Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Lockheed Martin's free cash flow turned sharply positive in the third quarter, reversing a negative prior quarter. Both revenue and operating cash flow increased significantly versus the year-ago period, driving strong margin expansion.
- Revenue growth combined with a substantial increase in operating cash flow led to strong free cash flow, while capital expenditure remained relatively stable. The free cash flow margin improved markedly from the previous quarter and the year-ago period.
- Compared to the preceding quarter, free cash flow turned positive from negative, driven by significantly higher operating cash flow while capital expenditure remained stable. Versus the same quarter last year, free cash flow and margin both improved as revenue and operating cash flow grew.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$381.0M
Capital spending and related asset purchases.
FCF margin
18.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-12-31 | $18.6B | $1.0B | $582.0M | $441.0M | 2.4% |
| 2025-03-30 | $18.0B | $1.4B | $454.0M | $955.0M | 5.3% |
| 2025-06-29 | $18.2B | $201.0M | $351.0M | -$150.0M | -0.8% |
| 2025-09-28 | $18.6B | $3.7B | $381.0M | $3.3B | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 206.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Surge
Operating cash flow increased sharply from the prior quarter and also improved year-over-year, resulting in positive free cash flow after a negative prior quarter. This was the strongest observable driver of the quarter's performance.
The surge in operating cash flow was the primary factor behind the substantial improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth combined with a substantial increase in operating cash flow led to strong free cash flow, while capital expenditure remained relatively stable. The free cash flow margin improved markedly from the previous quarter and the year-ago period.
Compared to the preceding quarter, free cash flow turned positive from negative, driven by significantly higher operating cash flow while capital expenditure remained stable. Versus the same quarter last year, free cash flow and margin both improved as revenue and operating cash flow grew.
Monitor capital expenditure levels for any material deviation from the relatively stable trend observed this quarter.