12:15 PM EDT, 07/22/2025 (MT Newswires) -- Lockheed Martin ( LMT ) lowered its full-year earnings outlook on Tuesday as the defense contractor's second-quarter profit plunged year on year due to losses on certain aeronautics and helicopter programs.

For 2025, the company now expects per-share earnings of $21.70 to $22, down from its prior guidance of $27 to $27.30. The FactSet-polled consensus is for $27.42. It continues to forecast annual sales of $73.75 billion to $74.75 billion, compared with analysts' $74.34 billion view.

Lockheed reported EPS of $1.46 for the quarter ended June 29, down from $6.85 a year earlier and below Wall Street's $6.57 estimate. The results included $1.6 billion in pre-tax losses on some aeronautics and helicopter programs.

"Our ongoing program review process identified new developments that caused us to re-evaluate the financial position on a set of major legacy programs," Chief Executive Jim Taiclet said in a statement. "As a result, we are taking a number of charges this quarter to address these newly identified risks."

Shares of the company slid 9.1% intraday Tuesday.

In particular, Lockheed's aeronautics segment revamped processes related to a program that faced design and testing challenges, according to the statement. That altered the program's schedule and cost estimates, resulting in additional losses of $950 million on the program.

Additionally, the company booked losses of $570 million on its Canadian maritime helicopter program and $95 million on the Turkish utility helicopter program, incorporating revised contractual terms and conditions.

Second-quarter sales increased to $18.16 billion from $18.12 billion a year earlier, but trailed the $18.57 billion consensus forecast. Revenue in the aeronautics segment grew 2% to $7.42 billion mainly due to higher sales for the F-35 program. The missiles and fire control business delivered an 11% increase in revenue to $3.43 billion due to gains in tactical and strike missile programs.

The space division's sales increased 4% to $3.31 billion, while rotary and mission systems fell 12% to about $4 billion.

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