Lockheed Martin Corporation stock research
FY2025 Q1
Lockheed Martin (LMT) Gross Margin — Quarter Ended Mar 30, 2025
Revenue decreased compared to the prior quarter, while gross profit increased substantially, leading to a significant improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were both higher, and gross margin improved.
Gross margin takeaway
Quarter ended Mar 30, 2025 · FY2025 Q1
Revenue decreased compared to the prior quarter, while gross profit increased substantially, leading to a significant improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were both higher, and gross margin improved.
- The most observable driver of gross margin improvement is the reduction in cost of revenue relative to revenue, as gross profit rose while revenue declined from the prior quarter.
- Compared to the immediately preceding quarter, gross margin strengthened markedly, driven by a lower cost of revenue and higher gross profit despite lower revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.9%
Gross profit
$2.3B
Revenue
$18.0B
Cost of revenue
$15.6B
Quarter-over-quarter change
+9.2 pts
Year-over-year change
+1.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $18.1B | $2.1B | $16.0B | 11.8% |
| Sep 29, 2024 | $17.1B | $2.1B | $15.0B | 12.4% |
| Dec 31, 2024 | $18.6B | $690.0M | $17.9B | 3.7% |
| Mar 30, 2025 | $18.0B | $2.3B | $15.6B | 12.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+9.2 pts
Year-over-year change
Mar 31, 2024
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin improvement is the reduction in cost of revenue relative to revenue, as gross profit rose while revenue declined from the prior quarter.
Compared to the immediately preceding quarter, gross margin strengthened markedly, driven by a lower cost of revenue and higher gross profit despite lower revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue and gross profit both higher.
Monitor the trajectory of cost of revenue relative to revenue, as its decline was the primary factor in the gross margin improvement.