Aeronautics sales increased 2% to $7.4 billion, driven by F-35 production but offset by classified program losses.
Free cash flow was negative $150 million in Q2, impacted by timing issues including delayed F-35 contract awards and tariffs.
GAAP EPS was $1.46, reduced by $5.83 due to program losses, impairments, and tax reserves.
Lockheed Martin reported $18.2 billion in sales for Q2 2025, comparable year-over-year and up sequentially from Q1.
Missiles and Fire Control sales grew 11% to $3.4 billion with a 6% increase in operating profit.
Rotary and Mission Systems sales declined 12% due to program losses and lower volumes in Seahawk and Canadian Surface Combatant programs.
Segment operating profit was $570 million, down significantly due to $1.6 billion in operational charges primarily from Skunk Works and Sikorsky programs.
Space sales increased 4% with a 5% rise in operating profit, driven by commercial civil space and strategic missile programs.
The company recognized $1.8 billion in losses related to legacy programs and a tax matter, impacting segment operating profit and EPS.
The company returned $1.3 billion to shareholders through dividends and share repurchases.
Adjusted earnings per share were $2.77, driven by strong productivity, restructuring actions, favorable FX impact, and lower interest expense, offset by higher input costs and plant shutdowns.
Adjusted operating income: Global Ceramic $90 million (8.1%), Flooring North America $69 million (7.3%), Flooring Rest of the World $76 million (10.4%).
Capital expenditures were $80 million in Q2 with planned investments reduced to approximately $500 million for 2025.
Cash and cash equivalents were $547 million with free cash flow of $126 million; share repurchases of approximately $42 million completed with a new $500 million authorization.
Gross margin was 25.5% as reported and 26.4% excluding charges, down approximately 70 basis points due to higher input costs, lower sales volume, and increased shutdown costs, partially offset by productivity gains and favorable FX.
Interest expense decreased to $5 million due to lower debt balance and interest income benefits.
Inventories increased by $130 million primarily due to FX and imported inventory from new tariffs.
Net sales for the second quarter were $2.8 billion, essentially flat as reported and on a constant basis.
Non-GAAP tax rate for Q2 was 19.3%, down from 20.9% prior year, with Q3 and full year tax rate forecasted at approximately 19%.
Nonrecurring restructuring charges of $34 million expected to deliver $100 million in annual cost savings in 2025.
Operating income on an adjusted basis was $223 million or 8% of sales, a decrease of approximately 120 basis points due to increased input costs, lower sales volume, and higher shutdown costs, partially offset by productivity and FX benefits.
Segment sales: Global Ceramic sales just over $1.1 billion (up 0.5% reported, 1.1% constant), Flooring North America sales $947 million (down 1.2%), Flooring Rest of the World sales $734 million (up 1% reported, down 3% constant).
Backlog totaled just under $11.5 billion, up $100 million sequentially, with MSA backlog increasing by over $600 million.
Energy segment gross profit increased 9.4% to $134.2 million, but margins declined to 10.8% from 12.6% due to fewer project closeouts and weather impacts on renewables.
Gross profit increased 24.1% to $231.7 million with gross margins improving to 12.3% from 11.9% the prior year.
Net income increased approximately 70% to $84.3 million or $1.54 per diluted share; adjusted EPS rose over 60% to $1.68; adjusted EBITDA grew over 30% to $154.8 million.
Net interest expense decreased by $9.6 million to $7.6 million due to lower debt and interest rates.
Operating cash flow for Q2 was a record $78 million, with year-to-date cash flow nearly $145 million, a $157 million improvement over prior year.
Primoris reported record Q2 2025 results with revenue just under $1.9 billion, up 20.9% year-over-year, driven by double-digit growth in both Energy and Utilities segments.
SG&A expenses rose modestly by $4.4 million to $104.5 million, representing 5.5% of revenue, showing improved operating leverage.
Strong liquidity position with $690 million available, including $390 million cash and $300 million revolver capacity; net debt-to-EBITDA ratio improved to 0.5x.
Utilities segment gross profit rose 52.3% to $97.5 million with margins expanding to 14.1% from 10.3%, led by power delivery improvements.
Dafinchi