Jan 28 (Reuters) - Lockheed Martin ( LMT ) forecast 2025

profit that missed Wall Street expectations on Tuesday, as the

defense giant grapples with delayed rollouts of a tech upgrade

on the F-35, underscoring a cautious tone for the year amid

rising global tensions.

U.S defense contractors are seeing a surge of weaponry

demand as a result of the Russia-Ukraine war and conflicts in

the Middle East, but are straining to meet demand amid a slower

recovery in pandemic-related supply issues.

The Bethesda, Maryland-based company expects profit per

share between $27 to $27.30 in 2025, missing analysts' average

estimate of $27.92 per share, according to LSEG data.

Lockheed posted net income of $527 million, or $2.22 per

share, a 71% slide from a year ago, as it booked $1.29 billion

in losses associated with classified programs at its aeronautics

and missiles and fire control business units.

Arms makers are likely to get a boost under Donald Trump's

administration, which is expected to increase defense spending.

But the formation of the Department of Government Efficiency

headed by billionaire Elon Musk, who has indicated that Pentagon

spending and priorities will be a target of the efficiency

initiative, has soured investor sentiment.

The billionaire has also criticized legacy defense programs

like Lockheed Martin's ( LMT ) F-35 fighter jet while calling for mass

production of cheaper AI-powered drones, missiles and uncrewed

submarines.

The F-35 program, which has been navigating delays in

rolling out a technology upgrade to give the jet better displays

and processing power under the Technology Refresh 3 program,

contributes about 30% of the company's revenue.

Its aeronautics business, which makes the jet, reported a

40% drop in operating profit in the fourth quarter.

Lockheed's total sales of $18.62 billion in the quarter was

marginally lower than a year earlier.

(Reporting by Utkarsh Shetti in Bengaluru and Mike Stone in

Washington; Editing by Arun Koyyur)