighters it will buy coupled with apprehension among a section of potential buyers like Canada. A second-quarter profit drop of almost 80% and a pretax loss of $1.6 billion, show Lockheed Martin is flying into troubled weather. Lockheed's stock price has mirrored its financial health, registering a drop of 18.60% in the past one year. The company's stock closed at $419.39 on July 23, 2025, compared to the price of $515.20 on July 24, 2024. The aviation major's second quarter 2025 sales stood at $18.2 billion, just a shade more than the figure of $18.1 billion in the second quarter of 2024. "Net earnings in the second quarter of 2025 were $342 million, or $1.46 per share, including $1.6 billion of program losses and $169 million of other charges. This compares to $1.6 billion, or $6.85 per share, in the second quarter of 2024. Cash from operations was $201 million in the second quarter of 2025, compared to $1.9 billion in the second quarter of 2024. Free cash flow was $(150) million in the second quarter of 2025, compared to $1.5 billion in the second quarter of 2024," the press release by Lockheed stated. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Treatment That Might Help You Against Knee Pain Knee pain | search ads Find Now Undo Admitting that its Aeronautics Classified Program is facing trouble, the company said, "Aeronautics has experienced design, integration, and test challenges, as well as other performance issues on this program. These trends continued into 2025 and had a greater impact on schedule and costs than previously estimated." Its Canadian Maritime Helicopter Program (CMHP) and Türkish Utility Helicopter Program (TUHP) have also been hit by various issues, which the company claims it is trying to resolve. The two programs reported pretax losses of $570 million and $95 million respectively. Subsidiary Sikorsky, which focusses on helicopters, is also facing turbulence. Live Events F-35 program runs into trouble The F-35 program is facing delays with the Block 4 upgrade and the company lost the race to develop the sixth-generation fighter - the F-47 - to its rival Boeing announced by President Donald Trump on March 21, 2024. The Pentagon refused to take any more F-35 jets for much of 2023 and the first half of 2024 after Lockheed failed to integrate new software and hardware. This was due to delay with TR-3, which Lockheed calls the 'backbone' of Block 4 upgrade. The new batch of F-35, albeit with a lesser capability than initially proposed, were delivered to the US military from July 2024. General David Wayne Allvin, the United States Air Force Chief of Staff, has asked Lockheed to fix the issues in the F-35 program before more jets can be ordered and bought. "In the end, because we have limited financial resources, we need to make sure that the F-35s we buy have the capability to meet the pacing threat. So, some of the delays with respect to Block 4 and TR-3 weighed into decisions by the department,' the US Air Force top general told Defence One at the Royal International Air Tattoo in Gloucestershire, England. Lockheed's order book now has 24 F-35s for the U.S. Air Force, down from 48 proposed earlier in 2024. The US Navy also wants less of the F-35, its order is down to 12 from the 17 aircraft while Marines have brought down their order by two fighters. With China deploying its fifth generation fighters - Chengdu J-20 Mighty Dragon and Shenyang J-35, the US is for the first time facing threat to its stealth fighter dominance. Recently, China also revealed that the naval variant of J-35 for its aircraft carriers was also operationally active. To counter the growing Chinese threat, the Pentagon has made it clear that the F-35 Block 4 fight must be fully capable in all aspects including software upgrades, weapons integrations and related sensitive parts, and not depend on upgrades to showcase its potential might. China and tax angle to Lockheed's woes Lockheed Martin is focussed on the military sphere. With the F-35 program slowing down due to the extremely high cost of maintenance and day to day operation, it was betting on getting the sixth-generation deal. But that did not materialize As Trump unleashed the tariff war, China responded with curbs on rare earth metals and minerals hitting the production line of the F-35 fighter aircraft. Lockheed and U.S. tax authorities are also engaged in a fist fight. The tax authorities claim Lockheed's unpaid tax bill stands at $4.6 billion, which the company plans to pursue legally.
Business Wire
6 days ago
- Business
- Business Wire
Securities Fraud Investigation Into Lockheed Martin Corporation (LMT) Announced – Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Lockheed Martin Corporation ('Lockheed' or the 'Company') (NYSE: LMT) investors concerning the Company's possible violations of the federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON LOCKHEED MARTIN CORPORATION (LMT), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. What Happened? On July 22, 2025, Lockheed released its second quarter 2025 financial results, reporting sharply lower second-quarter earnings, including $1.6 billion in program losses. The Company disclosed it was forced to recognize $950 million in losses related to its Aeronautics Classified program due to 'design, integration, and test challenges, as well as other performance issues' as well as 'significant changes to its processes and testing approach.' The Company also reported $570 million in losses on its Canadian Maritime Helicopter Program due in part to providing 'additional mission capabilities, enhanced logistical support, fleet life extension, and revised expectations regarding flight hours.' The Company further reported a $95 million charge related to its Turkish Utility Helicopter Program due to the 'current status of the program.' The Company stated it is in 'ongoing discussion' with its customers regarding a potential 'restructure' of certain contractual terms and conditions. On this news, Lockheed's stock price fell $49.84, or 10.8%, to close at $410.69 per share on July 22, 2025, thereby injuring investors. Contact Us To Participate or Learn More: If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us. Charles Linehan, Esq., Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles California 90067 Email: shareholders@ Telephone: 310-201-9150 (Toll-Free: 888-773-9224) Visit our website at Follow us for updates on LinkedIn, Twitter, or Facebook. Whistleblower Notice Persons with non-public information regarding Lockheed should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email shareholders@ About Glancy Prongay & Murray LLP Glancy Prongay & Murray LLP ('GPM') is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPM has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM's nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM's lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPM's past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron's, Investor's Business Daily, Forbes, and Money. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
