Lockheed Martin Corporation

Good day and welcome everyone to the Lockheed Martin third quarter 2026 earnings results conference call. Today's call is being recorded. If you would like to ask a question, please press star then one now. At this time for opening remarks and introductions, I would like to turn the call over to Mark Kvasnak, Vice President, Investor Relations. Please go ahead.

Thank you, Sarah, and good morning. I'd like to welcome everyone to our third quarter 2026 earnings conference call. Joining me today on the call are Jim Taiclet, our chairman, president, and chief executive officer, and Evan Scott, our chief financial officer. Statements made today that are not historical fact are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal security laws. Actual results may differ materially from those projected in the forward-looking statements. Please see Lockie Martin's 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've posted slides on our website today that we plan to address during the call to supplement our comments. These slides also include information regarding non-GAAP measures that may be used in today's call. Please access our website at www.lockiemartin.com and click on the investor relations link to view and follow the slides and see definitions and reconciliations for non-GAAP measures. With that, I'll turn the call over to Jim.

Thank you, Mark. Good morning, everyone. Lockheed Martin delivered another quarter of strong program performance, growing both sales and profit by double digits, reflecting execution to the plan that we previously laid out for you. We generated $3 billion of free cash flow in the quarter, and drew our backlog to another record, $292 billion. The momentum in our business is accelerating, giving us confidence to raise our full year expectations for sales, earnings and cash again this quarter. Evan will cover the specifics shortly. These results are a product of the investments we made in recent years that are now delivering across our entire portfolio, from autonomous aircraft and next generation air dominance to Homeland Missile Defense, Hypersonics, and the command and control that connects it all. We are innovating faster with the best technologies available, providing integrated capabilities across every domain to answer a defense sector demand that appears permanent, resulting in a business that is resilient through any budget cycle. Munitions are a major part of that story, but they're far from the only engine of our growth. Thank you for joining us. This landmark agreement also enables sustainment and future development to be more effective and efficient for our customers. Staying ahead of the threat has always been our mission, and today we're doing it faster than ever. Over the last couple of quarters, I've explained how we are transforming Lockheed Martin, and this quarter proved it again as our increased speed of innovation showed up in every part of our business. At Skunk Works, the Vectis team went from first drawing to wind tunnel testing, and under two months, release the first production part in eight months and have flight demonstrations scheduled for next year. This progress gave me confidence to green light an increase and now we will build five Vectis aircraft with our own investment. That puts us in position to offer a proven, production-ready, autonomous aircraft as our customers define their future requirements. At MFC, our Precision Strike Missile Increment II went from flight tests in March and August to a $1.2 billion production contract within the same year. That compresses what has traditionally been a multi-year path from testing to production, getting a new maritime strike capability to the Army sooner and allowing the value of our development work to be realized years earlier than normal. This production award further builds on the Department of War's broader investment in quadrupling PRISM production. Our space team recently completed a key solid rocket motor test for the Next Generation Interceptor program, keeping that program on track for fielding by 2030, strengthening the homeland missile defense and advancing a program essential to the nature's future. And at RIMPAC, an exercise in the Pacific, our RMS team and sail drone went from concept to a live-fire missile launch from an unmanned surface vessel in less than six months. putting proven weapons on a commercial autonomous platform and extending Lockheed Martin's capability onto an entirely new class of systems. This commercial mindset throughout our company is changing how we build as well. Partnerships are becoming a key part of how we move faster and we are extending them all through our supply chain and beyond. GM Defense, for example, delivered its first PAC-3 components to us and under one month from the initial contract. That adds capacity at a terrific supplier at a pace our traditional supply base couldn't match on its own and then helping us deliver more interceptors sooner without an increase in our own capital investment. And just last week, we announced the expansion of our Grand Prairie, Texas manufacturing footprint to more than 735,000 square feet. The expansion includes additional capability and capacity for automation and digital manufacturing and will also bring on board a Hadrian highly automated production machine cell to supply components across our missile programs in a manufacturing as a service contract. The discipline that gives capability to our customers faster also strengthens our business. When we shorten the path from development to production, we accelerate the economic return on that work. When we invest ahead of requirements, we enter competitions for the next generation of programs already well positioned. And when we partner with commercial manufacturers and tech companies, we scale in a way that keeps our investment efficient as demand grows. Delivering programs faster is only part of the equation. The greater value comes from how these capabilities work together. Our platforms are central to Lockheed Martin, but they also form a foundation for the broader role we play. One that may be unmatched in the world, and that is driving interoperability and integration across platforms and domains to give our customers an advantage no single platform can provide on its own. This role builds on decades of mission integration experience, connecting aircraft, missiles, earth and space-based sensors, and command and control into theater-level deterrence across land, sea, air, space, and cyber. It is a very deliberate plan and the mission technology roadmaps we established several years ago and continue to evolve guide our development ahead of formal requests for proposals. We just don't wait for them anymore. We're not just building product before customers ask for it. We work alongside them to understand where their missions are headed so that we are ready with complete, proven solutions when they need them. Part of that is recognizing that our customers don't need to choose between exquisite platforms and affordable masks, they need both integrated. So each makes the other one more effective. We can bring them together in a way few others can. Some examples. At Valiant Shield, our RMS team used our software-driven command and control system powered by Command IQ and connecting long-range missiles, integrated air and missile defense, and remote targeting. drawing on commercial sector data and using AI to recommend specific target engagements. The RMS team is building on that work in Guam, where we developed an AI-enabled battle management prototype for the Guam defense system. And we were selected by the Missile Defense Agency to move its missile defense modeling and simulation to the cloud. In Australia, we were awarded an $800 million contract for the next tranche of Air 6500, which is its joint air battle management system, demonstrating that our integration expertise is in demand from our allies as well. This is what it means to be the premier defense technology company, delivering proven platforms that work alongside autonomous systems enabled by AI and the best commercial technologies available. Lockheed Martin's depth of experience innovating and integrating these capabilities sets us apart. gets capability into the field sooner and integration makes it much more effective. But deterrence from conflict also depends on having it at scale. Nowhere do these demands converge more than in munitions, and that is where our operating model is actually moving the fastest. Our munitions business is transforming to deliver at wartime speed and scale. That shift now extends beyond interceptors into air dominance. This quarter, we signed a framework agreement with the Department of War to accelerate production of the Joint Advanced Tactical Missile, our next-generation air dominance missile. Known as JADM, this is the product of years of collaboration with the Air Force and the Navy and the kind of long-term commitment that takes time to show its full value and enables us to further accelerate production ahead of a multi-year contract, so there's no delay when the contract is signed. Australia has already committed to become this program's first international customer, an early sign of demand that broadens the program's long-term opportunity and strengthens the case for the capacity we are building today. Our interceptor franchises are scaling just as quickly. This quarter we signed a seven-year contract for PAC-3, building on the seven-year THAAD contract signed earlier this year. Together, these awards give us and our suppliers the kind of long-term visibility that makes bold investment possible, and we are putting it to work. Adding 2 million square feet, again, 2 million square feet of facilities to support production growth across eight sites over the next three years, and these are in places like our Munition Center in Troy, Alabama. More than half of those additions are already underway and under construction. Just as important is the workforce to match. This year alone, we are hiring and training over 3,000 new team members across MSC's sites. That's not happening by chance. Well before this ramp-up began, we started building partnerships with local communities, technical schools, and colleges to develop the skilled talent pipeline we knew we would need. Those relationships are now helping us bring people on faster and preparing them to contribute from day one. These are skilled roles and good jobs, and they reflect the confidence that we have in the demand ahead. Scaling production also means our suppliers need to move at the same pace. This quarter, we placed new supplier contracts for both PAC-3 and THAAD, including a $4.7 billion supply contract with L3 Harris for PAC-3 propulsion. Since the quarter closed, we also awarded Boeing a contract for $14.7 billion the triple PAC-3 seeker production, and a $1.6 billion contract to Northrop Grumman for propulsion and other missile components. Beyond our largest partners, we are working with a much broader base. Nearly 750 suppliers across 42 states support that alone, and we meet with our key suppliers regularly to keep the focus on their performance. That collaboration produces real results. Together with our suppliers, we are resolving long-standing production bottlenecks that will enable substantially higher deliveries going forward. All of this is part of more than the $8 billion investment we are making through 2030 to modernize more than 20 facilities, expand our supply chain, and grow our workforce. It is one of the largest commitments to munitions production in our history, and it is designed to sustain this production pace for years to come. and we are ahead of schedule in this expansion as our MFC segment results demonstrate. The awards we win today do more than fill our production lines. They give us stability and resources to keep investing in what follows and the next generation of capabilities that are already taking shape. So across every domain we are turning years of research and development investment into products that are ready for the field. In air and missile defense, we are extending the PAC-3 franchise to meet both the most common and the most advanced threats. So our new PAC-3 ACE will bring a high-performance, lower-crossed interceptor for cruise missiles and short-range ballistic missiles. And on the other end of the spectrum, just last week, we unveiled PAC-3 EDGE, our offering for the Army's future interceptor program, which we have now been advanced to the next stage of development for. Build on the combat-proven PAC-3 MSE, the EDGE pairs a new seeker from our key component center of excellence at RMS, made in Lockheed Martin, with a multi-pulse motor to defeat hypersonic and other advanced threats at a greater range and higher altitude. Together, PAC-3 MSE, ACE, and EDGE form a family of interceptors matched to every tier of the threat and a better cost-to-effect performance. and Counter Drone and Affordable Mass, our Morpheus X rotor can defeat more than 50 drones in a single flight and then be recovered, recharged and reused. And our Kodiak containerized launcher completed its first live fire test less than six months after development started and that device packs up to 12 Gimler's rockets into a single container that can be deployed from air, land or sea and is highly mobile. In autonomy and AI, Skunk Works and the Air Force Test Pilot School flew the X-62 Vista, an F-16 modified, through 27 AI-controlled intercepts across eight flights with an AI agent using live data from our Legion sensor pod to intercept a real aircraft. The full integration took just three months to complete, and that moves AI from simulation into the real flight environment that pilots will face. and it builds on the foundation for the autonomy that will power aircraft like Vectus and team with crew fighters like the F-35 and F-22. Within RMS, Sikorsky completed initial flight testing of the Nomad 100, its new uncrewed aircraft. And this is under a DARPA program where our matrix autonomy was selected to fly on all five competing aircraft in the DARPA fly-off, including those built by other companies. That positions us as a common foundation across a growing range of platforms and not just our own. Expanding our reach as uncrewed systems become fundamental mission. In hypersonics with our space segment, we are investing to move from building individual weapons to building at scale. Our new modular payload delivery system uses technology that has already been flight tested and re-architects it into a modular family of systems. So the same airframe can be configured for doing long-range strike for missions that need a larger payload over a shorter distance or for missile defense with minimal changes to the system. That modular approach reduces the engineering time and cost to bring each new capability into the field. And our long-range hypersonic weapon was fielded during an exercise illustrating our ability to deliver ready-now hypersonic capabilities. The breadth of our portfolio is an important differentiator that makes all this possible. Our new key component product center develops modular sensors, data links, and seekers that can scale across our full portfolio, helping us move faster and at a lower cost and more control of our supply chain. And it's built to serve the whole company, not just a single business. So RMS is already developing technology for the missiles our MFC production produces, for example. and increasingly we are looking beyond our borders for the next breakthroughs. We're partnering with IBM to establish a quantum innovation hub in Switzerland and we have dedicated $100 million of our expanded venture fund to promising companies in the UK and Europe, giving us early access to world-class talent and emerging technology. Discipline investment in research, development and ventures are building our position in the fastest growing parts of the defense budget, including counter drone, Autonomy, Hypersonics, and the Missile Defense Capabilities at the Core of Golden Dome. All of this is happening against a dynamic budget backdrop. Uncertainty around U.S. federal funding is nothing new for our industry, and our business is built to perform through it. Fiscal 2027 opened under a continuing resolution, and the outcome of additional funding through reconciliation is still taking shape. The demand for our capabilities, though, is driven by the threat. It has bipartisan support and is not tied to any one bill or election. The multi-year contract structure is built for this environment, and undefinitized contract actions let production start even when appropriations will take more time. Continuing resolutions affect timing and new starts, but they don't change the direction of demand. and our largest franchises address the department's most urgent priorities from air and missile defense to air dominance and remain essential to their mission. This quarter showed how those pieces fit together. Speed that puts capability in our customers' hands sooner, integration that connects it across every domain, munitions production scaling to meet urgent demand and innovation that builds the franchises of the future are all coming together. The result is capability built from the best technology that we and our partners can bring, delivered at a pace that the current geopolitical environment demands. And so our business is already performing at this level today with a track record of execution and the visibility, growth, and cash generation to carry that momentum well into the future. Now I'll turn the call over to Evan to go through the financials.