WASHINGTON - In a break from tradition, Congress passed a full-year continuing resolution (CR) to fund the Department of Defense for Fiscal Year 2025, a move that provides new-start authority but hinders long-term planning. While the legislation delivers $892.5 billion for national security, including modest gains for procurement, it imposes significant cuts to research and development and operations accounts, resulting in a constrained fiscal environment even as the administration talks of higher spending levels.

The topline figure in the CR represents a $6 billion increase over FY24 enacted levels, but the Pentagon ultimately loses buying power compared to last year when adjusted for inflation. The final budget is also $3 billion less than requested by then-President Biden, despite bipartisan calls for higher spending, particularly in the Senate.

Topline Procurement Remains Flat; Research & Development Loses Ground

The FY25 CR provides $168.2 billion for procurement, about $688 million (+0.4%) above the request. Despite the flat procurement topline, several procurement accounts saw steep cuts, including those for the Marine Corps and Space Force. The bill also trims $1.9 billion (-1.3%) from Research, Development, Test, and Evaluation (RDT&E) accounts overall. Meanwhile, operation and maintenance funding takes a particularly hard hit, with a $5.7 billion reduction compared to the request. Military construction is also reduced by $818.4 million.

For additional information on how Pentagon acquisition programs were impacted in the CR, read the full story on Forecast International's Defense & Security Monitor using the link below.

Source: Forecast International
Associated URL: https://dsm.forecastinternational.com/2025/04/24/congress-scales-back-ambitions-in-final-fy25-defense-deal/
Author: s. mcDougall, Defense Analyst 

BETHESDA, Md. -- For the first quarter of 2025, Lockheed Martin reported sales of $18.0 billion, up 4 percent compared to $17.2 billion in the first quarter of 2024. Net earnings in the first quarter of 2025 were $1.7 billion, compared to $1.5 billion, in the first quarter of 2024.

"The momentum we created last year continued into the first quarter of 2025, with sales growing 4% year-over-year and free cash flow generation of $955 million. We continued investing in the business with over $850 million of research and development and capital expenditures in the quarter, and returned $1.5 billion to shareholders through dividends and share repurchases," said Lockheed Martin Chairman, President and CEO Jim Taiclet. "These solid first quarter results reinforce confidence in our ability to achieve the full year 2025 financial guidance we laid out in January, demonstrating the resilience and adaptability of Lockheed Martin's franchises amidst a highly dynamic geopolitical and technical environment."

"We are focused on operational excellence to drive the timely and efficient execution of our $173 billion backlog, which represents more than two years of sales," continued Taiclet. "We remain committed to realizing our vision of digital and interoperable systems and are aligning our mission roadmaps to best support our customers' rapidly evolving security needs, both domestic and global. This focus, along with Lockheed Martin's track record of innovation and performance, continues to result in new awards, including the recent missiles

The company reaffirmed its outlook for 2025 with sales forest in the $73.75 billion to $74.75 billion range. However, the 2025 outlook does not include the evolving impacts of tariffs or related recoveries, the recent Next Generation Air Dominance announcement, or Executive Orders issued by the Trump Administration.

INDUSTRY SEGMENTS

Aeronautics

Aeronautics' sales during the quarter ended March 30, 2025 increased to $7.1 billion million, or 3%, compared to $6.8 billion in the same period in 2024. This increase was primarily driven by a $215 million increase in sales from the F-35 program, resulting from higher volume on production contracts.

Aeronautics' operating profit during the quarter ended March 30, 2025 increased to $720 million, or 6%, compared to $679 million in the same period in 2024. This increase was attributable to two main factors: a $20 million increase in profit booking rate adjustments and a $20 million increase from higher volume, as described above. The increase in profit booking rate adjustments was primarily due to an $80 million adjustment resulting from favorable performance at completion on a classified program, partially offset by lower profit rate adjustments on C-130 programs.

Missiles and Fire Control

MFC's sales during the quarter ended March 30, 2025 increased 13% to $3.4 billion compared $3.0 billion to the same period in 2024. This increase was primarily driven by a $370 million increase in sales from tactical and strike missile programs, resulting from production ramp-up on Joint Air-to-Surface Standoff Missile (JASSM), Long Range Anti-Ship Missile (LRASM), and precision fires programs . MFC's operating profit during the quarter ended March 30, 2025 increased to $465 million, or 50%, compared to $311 million in the same period in 2024. This increase was attributable to two main factors: a $135 million increase in profit booking rate adjustments and a $25 million increase from production ramp-up, as described above. The increase in profit booking rate adjustments was primarily due to a $100 million reach-forward loss for a classified program and an unfavorable profit adjustment on Hellfire recognized in the first quarter of 2024 that did not recur, partially offset by lower favorable profit adjustments on Patriot Advanced Capability-3 (PAC-3).

Rotary and Mission Systems

RMS' sales during the quarter ended March 30, 2025 increased 6% to $4,3 billion compared to $4.1 billion the same period in 2024. This increase was primarily driven by a $145 million increase in sales from integrated warfare systems and sensors (IWSS) programs due to higher volume on the Canadian Surface Combatant (CSC) and radar programs; and a $125 million increase from Sikorsky helicopter programs due to higher production volume on Black Hawk programs.

RMS' operating profit during the quarter ended March 30, 2025 increased $521 million, or 21%, compared to $430 million in the same period in 2024. This increase was attributable to three main factors: a $45 million increase in profit booking rate adjustments, a $25 million increase from favorable contract mix and cost recoveries, and a $20 million increase from higher volume, as described above. The increase in profit booking rate adjustments was primarily due to unfavorable profit adjustments on Seahawk programs in the first quarter of 2024 that did not recur. The increase in favorable contract mix and cost recoveries includes a $50 million intellectual property license arrangement.

Space

Space's sales during the quarter ended March 30, 2025 fell 2% to $3.2 billion compared to $3.3 billion in the same period in 2024. This decrease was primarily attributable to lower sales of $155 million on national security space programs due to program lifecycle on Next Generation Overhead Persistent Infrared (Next Gen OPIR) system and lower volume on Transport Layer programs. This decrease was partially offset by an increase of $75 million primarily due to favorable performance at completion on certain commercial civil space programs.

Space's operating profit during the quarter ended March 30, 2025 increased to $379 million, or 17%, compared to $325 million the same period in 2024. This increase was attributable to an $85 million increase in profit booking rate adjustments partially offset by $20 million of lower equity earnings driven by lower launch volume from the company's investment in United Launch Alliance (ULA). The increase in profit booking rate adjustments was primarily due to favorable performance at completion on certain commercial civil space programs. Total equity (losses)/earnings (ULA) represented approximately $(5) million, or (1)%, of Space's operating profit during the quarter ended March 30, 2025, compared to approximately $15 million, or 5% for the same period in 2024.

Source: Forecast International
Associated URL: www.lockheedmartin.com

TOYOTA CITY - SkyDrive, an eVTOL aircraft manufacturer based in Japan, began displaying a full-scale mockup of the eVTOL SKYDRIVE (SkyDrive SD-05 Model) as part of the Advanced Air Mobility Station, a pavilion showcasing eVTOL technology at the Expo 2025 Osaka, Kansai.

Inside the pavilion, which is located within the Expo’s Empowering Zone, visitors with a reservation have the opportunity to board the mockup. This is the first-ever exhibition to feature a full-scale model of the SKYDRIVE SD-05.

The Advanced Air Mobility Station, which includes the full-scale mockup display of the SKYDRIVE SD-05, gives visitors a glimpse of the role eVTOLs will play in our future society.

The model has been built to actual size, measuring approximately 11.5 meters in length, 11.3 meters in width, and three meters in height (including rotors).

SKYDRIVE is an electric-powered, environmentally-friendly aircraft with room for three people - one pilot and two passengers. Lighter and quieter than a conventional helicopter, it is ideally suited to the urban environment, with the ability to take off and land from a wide variety of building rooftops and other limited spaces.

The cabin is designed with a focus on comfort, providing each passenger with ample personal space. In the rear seats, two passengers can enjoy their journey sitting side by side. The large windows offer a wide panoramic view, ensuring that time spent in the air with SkyDrive is an immersive and memorable experience passengers will want to repeat.

Source: Vertical Magazine
Associated URL: https://verticalmag.com/press-releases/skydrive-showcases-full-scale-mockup-of-its-evtol-to-public-for-the-first-time/