Lockheed Martin Corporation

I would like to turn the call over to Maria Richard-Own, Vice President, Treasurer and Investor Relations. Please go ahead.

Thank you, Sarah, and good morning. I'd like to welcome everyone to our first quarter 2025 earnings conference call. Joining me today on the call are Jim Taklett, our Chairman, President, and Chief Executive Officer, and Evan Scott, our Chief Financial Officer. Statements made in today's call that are not historical fact are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal securities law. Actual results may differ materially from those projected in the forward-looking statements. Please see today's press release and our SEC filings for a description of some of the factors that may cause actual results to differ materially from those in the forward-looking statements. We have posted charts on our website today that we plan to address during the call to supplement our comments. These charts also include information regarding non-GAAP measures that may be used in today's call. Please access our website at www.lockheedmartin.com and click on the Investor Relations link to view and follow the charts. With that, I will turn the call over to Jim.

Thanks, Maria. Good morning, everyone, and thank you for joining us on our first quarter 2025 earnings call. As you saw in the press release this morning, Lockheed Martin delivered strong all-around performance in the first quarter. continuing the growth momentum we've seen over the last two years. We increased our year-over-year sales 4% in the quarter and generated solid cash that enabled investment of $850 million in independent research and development and capital expenditures. Moreover, we provided a robust shareholder return of $1.5 billion through dividends and share purchases during the quarter. As Evan will discuss in a moment, these results reinforce our confidence in our full-year guidance of mid-single-digit growth in sales, 11% segment operating margin, and double-digit growth in free cash flow for share. Our strong start in Q1 enables us to mitigate or absorb currently known tariff headwinds, as well as the direct program impacts of the next-generation air dominance program decision, and we maintain our original guidance for the full year. With respect to the U.S. defense budget, we continue to operate under a full year continuing resolution that allows for new awards and the transfer of funds across programs. And we are actively engaged with our customers to provide best value solutions for them in this process. We're applying this best value approach also to our customer interactions regarding the 2026 presidential budget request as well. This is especially applicable to the President's high priority launch of the Golden Dome for America. where we are describing how current Lockheed Martin programs that are already at scaled production can contribute immediately to the solution. Our 21st century security strategy, where we integrate existing and new satellites, aircrafts, ships, missile launchers, and command and control systems with constantly upgradable digital technologies, was tailor-made for Golden Dome. In addition to the significant opportunities presented by this project, Our advanced air and missile systems have recently won several large missile program awards in the first quarter already, comprising up to $10 billion in future work. These include substantial contracts for precision strike missiles, or PRISM, terminal high-altitude area defense, or THAAD, and joint air-to-surface standoff missiles and long-range anti-ship missiles. These are among the most sophisticated and effective guided missile systems in the world and are continuously proving themselves in actual combat operations. Lockheed Martin Space also received a modification to their existing contract for next generation of U.S. deterrence at sea. The upgraded missile, often referred to as the Fleet Ballistic Missile, is called the Trident II D-5 Life Extension. Lockheed Martin has provided this critical proven deterrence capability for 70 years, and this award launches the technology refresh that will continue this franchise for decades into the future. Beyond Missiles, our space team recently won a contract on a classified program in which we will demonstrate highly advanced capabilities and the latest cutting-edge technologies available. We've proven these new capabilities on orbit and are ready to produce these vehicles at scale right now. This is another example of our ability to apply the latest technology at a level of reliability that can quickly improve the ability to deter armed conflict and win it if need be. We also received a contract to integrate a system of next-generation infrared sensors on the F-22 Raptor to enhance the aircraft's survivability and lethality. As a former Air Force pilot, I can provide strong assurance that this new capability will further enable the fifth-generation F-22 to shoot down enemy aircraft before they even know that we're there. Equally notable in the quarter, in another example of developing on the leading edge of evolving requirements, was our demonstration of cost-effective countermeasures against drone warfare, complementing our existing systems for integrated air and missile defense by leveraging sophisticated electronic warfare techniques to find and destroy swarms of drones. Our team conducted the first in a series of innovative demos featuring a system designed to detect, track, identify, and defeat a mix of small drones cost-effectively, driving another value-based solution for our customers. In another first-of-its-kind real-world demonstration, our Skunk Works team joined with the Royal Netherlands Air Force to showcase the first-ever live classified data share outside the United States between an F-35 in flight and a Dutch command-and-control system during a multinational military exercise. This is a first and a significant step forward in using digital technology for the integration of ground, air, and naval forces, with the F-35 serving as the quarterback between several allied nations in real time. Speaking of next-generation technologies, I think it's important to highlight that over the past few years, we've pivoted our long-term strategy to transcend any individual program and provide cost-effective solutions by combining our installed base, of highly capable hardware with AI 5G distributed cloud and the like. For example, the air superiority mission is being done today with a host of aircraft and other systems, many of which you all know are made by Lockheed Martin, in a combination needed to defeat even more aggressive and sophisticated adversaries, thereby deterring them from initiating a hostile action. This mission solution orientation that we call 21st century security is designed to extend the life and capabilities of our existing platforms, like the F-16, F-35, and F-22, in an ever-increasing threat environment in a manner that's affordable to the U.S. and its allies, while integrating new platforms, such as NGAT, into the mission fabric over time. Lockheed Martin's broad and deep portfolio is exclusively positioned to make this a reality. Our next-generation air dominance efforts advance many classified technologies that were aligned to this strategy, And we plan on applying those technologies to our current systems, making our already proven products even more relevant to the future, as well as enhancing the capabilities we provide in ongoing and future development. For example, the knowledge and technology development gained from our investments in the NGAD competition strengthened our conviction to enhance the F-35 to a fifth generation plus capability. And I've challenged the team to deliver 80% of 6th Gen capability at 50% of the cost. In support of this vision, we're also committing to drive disruptive innovation and building upon our recent established internal capabilities in AI, autonomy, crew-on-crew teaming, and command-and-control systems across the whole company. We have aligned these technology investments with our customer priorities and demonstrated meaningful increases in capabilities at relatively low cost. We've already shown the networking and teaming ability of the F-35 and the F-22 to control uncrewed vehicle systems like drone wingmen through onboard deployments of our autonomy solutions on real aircraft. Our Skunk Works team has also invented a ground and sea-based drone command station powered by our operational autonomy platform, which is currently in production today for the Navy. As a central data aggregator, Processing and distribution note in this architecture, the F-35 can execute its air combat quarterback role. The global F-35 fleet today stands at more than 1,100 aircraft, with a total fleet expected to be greater than 3,500, enabling the U.S. and its allies to main command of the skies far into the future. To further our strategic vision, my immediate focus, and that of my entire management team, is on operational execution, driving cost competitiveness, quality, and schedule every day. With $173 billion of backlog, more than two years of sales, we're focused on delivering on time and on budget. We're continuing to execute our 1LMX end-to-end business process transformation, which has been underway since 2022. Through this, we've driven increased production of high-demand systems like HIMARS, We accelerated software deployment through our software factory and enabled model-based engineering with digital twins of many of our products. And going forward, we have a deep bench of talent needed to continue this success. And a prime example of that is our new CFO, Evan Scott, joining us today for his first quarterly earnings call in his new role. As a 26-year veteran of Lockheed Martin, Evan knows his business inside and out, and he has a deep appreciation for our customers and their missions. I'm confident that he'll be a great asset to our executive leadership team, and now I'll turn it over to Evan to share more about his background and our financial results.