Lockheed Martin says F-16 development delays hurt Q1 earnings

Lockheed Martin said F-16 development delays and production issues hurt its first-quarter results, adding pressure to the company’s aeronautics business.

In its April 23 earnings release, Lockheed said sales were $18.0 billion and net earnings were $1.5 billion, or $6.44 per share. The company said unfavorable profit adjustments on the F-16 program reflected production performance and development delays.

Reuters reported that delays on the F-16 weighed on profit in the aeronautics segment, and Aviation Week later highlighted the same issue in its defense report coverage.

The problem is notable because the F-16 remains one of Lockheed’s major international aircraft programs. When development or production slips hit a program of that size, they can quickly ripple into quarterly margins.

The immediate question is whether Lockheed will spell out the issue in more detail on upcoming calls or filings, and whether the F-16 adjustments continue into later quarters.