Lockheed Martin Corporation (LMT): Business Model Canvas [Dec-2025 Updated]

You're looking at a company whose real business isn't selling widgets, but securing national security for decades, and that changes how you value it. For Lockheed Martin Corporation, as of late 2025, that means managing a massive order backlog approaching $179 billion while projecting full-year revenues between $74.25 billion and $74.75 billion, all hinged on deep government trust and proprietary tech like the F-35. Honestly, understanding their Business Model Canvas is key to seeing how they convert specialized intellectual property and political capital into long-term, annuity-like sustainment streams, so let's dive into the nine blocks that define this defense titan's strategy and where the near-term cost pressures really hit.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Lockheed Martin Corporation running, the ones that translate into billions in recognized revenue. These aren't just vendor agreements; they are deep, multi-decade commitments, especially with the U.S. government.

U.S. Department of Defense (DoD) as the primary customer and program partner

The DoD remains the central pillar of Lockheed Martin Corporation's business. For fiscal year 2025, the company raised its sales forecast to a range between $74.25 billion and $74.75 billion. In the third quarter of 2025 alone, total revenue climbed 8.8% to $18.61 billion. The Aeronautics division, driven heavily by the F-35, saw an 11.9% sales increase, reaching $7.26 billion for that quarter.

Recent contract activity underscores this reliance. In December 2025, the Pentagon awarded orders for 145 F-35 fighter jets worth $11.8 billion. This, combined with other December awards, totaled $15.5 billion in new F-35 revenue, with about $8.4 billion expected to be recognized in 2025. Beyond the F-35, Lockheed Martin Corporation secured an approximately $11 billion U.S. Navy deal for up to 99 CH-53K King Stallion helicopters and a $10 billion contract for Patriot missile systems. Even smaller, specific taskings are significant; a December 2025 contract for HIMARS/MLRS maintenance carried a value of $52,000,000, with $3,945,170 obligated in Fiscal 2025 procurement funds. That's how the big numbers get built, piece by piece.

International F-35 program partners (e.g., Italy, Japan) for co-development and production

The F-35 program is inherently international, with partner nations sharing development costs and procuring aircraft. The December 2025 order for 145 F-35s clearly segmented deliveries between U.S. services, cooperative partners, and Foreign Military Sales (FMS) customers.

Here's a breakdown of how recent orders involved international partners:

Historically, the United Kingdom committed $2 billion toward development costs, which was about 8% of the estimated SDD cost. Overall, the nine major partner nations plan to acquire over 3,100 F-35s through 2035.

Major component suppliers like Northrop Grumman and Pratt & Whitney

The complexity of the platforms requires deep integration with key suppliers. Pratt & Whitney, an RTX division, secured a contract valued at $1.61 billion for F-35 engine sustainment, expected to complete by November 2026. Separately, Pratt & Whitney received a modified contract worth $2.8 billion for the production of F135 engines that power the F-35 jets. Northrop Grumman Corporation (NOC) accounted for 3.2% of all defense contract spending in 2023, earning around $15 billion in contract work that year. The consensus estimate for NOC's 2025 sales indicates year-over-year growth of 2.1%. Also supporting the F-35, L3Harris Technologies supplies avionics, utilizing its $6.5 billion in contract funds.

Strategic MROU (Maintenance, Repair, Overhaul & Upgrade) partners like Korean Air

Lockheed Martin Corporation is actively decentralizing sustainment. In October 2025, Korean Air signed a strategic partnership framework to explore Maintenance, Repair, Overhaul & Upgrade (MROU) cooperation, starting with the F-16 platform.

• Korean Air has over 40+ years of U.S. depot-level maintenance expertise.
• The company has conducted full-spectrum MROU work on more than 3,700 U.S. military aircraft in the Indo-Pacific, including F-15 and F-16 jets.
• Korean Air already supports the F-16 Service Life Extension Program, which extends each jet's lifespan by about 20 years.

Joint ventures such as Tata Lockheed Martin Aerostructures Limited (TLMAL) for C-130J components

This joint venture, established in 2010 in Hyderabad, is a critical part of the C-130J global supply chain. In December 2025, TLMAL hit a major production milestone, delivering its 250th Made-in-India empennage (tail assembly) for the C-130J Super Hercules. This component is then shipped to Marietta, Georgia, for integration. The global C-130J fleet is operated by 23 countries, with more than 560 aircraft logged over 3 million flight hours.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Key Activities

You're looking at the core engine room of Lockheed Martin Corporation's operations, the things they absolutely must do well to keep the lights on and the defense systems flying. It's all about securing massive, long-term government work and executing flawlessly on incredibly complex technology.

Design and manufacturing of fifth-generation fighter jets (F-35)

The F-35 program remains central, driving significant top-line growth. Aeronautics sales in the third quarter of 2025 hit $7.3 billion, marking a 12% year-over-year increase, largely due to this jet. The company was working to deliver between 170 and 190 F-35s in 2025. The F-35 program saw a $215 million sales increase in the first quarter of 2025 from higher production volume alone. The average flyaway cost for the F-35A across lots 15, 16, and 17 was previously reported at $82.5 million.

The sheer scale of the production pipeline is evident in recent contract actions:

• A September 2025 contract modification was for $12.5 billion covering nearly 300 new F-35s (Lots 18 and 19).
• This built upon a December 2024 deal, bringing the total for those lots to about $24.3 billion for 148 airframes each.
• A December 2025 contract modification was awarded for $1.14 billion to procure materials for 65 Lot 20 and 133 Lot 21 production aircraft.

Advanced R&D in hypersonics, directed energy, and AI integration

Maintaining technological superiority requires heavy, consistent investment in research and development. While full 2025 R&D figures aren't finalized here, the trend shows significant commitment. Lockheed Martin spent $1.60 billion on research & development in 2024, up from $1.5 billion in 2023. In the first quarter of 2025, the company invested over $850 million in research and development combined with capital expenditures. This spending fuels development in areas like next-generation military aircraft and space systems.

Long-term sustainment and logistics support for global fleets

The revenue visibility extends far beyond the initial sale of hardware, heavily relying on decades-long support contracts. Sustainment is a massive, recurring revenue driver, especially for the F-35 fleet, which now numbers over 1,230 jets in service across twelve nations. A recent November 2025 contract awarded to Pratt & Whitney for F-35 engine sustainment support was valued at $1,606,190,091 USD. This activity covers global support, spare parts replenishment, and depot-level repairs for the propulsion systems.

Systems integration for complex missile defense and space architectures

This activity involves integrating various platforms and systems for customers, often under classified programs. The Missiles and Fire Control business saw significant wins, with PAC-3 sales year-to-date up 18% over the prior year as of Q3 2025. The Space division also reported growth, driven by work on strategic and missile defense contracts, including involvement in the Artemis missions' Orion capsules and GPS-III satellites. The company secured one of the largest-ever awards for the PAC-3 MSE program in Q3 2025.

Securing and executing multi-billion-dollar government contracts

The foundation of Lockheed Martin Corporation's business model is the ability to win and manage enormous, long-term government deals. The company's backlog reached a record $179 billion as of the third quarter of 2025, representing more than two and a half years of sales. In 2024, 73% of the company's revenue came from U.S. Government contracts, totaling $51.86 billion. The company's 2025 full-year sales guidance is set between $74.25 billion and $74.75 billion. The Q3 2025 performance alone included multiyear awards on PAC-3, JASSM/LRASM, and CH-53K totaling $30 billion.

Here's a look at the financial scale underpinning these activities as of late 2025:

The company is actively increasing production capacity across many lines of business due to this demand. The execution of these contracts is supported by strong cash generation, with Q3 2025 cash from operations at $3.7 billion and free cash flow at $3.3 billion.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Key Resources

You're looking at the core assets that let Lockheed Martin Corporation operate and win those massive defense contracts. These aren't just assets; they are barriers to entry for anyone else trying to compete in this space. Honestly, the sheer scale of what they own and control is what makes their position so secure.

The most immediate measure of future work is the order book. As of Q3 2025, Lockheed Martin Corporation reported a record order backlog of approximately $179 billion. That figure represents more than two and a half years of sales, which gives you incredible revenue visibility.

Intellectual Property and Technological Edge

The value here is in the proprietary knowledge, especially in areas the U.S. government deems critical. This isn't something you can buy off the shelf; it's built over decades of classified work. To maintain this lead, the company keeps pouring capital into future tech.

For instance, R&D expenses for the latest twelve months ending September 28, 2025, stood at $1.6 billion. This investment fuels work in areas like hypersonics, where Lockheed Martin Corporation secured a $1 billion contract for the U.S. Navy's Conventional Prompt Strike program.

Key areas of proprietary technology include:

• Stealth technology across multiple platforms.
• Advanced missile defense systems like PAC-3 MSE.
• Next-generation space and satellite systems.
• Hypersonic propulsion technology, bolstered by the June 2025 acquisition of Aerojet Rocketdyne for $30 billion.

Manufacturing and Operational Footprint

You need specialized, secure places to build this hardware, and Lockheed Martin Corporation has them globally. They operate a vast network of production sites, many of which are purpose-built for specific, high-security programs.

The physical footprint includes over 350 facilities worldwide. These facilities support major production lines, such as the F-35 program, which saw a record 143 F-35 Lightning II jets delivered through the end of Q3 2025.

The scale of their physical assets and digital factory integration is immense, supporting four main business areas:

This table shows the revenue base these facilities support, using 2024 figures as the latest segment breakdown.

Human Capital and Security Clearances

The workforce is perhaps the most irreplaceable resource. You can't just hire a new engineer for a classified program tomorrow; they need specific clearances and deep institutional knowledge. As of fiscal year 2025, Lockheed Martin Corporation employed approximately 121,000 people globally. Of that total, roughly 93% of employees are located in the U.S.

The composition of this workforce is heavily weighted toward technical expertise:

• Total Employees (FY 2025): 121,000
• Engineers, scientists, and technologists: Over 50,000+
• Employees who are veterans: 20%

Government Certifications and Political Capital

This resource manifests as deep, long-term relationships and the necessary security apparatus to work on the most sensitive U.S. defense projects. The reliance on the U.S. government is clear from the revenue mix.

In 2024, 73% of Lockheed Martin Corporation's revenue came directly from the U.S. Government, amounting to $51.86 billion. Furthermore, the company maintains a global presence, partnering with more than 50 countries worldwide. These exclusive certifications and established relationships ensure they remain the incumbent choice for critical defense modernization efforts.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Value Propositions

You're looking at the core promises Lockheed Martin Corporation makes to its customers, which are primarily governments and defense agencies, grounded in hard numbers from late 2025.

Delivering the F-35 Lightning II, the world's most advanced stealth fighter

Lockheed Martin Corporation is delivering the F-35 Lightning II, a multirole strike fighter with electronic warfare and ISR (intelligence, surveillance, and reconnaissance) capabilities. The program is estimated to be worth $1 trillion in total lifetime value. As of November 2025, over 1,255 units have been built. For fiscal year 2025, Lockheed Martin expects to assemble up to 200 F-35 jets. A recent contract modification secured $12.53 billion to produce and deliver 148 Lot 18 aircraft. Another set of late 2024 contracts added $15.5 billion in new F-35 revenue, with about $8.4 billion expected in 2025.

Here are the latest unit cost figures for the aircraft variants (excluding the engine) as of July 2024, with the F135 engine costing $20.4 million as of August 2025:

The Aeronautics division reported an 11.9% sales increase, reaching US$7.26 billion in the third quarter of 2025.

Providing strategic deterrence through missile defense systems (THAAD, PAC-3)

Lockheed Martin Corporation provides combat-proven missile defense through systems like THAAD and PAC-3 MSE. The THAAD Weapon System has demonstrated a perfect flight test record of 17 for 17 intercepts. The Missile Defense Agency awarded a follow-on development contract for THAAD with a ceiling value of $2.8 billion over five years, with options to extend up to 10 years. For the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE), the Army awarded a multiyear contract worth $9.8 billion for 1,970 interceptors and associated hardware for fiscal years 2024 through 2026. This is the largest contract in Lockheed Martin Missiles and Fire Control history. Lockheed Martin plans to deliver more than 600 PAC-3 MSE interceptors in 2025 alone. Another source noted a $10 billion contract for Patriot missile systems.

Offering end-to-end national security solutions from space to sea

The company is pursuing participation in the Trump administration's $175 billion 'Golden Dome' missile shield initiative. Lockheed Martin noted its leadership in space warfare and secure command-and-control systems, including the "Golden Dome for America" project. Furthermore, the company consolidated control over hypersonic propulsion technology by acquiring Aerojet Rocketdyne in June 2025 for $30 billion.

Ensuring long-term platform readiness via decades-long sustainment contracts

Long-term readiness is supported by a massive order backlog. Lockheed Martin Corporation's order backlog hit a record $179 billion as of the third quarter of 2025, representing over two and a half years of sales. The F-35 program alone accounts for about 30% of the company's sales. To support readiness, a key F-35 supplier, Pratt & Whitney, secured a $1.6 billion sustainment contract in November 2025. The company is celebrating 23 consecutive years of dividend increases.

Integrating next-generation digital and AI capabilities for 21st Century Security

Lockheed Martin Corporation is actively integrating digital and AI capabilities, leveraging approximately $1.5 billion in R&D investments in areas like AI. The company announced a strategic collaboration with Google Public Sector to integrate generative AI, including Gemini models, into the Lockheed Martin AI Factory. This effort is designed to accelerate capabilities across several areas:

• Accelerated multi-modal data analysis in minutes rather than days.
• Advanced research and development cycles.
• Optimized logistics and supply chain management.
• Real-time decision-making capabilities.

The company also launched its STAR.OS™ solution on November 6, 2025, a tool enabling different AI systems to work together seamlessly.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Customer Relationships

Dedicated, high-level government relations and lobbying efforts are central to Lockheed Martin Corporation's customer engagement.

• Lockheed Martin Corporation disclosed $4,140,000 in federal lobbying expenses for the third quarter of 2025.
• For the second quarter of 2025, the disclosed federal lobbying expenditure was $3,890,000.
• The company's Government Affairs function focuses on policy related to national defense, space exploration, corporate tax, and export policy.

Long-term, non-transactional relationships are built on securing and executing large-scale, multi-year defense agreements.

• The U.S. government remains the main customer for Lockheed Martin Corporation.
• In 2024, over 70% of Lockheed Martin Corporation's revenue originated from direct contracts with the U.S. government and its allies.
• As of the second quarter of 2025, Lockheed Martin Corporation's market share in the aerospace and defense industry stood at 23.3%.

Direct program management teams work closely with military customers, a necessity given the complexity of the business.

Highly customized, negotiated contracts define the terms for unique national defense needs.

Continuous technical support and platform upgrades are critical components of the long-term relationship, exemplified by the F-35 program.

• Lockheed Martin Corporation expects to deliver up to 190 F-35s in 2025.
• The F-35 program backlog reached 408 aircraft following an agreement in principle for Lot 18.
• The Pentagon had been withholding $5 million per jet from Lockheed Martin Corporation due to Technology Refresh 3 (TR-3) delays, which was reduced by $1.2 million per aircraft based on incremental progress.
• As of May 1, 2025, 72 F-35 jets had been delivered without the full TR-3 functionality.
• A late November 2025 F-35 engine sustainment contract obligated $56,480,819 from the U.S. Air Force and $11,829,825 from the U.S. Navy.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Channels

You're mapping out how Lockheed Martin Corporation gets its products and services into the hands of its customers. For a company this size, the channels are complex, heavily regulated, and deeply tied to government appropriations. Honestly, it's less about marketing funnels and more about navigating the federal acquisition process.

Direct sales and contract negotiation with the U.S. DoD and other federal agencies form the bedrock of Lockheed Martin Corporation's distribution. This channel is characterized by massive, multi-year contracts negotiated directly with the Department of Defense (DoD). For instance, the company reported total sales of $18.6 billion in the third quarter of fiscal year 2025, with the United States accounting for 72.17% of that revenue regionally. The overall health of this channel is reflected in the record backlog, which stood at $179 billion as of late 2025. Major direct channel wins in 2025 included a $9.8 billion contract from the U.S. Army for 1,970 Patriot Advanced Capability - 3 Missile Segment systems.

The Foreign Military Sales (FMS) process managed through the U.S. government is the official mechanism for transferring defense articles and services to allied nations. This is a critical, but indirect, sales channel where the U.S. government acts as the intermediary. A recent example shows this process in action: a modification for F-35 aircraft included $556.6 million sourced from Foreign Military Sales customer funds within a total contract value of $1.14 billion. Another potential FMS case involved an estimated cost of $445 million for F-16 Sustainment equipment for Bahrain, with Lockheed Martin Aeronautics as a principal contractor.

Direct commercial sales to allied foreign governments often overlap with the FMS process but can also involve direct negotiation for specific products or services outside the formal FMS structure, especially for sustainment or upgrades. The F-35 program itself is a prime example, involving both U.S. services and cooperative program partners. A contract modification for F-35 parts covered aircraft for cooperative program partners and FMS customers, with $142 million allocated from cooperative program partner funds in one instance.

For in-service platforms, the global network of maintenance, repair, and overhaul (MRO) depots ensures continued operational readiness. Lockheed Martin Corporation's Aeronautics Field Sustainment (AFS) capability mobilizes field service teams, currently fielding more than 1,900 experienced professionals across more than 60 locations worldwide to support aircraft availability. Key MRO/Sustainment sites include facilities in Marietta, Georgia, handling C-5 Galaxy and P-3 Orion modernization, and Greenville, South Carolina, offering "nose-to-tail" maintenance. It's worth noting that the engine MRO unit, Lockheed Martin Commercial Engine Solutions (LMCES), was acquired by FTAI Aviation in September 2024, meaning that specific engine MRO channel is now under a different entity.

Finally, secure digital networks for software and data delivery to classified programs are essential, though these channels are rarely quantified in public financial reports. These digital pipelines are crucial for delivering updates, mission data, and classified software to platforms managed under the Space and Missiles and Fire Control segments, which contribute significantly to the overall backlog. For example, the Missiles and Fire Control segment saw sales increase by 14% year-over-year in Q3 2025, driven by higher production volumes.

Here's a quick look at some of the contract values flowing through these channels in 2025:

The MRO and Field Support channel relies on a distributed footprint, which is key for rapid response. You can see the global reach in the support structure:

• Aeronautics Field Sustainment (AFS) professionals deployed worldwide: More than 1,900.
• AFS field locations globally: More than 60.
• Approved Repair Centers for C-130 components located in: United States, Canada, and Europe.
• LMT-related MRO sites for C-5/P-3 work located in: Marietta, Georgia, and Greenville, South Carolina.

To be fair, the classified channels are the least transparent, but they are supported by the massive, multi-year contracts that make up the bulk of the $179 billion backlog. These secure networks are the delivery method for the software and integration work underpinning those classified programs.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Customer Segments

You're looking at the core of Lockheed Martin Corporation's revenue engine, which is heavily concentrated in government contracts. This concentration means their fortunes are tied directly to defense budgets and geopolitical stability, which, as of late 2025, looks quite robust.

The largest customer segment is the U.S. Federal Government, which accounted for 73% of the company's total revenue in fiscal year 2024. Within that, the United States Department of Defense (DoD) represented approximately 65% of Lockheed Martin Corporation's revenue in 2024.

To give you a sense of where the dollars are flowing across the business structure, here is a look at the net sales by operating segment for the third quarter of fiscal year 2025:

The total net sales for Lockheed Martin Corporation in Q3 2025 were $18.6 billion, up 9% year-over-year. The company has a record backlog of $179 billion as of Q3 2025, which provides excellent forward visibility.

International Allied Governments and FMS Customers represent the next critical tier of demand, often driven by Foreign Military Sales (FMS) programs and direct government-to-government agreements. This segment is seeing strong momentum, particularly around key platforms.

• The F-35 program, a major revenue driver, includes sales to international partners and FMS customers.
• Lockheed Martin Corporation secured a contract modification in 2025 for $12.53 billion covering the production and delivery of 148 Lot 18 F-35 aircraft for the Air Force, Marine Corps, Navy, international partners, and FMS customers.
• The company noted strong international demand for the F-35, citing new commitments from the U.K. and Belgium in mid-2025.
• The Missiles and Fire Control segment saw year-to-date PAC-3 sales up 18% over the prior year as of Q3 2025, reflecting international demand for missile defense systems.

U.S. Civil Agencies form a smaller, yet strategically important, customer base. Lockheed Martin Corporation serves these agencies through specialized contracts, often within its Space segment.

• The company is a contractor for the National Aeronautics and Space Administration (NASA) for various space programs.
• Lockheed Martin Corporation also contracts with the U.S. Department of Energy.

Domestic and International Commercial Satellite Operators constitute a minor segment of the overall business, though the Space segment supports this area with strategic and missile defense contracts. The overall revenue concentration in government contracts means commercial satellite business is a smaller component compared to the defense and civil government work.

Finance: review the Q4 2025 guidance against the Q3 2025 run rate by next Tuesday.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Cost Structure

You're looking at the cost side of Lockheed Martin Corporation's business, and honestly, it's a heavy lift dominated by assets and specialized talent. The sheer scale of their operations means fixed costs from specialized manufacturing plants and equipment are massive, even if we don't see a single line item for 'plant depreciation' in these summaries.

The investment in future capability is substantial. For the first quarter of 2025, the company reported investing over $850 million in combined research and development and capital expenditures. To give you a sense of the ongoing commitment, Lockheed Martin Corporation reaffirmed its full-year 2025 capital expenditure forecast to be around $1.9 billion.

Program execution challenges directly hit the bottom line, translating into significant, non-recurring costs. In the second quarter of 2025, the company recorded pre-tax losses on various programs totaling $1.6 billion. These charges really ate into the net earnings for that period, which came in at only $342 million.

When you break down those Q2 2025 program losses, you see where the pressure points are:

• Loss on a classified Aeronautics program: $950 million.
• Loss on the Canadian Maritime Helicopter Program (CMHP): $570 million.
• Loss on the Turkish Utility Helicopter Program (TUHP): $95 million.

Labor is another huge cost driver, given the specialized nature of the work and the unionized workforce. While we don't have the exact 2025 labor expense, we can look at the overall spending. Operating expenses for the twelve months ending September 30, 2025, reached $67.253B. As a proxy for production input costs, the total cost of goods sold in the prior full year (FY 2024) was approximately $64.13 billion.

Supply chain pressures and working capital management are clearly impacting cash flow. In Q2 2025, cash from operations plummeted to just $201 million, down sharply from $1.9 billion in Q2 2024. Management attributed this decline primarily to an increase in working capital needs, which included increased Sikorsky inventory, pointing directly to material and component holding costs.

Here's a quick look at some of the key cost-related financial metrics from the first half of 2025:

Finance: draft 13-week cash view by Friday.

Lockheed Martin Corporation (LMT) - Canvas Business Model: Revenue Streams

The Revenue Streams for Lockheed Martin Corporation are fundamentally tied to the fulfillment of large, multi-year government contracts for defense systems and the subsequent long-term support of those platforms.

The primary revenue drivers are:

• Production and delivery of new platforms, such as the F-35 Lightning II fighter jet, which was a key driver in the Aeronautics segment's Q1 2025 sales increase of 3% (a $215 million increase). Other major platform deliveries include the C-130J Super Hercules and the CH-53K Helicopter.
• Long-term sustainment and logistics contracts, which provide a recurring, annuity-like stream for maintaining the operational readiness of delivered platforms like the F-35 fleet and missile defense systems.

Lockheed Martin Corporation projects its full-year 2025 sales to be between $74.25 billion and $74.75 billion. This forecast is supported by a robust backlog, which reached a record high of $179 billion as of the third quarter of 2025.

Revenue is generated across the company's four core segments, with performance varying based on contract execution and delivery schedules. For instance, in Q1 2025, sales totaled $18.0 billion.

Here is a look at the sales breakdown by segment for the first quarter ended March 30, 2025:

The international customer base is also a significant revenue component; international sales accounted for 27.1% of total net sales in the second quarter of 2025.

Finally, a key element of the financial model is returning capital to shareholders, which is supported by the cash flow generated from these large contracts. Lockheed Martin Corporation returned $1.5 billion to shareholders through dividends and share repurchases in Q1 2025, and this commitment continued with approximately $1.8 billion returned in Q3 2025. The company also announced a 5% hike in its quarterly dividend to $3.45 per share in late 2025, setting the new annualized dividend rate at $13.80 per share.