US Adversaries Russia, Iran and China Are Expanding Their Military Might, and Lockheed Martin Is Ramping Up — CEO Calls for ‘Wartime Speed and Scale’ as Backlog Hits Record $292 Billion

Lockheed Martin Corp. (NYSE:LMT) expects defense spending to remain elevated for years as Russia, Iran and China continue expanding military capabilities, CEO Jim Taiclet said.

Taiclet discussed the company’s outlook on Thursday during Lockheed Martin’s third-quarter 2026 earnings call, emphasizing deterrence, integration and manufacturing scale. He pointed to Russia’s activity in Europe, Iran’s regional ambitions and China’s military expansion throughout the Pacific as factors supporting sustained national defense investment.

“Our product is deterrence. We want to create deterrence from armed conflict,” the CEO said.

He said faster deployment, effective integration and large-scale production are critical to deterrence and conflict, with munitions being the area where the company is advancing its operating model most rapidly.

“Our munitions business is transforming to deliver at wartime speed and scale. That shift now extends beyond interceptors into air dominance,” Taiclet noted.

Lockheed Martin is expanding its workforce and supplier network to meet anticipated demand, awarding new contracts for PAC-3 and THAAD missile production, including $4.7 billion to L3harris Technologies, Inc. (NYSE:LHX) for PAC-3 propulsion, $14.7 billion to Boeing Co. (NYSE:BA) to triple PAC-3 seeker production, and $1.6 billion to Northrop Grumman Corp. (NYSE:NOC) for propulsion and other missile components.

The CEO also described integrated capabilities across platforms and military domains as a competitive advantage, arguing that connected systems can deliver more value than individual ships, aircraft or radars.

Lockheed Raises Outlook as Backlog Hits $292 Billion

The comments followed Lockheed Martin’s third-quarter results, which exceeded expectations and prompted the company to raise its full-year outlook. Lockheed Martin reported quarterly earnings of $7.97 per share, topping the $7.42 analyst consensus and increasing from $6.95 a year earlier.

Sales growth across all four business segments helped drive the performance, while the company’s backlog reached a record $292 billion, reinforcing visibility into future defense revenue.

Lockheed Martin and the U.S. Department of Defense also agreed on a framework for 850 F-35 fighter jets over 10 years, targeting annual production of 156 aircraft. The deal also covers spare parts, upgrades and sustainment, but final pricing and contract awards remain subject to funding, congressional authorization and negotiations.

"This multiyear framework strengthens the way we can plan and invest in the F-35 enterprise," Taiclet said.

Benzinga’s Edge Rankings place Lockheed in the 94th percentile for quality and the 65th percentile for momentum, reflecting its strong performance in both areas. Benzinga’s screener allows you to compare LMT’s performance with its peers.

Price Action: Year-to-date, LMT stock surged 21.97%, as per Benzinga Pro. During Friday’s pre-market trading session, the stock was trading 0.58% lower at $586.50.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock