Key Takeaways
- Lockheed Martin (LMT) reported a significant miss on Q2 operating profit and net income, leading to a substantial cut in its full-year EPS guidance, despite sales largely meeting expectations.
- RTX Corp (RTX) and Sherwin-Williams (SHW) delivered mixed second-quarter results, with both companies beating some estimates but subsequently lowering their full-year earnings per share outlooks.
- Coca-Cola (KO) posted a strong Q2, surpassing comparable EPS and organic revenue estimates, and announced plans to launch a cane sugar version of its beverage in the U.S. this fall.
- Philip Morris (PM) exceeded adjusted EPS and operating income expectations for Q2, prompting a raise in its full-year adjusted EPS guidance.
Lockheed Martin (LMT) faced a challenging second quarter in 2025, reporting net sales of $18.16 billion, slightly below the estimated $18.53 billion, and an operational profit of $748 million, a significant miss compared to the estimated $2.15 billion. The defense giant's net income plummeted to $342 million, or $1.46 per share, a sharp decline from $1.6 billion or $6.85 per share in Q2 2024. This performance led Lockheed Martin to revise its full-year EPS guidance down to approximately $21.70 to $22.00, from a previous range of $27.00 to $27.30, although it reaffirmed its full-year cash flow from operations guidance of about $8.10 billion to $8.50 billion. The company delivered 50 F-35 jets during the quarter.
RTX Corp (RTX), another aerospace and defense leader, reported a strong second quarter with adjusted sales of $21.58 billion, exceeding estimates of $20.64 billion, and adjusted EPS of $1.56, beating the $1.45 estimate. Sales for Pratt & Whitney reached $7.63 billion and Collins Aerospace Systems sales were $7.62 billion, both surpassing estimates. However, despite this strong top-line performance, RTX lowered its full-year adjusted EPS guidance to $5.80 to $5.95, down from the previous $6.00 to $6.15, while reaffirming its free cash flow outlook of $7.0 billion to $7.5 billion. The company's backlog grew to $236 billion, indicating robust demand.
Sherwin-Williams (SHW) also presented mixed results for its second quarter. The company reported adjusted EPS of $3.38, falling short of the $3.81 estimate, but net sales were $6.31 billion, largely in line with the $6.3 billion estimate. Following these results, Sherwin-Williams adjusted its full-year adjusted EPS guidance downward to $11.20 to $11.50, from an earlier projection of $11.65 to $12.05. The company noted that results were impacted by approximately $40 million in sooner-than-anticipated new building costs and higher year-over-year non-operating costs.
In the consumer sector, Coca-Cola (KO) delivered a robust second quarter, with comparable EPS of 87 cents, outperforming the 83 cents estimate, and net revenue of $12.58 billion. The beverage giant saw adjusted organic revenue growth of +5%, exceeding the +4.49% estimate, and maintained a strong comparable operating margin of 34.7%. Coca-Cola reaffirmed its full-year adjusted organic revenue growth guidance of +5% to +6%. Additionally, the company announced plans to launch a cane sugar version of Coca-Cola in the U.S. this fall.
Philip Morris (PM) reported a strong Q2, with adjusted EPS of $1.91, surpassing the $1.86 estimate, and adjusted operating income of $4.25 billion, above the $4.11 billion estimate. Net revenue came in at $10.14 billion, slightly below the $10.3 billion estimate. Due to its strong performance, Philip Morris raised its full-year adjusted EPS guidance to $7.43 to $7.56, up from the previous $7.36 to $1.49, and continues to expect full-year organic revenue growth of +8%. The company's smoke-free business accounted for 41% of total net revenues, with shipment volumes up 11.8%.
In other market news, General Motors (GM) CFO stated that the company does not anticipate any specific price increases related to tariffs. Pre-market movers included NXP Semiconductors (NXPI) down 6% due to underwhelming guidance, Synchrony Financial (SYF) down 1.7% after missing revenue and lowering its FY outlook, and D.R. Horton (DHI) up 7% on strong top and bottom line results.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.