Technology

Lockheed Martin Reports First Quarter 2025 Financial Results

Published

1 year ago

April 22, 2025

Sales increased 4% to $18.0 billionNet earnings of $1.7 billion, or $7.28 per shareCash from operations of $1.4 billion and free cash flow of $955 millionReturned $1.5 billion of cash to shareholders through dividends and share repurchasesReaffirms 2025 financial outlook

BETHESDA, Md., April 22, 2025 /PRNewswire/ — Lockheed Martin Corporation [NYSE: LMT] today reported first quarter 2025 sales of $18.0 billion, compared to $17.2 billion in the first quarter of 2024. Net earnings in the first quarter of 2025 were $1.7 billion, or $7.28 per share, compared to $1.5 billion, or $6.39 per share, in the first quarter of 2024. Cash from operations was $1.4 billion in the first quarter of 2025, compared to $1.6 billion in the first quarter of 2024. Free cash flow was $955 million in the first quarter of 2025, compared to $1.3 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 contracts for Precision Strike Missiles, THAAD and JASSM/LRASM, as well as the Trident II D5 Life Extension, comprising up to $10 billion of future work.”

Summary Financial Results

The following table presents the company’s summary financial results.

(in millions, except per share data)

Quarters Ended

March 30,

2025

March 31,

2024

Sales

$ 17,963

$ 17,195

Business segment operating profit1

$ 2,085

$ 1,745

Unallocated items

FAS/CAS pension operating adjustment

379

406

Intangible asset amortization expense

(64)

(61)

Other, net

(28)

(61)

Total unallocated items

287

284

Consolidated operating profit

$ 2,372

$ 2,029

Net earnings

$ 1,712

$ 1,545

Diluted earnings per share

$ 7.28

$ 6.39

Cash from operations

$ 1,409

$ 1,635

Capital expenditures

(454)

(378)

Free cash flow1

$ 955

$ 1,257

Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of this news release for more information.

Cash from operations in the first quarter of 2025 was $1.4 billion with free cash flow of $955 million compared to $1.6 billion with $1.3 billion in free cash flow in the first quarter of 2024. The decrease in cash from operations was primarily due to an increase in contract assets as a result of the timing of milestones, higher insurance costs, and timing of payments for employee related accruals. These items were partially offset by a decrease in accounts receivable due to the timing of billings and collections and an increase in accounts payable due to timing of supplier payments. The decrease in free cash flows was primarily due to the cash from operations drivers and higher software expenditures.

During the quarter ended March 30, 2025, the company paid cash dividends of $796 million and repurchased 1.7 million shares for $750 million.

2025 Financial Outlook

The company’s financial outlook for 2025 and other sections of this news release contain forward-looking statements, which reflect the company’s judgment based on the information available at the time of this news release. The financial outlook for 2025 assumes the company’s programs are funded by and at levels consistent with the full year Continuing Appropriations and Extensions Act of 2025 signed by the President on March 15, 2025. 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 Administration. Additionally, it is the company’s practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, future gains or losses related to changes in valuations of the company’s net assets and liabilities for deferred compensation plans or early-stage company investments, pension risk transfer transactions or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. Actual results may differ materially from those projected. For additional factors that may impact the company’s actual results, refer to the “Forward-Looking Statements” section in this news release.

(in millions, except per share data)

2025 Outlook

Sales

~$73,750 – $74,750

Business segment operating profit1

~$8,100 – $8,200

Total FAS/CAS pension adjustment

~$1,125

Diluted earnings per share

~$27.00 – $27.30

Cash from operations

~$8,500 – $8,700

Capital expenditures

~$1,900

Free cash flow1

~$6,600 – $6,800

Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of this news release for more information.

Segment Results

The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company’s business segments and reconciles these amounts to the company’s consolidated financial results.

(in millions)

Quarters Ended

March 30,

2025

March 31,

2024

Sales

Aeronautics

$ 7,057

$ 6,845

Missiles and Fire Control

3,373

2,993

Rotary and Mission Systems

4,328

4,088

Space

3,205

3,269

Total sales

$ 17,963

$ 17,195

Operating profit

Aeronautics

$ 720

$ 679

Missiles and Fire Control

465

311

Rotary and Mission Systems

521

430

Space

379

325

Total business segment operating profit

2,085

1,745

Unallocated items

FAS/CAS operating adjustment

379

406

Intangible asset amortization expense

(64)

(61)

Other, net

(28)

(61)

Total unallocated items

287

284

Total consolidated operating profit

$ 2,372

$ 2,029

For information on factors impacting comparability of the company’s segment sales, operating profit and operating margins, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2024.

Consolidated net profit booking rate adjustments increased segment operating profit by approximately $480 million in the quarter ended March 30, 2025, which includes $185 million of adjustments resulting from favorable performance upon completion on certain commercial civil space programs at Space and a classified program at Aeronautics. Consolidated net profit booking rate adjustments increased segment operating profit by approximately $195 million in the quarter ended March 31, 2024, which included a $100 million reach-forward loss recognized on a classified program at MFC.

Aeronautics

(in millions)

Quarters Ended

March 30,

2025

March 31,

2024

Sales

$ 7,057

$ 6,845

Operating profit

720

679

Operating margin

10.2 %

9.9 %

Aeronautics’ sales during the quarter ended March 30, 2025 increased $212 million, or 3%, compared to 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 $41 million, or 6%, compared to 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

(in millions)

Quarters Ended

March 30,

2025

March 31,

2024

Sales

$ 3,373

$ 2,993

Operating profit

465

311

Operating margin

13.8 %

10.4 %

MFC’s sales during the quarter ended March 30, 2025 increased $380 million, or 13%, compared 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 $154 million, or 50%, compared to 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

(in millions)

Quarters Ended

March 30,

2025

March 31,

2024

Sales

$ 4,328

$ 4,088

Operating profit

521

430

Operating margin

12.0 %

10.5 %

RMS’ sales during the quarter ended March 30, 2025 increased $240 million, or 6%, compared to 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 $91 million, or 21%, compared to 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

(in millions)

Quarters Ended

March 30,

2025

March 31,

2024

Sales

$ 3,205

$ 3,269

Operating profit

379

325

Operating margin

11.8 %

9.9 %

Space’s sales during the quarter ended March 30, 2025 decreased $64 million, or 2%, compared to 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 $54 million, or 17%, compared to 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.

Income Taxes

The company’s effective income tax rate was 15.9% and 15.8% for the quarters ended March 30, 2025 and March 31, 2024. The rates for all periods benefited from research and development tax credits, tax deductions for foreign derived intangible income, dividends paid to the company’s defined contribution plans with an employee stock ownership plan feature and employee equity awards.

Use of Non-GAAP Financial Measures

This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company’s definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.

Business segment operating profit

Business segment operating profit represents operating profit from the company’s business segments before unallocated income and expense. This measure is used by the company’s senior management in evaluating the performance of its business segments and is a performance goal in the company’s annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.

(in millions)

2025 Outlook

Business segment operating profit (non-GAAP)

~$8,100 – $8,200

FAS/CAS operating adjustment1

~1,520

Intangible asset amortization expense

~(240)

Other, net

~(465)

Consolidated operating profit (GAAP)

~$8,915 – $9,015

Reflects the amount by which total CAS pension cost of $1.6 billion exceeds FAS pension service cost and excludes non-service FAS pension expense. Refer to the supplemental table “Selected Financial Data” included in this news release for a detail of the FAS/CAS operating adjustment.

Free cash flow

Free cash flow is cash from operations less capital expenditures. The company’s capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company’s annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and future pension contributions.

Webcast and Conference Call Information

Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Tuesday, April 22, 2025, at 11:00 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor. The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor.

For additional information, visit the company’s website: www.lockheedmartin.com.

About Lockheed Martin

Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.

Forward-Looking Statements

This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:

the company’s reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company’s ability to negotiate favorable contract terms;budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling and the potential for government shutdowns, and changing funding and acquisition priorities;risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program;planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment;the timing of contract awards or contract definitization, achievement of performance milestones, customer acceptance of product deliveries, and receipt of customer payments;the company’s ability to recover costs under U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts;customer procurement and other policies, laws, regulations and executive actions that affect the company and its industry, programs, future opportunities, and financial performance, including those relating to mission priorities, competing domestic and international spending, contracting terms (such as fixed-price requirements), treatment of contractor performance issues, and contractor access to competitive opportunities;performance and financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers;economic, industry, business and political conditions including their effects on governmental policy;the impact of inflation and other cost pressures;government actions that restrict or prevent the sale or delivery of the company’s products (such as delays in approvals for exports requiring Congressional notification);foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences, and other trade restrictions;the company’s success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales;changes in non-U.S. national priorities and government budgets and planned orders, including potential effects from fluctuations in currency exchange rates;the competitive environment for the company’s products and services;the company’s ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;the company’s ability to benefit fully from or adequately protect its intellectual property rights;the company’s ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions;cyber or other security threats or other disruptions faced by the company or its suppliers;the company’s ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions;the accuracy of the company’s estimates and projections;changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension risk transfers and associated settlement charges;realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market;the company’s efforts to increase the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives;the risk of an impairment of the company’s assets, including the potential impairment of goodwill and intangibles;the availability and adequacy of the company’s insurance and indemnities;compliance with laws, regulations, policies, and customer requirements relating to environmental matters;the impact of public health crises, natural disasters and other severe weather conditions on the company’s business and financial results, including supply chain disruptions and delays, employee absences, and program delays;changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; andthe outcome of legal proceedings, bid protests, environmental remediation efforts, audits, administrative reviews, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems.

These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the company’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.

The company’s actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its issuance. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.

Lockheed Martin Corporation
Consolidated Statements of Earnings1
(unaudited; in millions, except per share data)

Quarters Ended

March 30,
2025

March 31,
2024

Sales

$ 17,963

$ 17,195

Operating costs and expenses

(15,640)

(15,202)

Gross profit

2,323

1,993

Other income, net

Operating profit

2,372

2,029

Interest expense

(268)

(255)

Non-service FAS pension (expense) income

(98)

Other non-operating income, net

Earnings before income taxes

2,036

1,835

Income tax expense

(324)

(290)

Net earnings

$ 1,712

$ 1,545

Effective tax rate

15.9 %

15.8 %

Earnings per common share

Basic

$ 7.30

$ 6.42

Diluted

$ 7.28

$ 6.39

Weighted average shares outstanding

Basic

234.4

240.7

Diluted

235.3

241.6

Common shares reported in stockholders’

equity at end of period

233

239

The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on March 30, for the first quarter of 2025 and March 31, for the first quarter of 2024. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company’s fiscal year ends on Dec. 31.

Lockheed Martin Corporation
Business Segment Summary Operating Results
(unaudited; in millions)

Quarters Ended

March 30,
2025

March 31,
2024

% Change

Sales

Aeronautics

$ 7,057

$ 6,845

3 %

Missiles and Fire Control

3,373

2,993

13 %

Rotary and Mission Systems

4,328

4,088

6 %

Space

3,205

3,269

(2 %)

Total sales

$ 17,963

$ 17,195

4 %

Operating profit

Aeronautics

$ 720

$ 679

6 %

Missiles and Fire Control

465

311

50 %

Rotary and Mission Systems

521

430

21 %

Space

379

325

17 %

Total business segment operating profit

2,085

1,745

19 %

Unallocated items

FAS/CAS operating adjustment

379

406

Intangible asset amortization expense

(64)

(61)

Other, net

(28)

(61)

Total unallocated items

287

284

1 %

Total consolidated operating profit

$ 2,372

$ 2,029

17 %

Operating margin

Aeronautics

10.2 %

9.9 %

Missiles and Fire Control

13.8 %

10.4 %

Rotary and Mission Systems

12.0 %

10.5 %

Space

11.8 %

9.9 %

Total business segment operating margin

11.6 %

10.1 %

Total consolidated operating margin

13.2 %

11.8 %

Lockheed Martin Corporation
Consolidated Balance Sheets
(in millions, except par value)

March 30,
2025

Dec. 31,

2024

(unaudited)

Assets

Current assets

Cash and cash equivalents

$ 1,803

$ 2,483

Receivables, net

2,024

2,351

Contract assets

14,677

12,957

Inventories

3,599

3,474

Other current assets

698

584

Total current assets

22,801

21,849

Property, plant and equipment, net

8,713

8,726

Goodwill

11,076

11,067

Intangible assets, net

1,952

2,015

Deferred income taxes

3,568

3,557

Other noncurrent assets

8,559

8,403

Total assets

$ 56,669

$ 55,617

Liabilities and equity

Current liabilities

Accounts payable

$ 3,821

$ 2,222

Salaries, benefits and payroll taxes

2,391

3,125

Contract liabilities

9,375

9,795

Current maturities of long-term debt

1,643

643

Other current liabilities

3,957

3,635

Total current liabilities

21,187

19,420

Long-term debt, net

18,661

19,627

Accrued pension liabilities

4,815

4,791

Other noncurrent liabilities

5,323

5,446

Total liabilities

49,986

49,284

Stockholders’ equity

Common stock, $1 par value per share

233

234

Additional paid-in capital

—

Retained earnings

14,773

14,551

Accumulated other comprehensive loss

(8,323)

(8,452)

Total stockholders’ equity

6,683

6,333

Total liabilities and equity

$ 56,669

$ 55,617

Lockheed Martin Corporation
Consolidated Statements of Cash Flows
(unaudited; in millions)

Quarters Ended

March 30,
2025

March 31,
2024

Operating activities

Net earnings

$ 1,712

$ 1,545

Adjustments to reconcile net earnings to net cash provided by operating activities

Depreciation and amortization

397

351

Stock-based compensation

Deferred income taxes

(34)

(77)

Changes in assets and liabilities

Receivables, net

327

(125)

Contract assets

(1,720)

(867)

Inventories

(125)

(146)

Accounts payable

1,680

1,301

Contract liabilities

(420)

(445)

Income taxes

339

341

Qualified defined benefit pension plans

111

(1)

Other, net

(918)

(303)

Net cash provided by operating activities

1,409

1,635

Investing activities

Capital expenditures

(454)

(378)

Other, net

Net cash (used for) investing activities

(430)

(372)

Financing activities

Issuance of long-term debt, net of related costs

—

1,980

Repurchases of common stock

(750)

(1,000)

Dividends paid

(796)

(780)

Other, net

(113)

(115)

Net cash (used for) provided by financing activities

(1,659)

Net change in cash and cash equivalents

(680)

1,348

Cash and cash equivalents at beginning of period

2,483

1,442

Cash and cash equivalents at end of period

$ 1,803

$ 2,790

Lockheed Martin Corporation
Selected Financial Data
(unaudited; in millions)

2025

Outlook

2024

Actual

Total FAS (expense) income and CAS cost

FAS pension (expense) income

$ (445)

$ 2

Less: CAS pension cost

1,570

1,684

Total FAS/CAS pension adjustment

$ 1,125

$ 1,686

Service and non-service cost reconciliation

FAS pension service cost

$ (50)

$ (60)

Less: CAS pension cost

1,570

1,684

FAS/CAS pension operating adjustment

1,520

1,624

Non-service FAS pension (expense) income

(395)

Total FAS/CAS pension adjustment

$ 1,125

$ 1,686

Lockheed Martin Corporation
Other Financial and Operating Information
(unaudited; in millions, except for aircraft deliveries and weeks)

Backlog

March 30,

2025

Dec. 31,

2024

Aeronautics

$ 57,476

$ 62,763

Missiles and Fire Control

40,637

38,783

Rotary and Mission Systems

39,113

38,117

Space

35,748

36,377

Total backlog

$ 172,974

$ 176,040

Quarters Ended

Aircraft Deliveries

March 30,
2025

March 31,
2024

F-35

—

F-16

C-130J

Government helicopter programs

Commercial helicopter programs

—

Number of Weeks in Reporting Period1

2025

2024

First quarter

Second quarter

Third quarter

Fourth quarter

Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods.

View original content to download multimedia:https://www.prnewswire.com/news-releases/lockheed-martin-reports-first-quarter-2025-financial-results-302433873.html

SOURCE Lockheed Martin

Technology

Escalade Announces Second Quarter 2026 Results Conference Call Date

Published

16 minutes ago

July 23, 2026

EVANSVILLE, Ind., July 23, 2026 /PRNewswire/ — Escalade, Inc. (NASDAQ: ESCA, or the “Company”), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced that it will issue its second quarter 2026 results before the market opens on Thursday, July 30, 2026. A conference call will be held that day at 11:00 a.m. ET to review the Company’s financial results and conduct a question-and-answer session.

A webcast of the conference call will be available in the Investor Relations section of Escalade’s website at www.escaladeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Domestic Live:

833-890-3250

International Live:

412-206-6441

To listen to a replay of the teleconference, which subsequently will be available through August 13, 2026:

Domestic Replay:

844-512-2921

International Replay:

412-317-6671

Conference ID:

10209663

ABOUT ESCALADE

Founded in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods, safety, fitness, and indoor/outdoor recreation equipment. Our mission is to connect family and friends, create lasting memories, and play life to the fullest. Leaders in our respective categories, Escalade’s distinct and acclaimed brands include Goalrilla™ in-ground basketball hoops; STIGA® tennis tables and accessories; Bear® Archery and archery equipment; Brunswick Billiards® tables and accessories; Accudart® darting; ONIX® pickleball; Lifeline® fitness products; and RAVE Sports® water recreation products. Escalade’s products are available online and through leading retailers nationwide. For more information about Escalade’s diverse and prominent brand portfolio, history, financials, and governance, please visit www.escaladeinc.com.

INVESTOR RELATIONS CONTACT

Wesley Smith
Vice President, Financial Reporting & Investor Relations
812-467-1334

View original content to download multimedia:https://www.prnewswire.com/news-releases/escalade-announces-second-quarter-2026-results-conference-call-date-302833660.html

SOURCE Escalade, Incorporated

Technology

Analog Devices to Report Third Quarter Fiscal Year 2026 Financial Results on Wednesday, August 19, 2026

Published

16 minutes ago

July 23, 2026

WILMINGTON, Mass., July 23, 2026 /PRNewswire/ — Analog Devices, Inc. (Nasdaq: ADI) today announced it will release financial results for the third quarter fiscal year 2026 at 7:00 a.m. Eastern time on Wednesday, August 19, 2026. Following the press release, the Company will host a conference call at 10:00 a.m. Eastern time, the same day. Vincent Roche, Chief Executive Officer and Chair, Richard Puccio, Executive Vice President and Chief Financial Officer, and Jeff Ambrosi, Head of Investor Relations, Senior Director, will discuss ADI’s results and business outlook.

The press release, live conference call and subsequent archived copies can be accessed on Analog Devices’ Investor Relations website at investor.analog.com. To participate in the live conference call, please pre-register at: register-conf.media.server.com. Upon registering, you will be emailed a dial-in number and unique PIN.

About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than $11 billion in FY25, ADI ensures today’s innovators stay Ahead of What’s Possible. Learn more at www.analog.com and on LinkedIn and X.

Jeff Ambrosi
Head of Investor Relations, Senior Director
Analog Devices, Inc.
781-461-3282
invesor.relations@analog.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/analog-devices-to-report-third-quarter-fiscal-year-2026-financial-results-on-wednesday-august-19-2026-302832572.html

SOURCE Analog Devices, Inc.

Technology

Scholastic Reports Fourth Quarter and Fiscal 2026 Results

Published

16 minutes ago

July 23, 2026

Fiscal 2026 Operating Income of $15.2 Million; Adjusted EBITDA of $151.5 Million, Up 4%, in Line With Guidance

Returned Over $285 Million to Shareholders During Fiscal Year

Fiscal 2027 Outlook Targets Return to Revenue Growth and Higher Adjusted EBITDA on Comparable Basis

NEW YORK, July 23, 2026 /PRNewswire/ — Scholastic Corporation (NASDAQ: SCHL), the global children’s publishing, education and media company, today reported financial results for the Company’s fiscal fourth quarter and full year ended May 31, 2026.

Peter Warwick, President and Chief Executive Officer, said, “Fiscal 2026 demonstrated the earnings power of a more focused Scholastic, as the Company made substantial progress in a multi-year transformation of its governance, organization, strategy and balance sheet. Adjusted EBITDA rose, in line with guidance, positioning the Company for growth in fiscal 2027.”

Fiscal 2026 revenue decreased 3%, and operating income was $15.2 million, compared with $15.8 million in fiscal 2025. Adjusted operating income, excluding one-time items, increased to $47.1 million from $35.8 million in the prior year period. Adjusted EBITDA was $151.5 million, up 4%, and increased 15% on a comparable basis, reflecting the full-year impact of additional lease expense and the loss of rental income from the sale-leaseback transactions in both periods. In the fourth quarter, Adjusted EBITDA increased $1.0 million on that same comparable basis, driven by continued strong execution in Book Fairs, Entertainment’s return to growth and disciplined cost management across the Company, even as revenue was affected by expected comparisons against an exceptional prior-year quarter in Trade and continued funding volatility in Education.

Mr. Warwick continued, “Today, our company is more clearly organized around the advantages that make Scholastic distinctive: a trusted brand, beloved IP, proprietary school-based channels and deep relationships with educators and families built over more than a century. Scholastic remains uniquely positioned to connect books, schools, homes and screens in ways that deepen kids’ engagement with stories and bring more children back to reading at a scale and depth that others cannot easily replicate.

“During the fourth quarter, we continued to see the impact of this strategy across the business. Book Fairs deepened our reach with schools and families, Trade Publishing remained anchored by enduring children’s franchises, and Entertainment expanded discovery and engagement with Scholastic IP across platforms. In Education, while funding volatility and a challenging supplemental curriculum market continued to pressure results, we made progress repositioning the business around a more focused strategy, improved execution and lower cost structure, with trends improving throughout the year.

“Fiscal 2026 was also an important year of capital deployment and shareholder value creation. Following the sale-leaseback transactions, we returned significant capital to shareholders through share repurchases, a modified Dutch auction tender offer and dividends, and established a long-term leverage framework that supports both disciplined investment and continued capital returns. Together, these actions completed major elements of our financial transformation and provide Scholastic with greater financial flexibility to enhance shareholder returns.

“As we enter fiscal 2027, Scholastic is strongly positioned to translate its durable advantages into profitable, sustained growth. Our outlook reflects expected revenue growth and higher Adjusted EBITDA on a comparable basis, reflecting the full-year impact of the sale-leaseback transactions in both periods. We remain focused on continued execution of our plan, disciplined cost management and targeted investment in the areas where Scholastic has the greatest opportunity to drive long-term growth, deepen our impact with children, families and educators, and create sustained value for shareholders.”

Outlook

In fiscal 2027, the Company expects revenue growth of approximately 2% to 4% and Adjusted EBITDA of approximately $135 million to $145 million. The Adjusted EBITDA range represents growth compared with fiscal 2026 Adjusted EBITDA on a comparable basis, reflecting the full-year impact of the sale-leaseback transactions in both periods.

This outlook reflects expected growth in Children’s Books, Entertainment and International, improved performance in Education, disciplined cost management and targeted investment in long-term growth opportunities.

The Company also expects Free Cash Flow (a non-GAAP financial measure, explained in the accompanying tables) of approximately $35 million to $40 million.

Fiscal 2026 Q4 Review

In $ millions (except per share data)

Fourth Quarter

Change

Fiscal 2026

Fiscal 2025

Revenues

476.1

508.3

(32.2)

(6) %

Operating income (loss)

51.4

53.5

(2.1)

(4) %

Earnings (loss) before taxes

14.5

48.9

(34.4)

(70) %

Diluted earnings (loss) per share

0.45

0.59

(0.14)

(24) %

Operating income (loss), ex. one-time items* (1)

58.3

63.4

(5.1)

(8) %

Diluted earnings (loss) per share, ex. one-time items*

2.19

0.87

1.32

152 %

Adjusted EBITDA* (1)

84.7

91.2

(6.5)

(7) %

Pro forma Adjusted operating income* (2)

58.3

59.5

(1.2)

(2) %

Pro forma Adjusted EBITDA* (2)

84.7

83.7

1.0

1 %

* Please refer to the non-GAAP financial tables attached

(1)

Fiscal 2026 fourth-quarter Operating income excluding one-time items and Adjusted EBITDA include
net costs of $4.2 and $7.8, respectively, related to the sale-leaseback transactions completed in
December 2025.

(2)

Pro forma Adjusted operating income and Pro forma Adjusted EBITDA reflect the full-period impact of
the sale-leaseback transactions in each period presented. The Company refers to these measures in
this release as results “on a comparable basis.” See Table 7 for the reconciliation to Adjusted operating
income and Adjusted EBITDA.

Revenues decreased 6% to $476.1 million, as continued growth in Book Fairs and higher Entertainment revenues were more than offset by lower Trade and International revenues due to more challenging comparisons with the prior-year publishing schedule and lower revenues in Education.

Operating Income decreased 4% to $51.4 million in the quarter compared to $53.5 million a year ago, including $6.9 million and $9.9 million in one-time charges in each period, respectively. Excluding one-time charges in both periods, adjusted operating income decreased $5.1 million to $58.3 million. On a comparable basis, reflecting the full-period impact of the sale-leaseback in both periods, adjusted operating income decreased $1.2 million from $59.5 million. Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) was $84.7 million, compared to $91.2 million in the prior-year period. On the same comparable basis, Adjusted EBITDA increased $1.0 million from $83.7 million in the prior year period, primarily reflecting improved profitability in Children’s Book Publishing and Distribution and Entertainment, partly offset by lower results in Education and International.

Quarterly Results

Children’s Book Publishing and Distribution

In the fiscal fourth quarter, the Children’s Book Publishing and Distribution segment’s revenues decreased 4% to $276.3 million.

In School Reading Events, Book Fairs revenues were $186.6 million, up 5% from the prior year period, reflecting higher fair count. Book Clubs revenues were $12.2 million, a decline of 7% from the prior year period, primarily reflecting lower participation throughout the year.

Consolidated Trade revenues decreased 20% from the prior year period to $77.5 million, reflecting a challenging comparison with the prior-year publishing schedule, which included the release of Sunrise on the Reaping, the fifth book in Suzanne Collins’ global bestselling The Hunger Games® series.

Segment operating income was $60.3 million, compared to $57.6 million a year ago, which included one-time charges of $0.6 million. Excluding one-time charges, adjusted operating income increased $2.1 million, primarily driven by higher revenues and improved profitability in Book Fairs, partly offset by lower Trade results.

Education

Education revenues decreased 13% to $109.2 million, primarily reflecting continued pressure on school and district spending for supplemental curriculum materials. Segment operating income was $27.0 million, which included one-time charges of $0.9 million, compared to $30.7 million in the prior year period, which included one-time charges of $0.6 million. Excluding one-time charges, adjusted operating income decreased by $3.4 million, as a result of lower revenues, partly offset by benefits from the segment’s improved cost structure. While fourth-quarter revenues remained below the prior year, the rate of decline improved in the second half of fiscal 2026 compared to the first half of the year, as the segment advanced its product, marketing and sales strategies following its repositioning.

Entertainment

Segment revenues increased 42% to $21.0 million, reflecting higher production services revenues. Segment operating income was $0.4 million, which included one-time charges of $0.4 million, compared to an operating loss of $3.0 million in the prior year period, which included one-time charges of $0.9 million. Excluding one-time charges, adjusted segment operating income improved $2.9 million to $0.8 million, primarily reflecting higher revenues.

International

International revenues decreased 13% to $69.6 million, excluding favorable foreign currency exchange of $3.1 million, primarily reflecting lower Trade revenues against a more challenging comparison with the prior-year publishing schedule. Segment operating income was $2.9 million, which included one-time charges of $0.2 million, compared to $3.7 million in the prior year period, which included one-time charges of $2.4 million. Excluding one-time charges, adjusted operating income decreased by $3.0 million to $3.1 million primarily reflecting lower revenues, partly offset by cost management.

Overhead

Overhead costs were $39.2 million, which included one-time charges of $5.4 million, compared to $35.5 million in the prior year period, which included one-time charges of $5.4 million. Excluding one-time charges, adjusted overhead costs increased $3.7 million to $33.8 million. On a comparable basis, reflecting the pro forma impact of the sale-leaseback transactions in both periods, adjusted overhead costs were approximately in line with the prior-year period.

Fiscal 2026 Full Year Review

In $ millions (except per share data)

Full Year

Change

Fiscal 2026

Fiscal 2025

Revenues

1,581.9

1,625.5

(43.6)

(3) %

Operating income (loss)

15.2

15.8

(0.6)

(4) %

Earnings (loss) before taxes

85.2

(1.3)

86.5

Diluted earnings (loss) per share

2.34

(0.07)

2.41

Operating income (loss), ex. one-time items* (1)

47.1

35.8

11.3

32 %

Diluted earnings (loss) per share, ex. one-time items*

1.87

0.48

1.39

Adjusted EBITDA* (1)

151.5

145.4

6.1

4 %

Pro forma Adjusted operating income* (2)

35.3

19.9

15.4

77 %

Pro forma Adjusted EBITDA* (2)

132.4

115.3

17.1

15 %

* Please refer to the non-GAAP financial tables attached

(1)

Fiscal 2026 full-year Operating income excluding one-time items and Adjusted EBITDA include net costs
of $7.2 and $14.5, respectively, related to the sale-leaseback transactions completed in December 2025.

(2)

Revenues decreased 3% to $1,581.9 million, primarily reflecting lower revenues in Education and lower Consolidated Trade revenues against a more challenging comparison with the prior-year publishing schedule, partly offset by strong performance in Book Fairs and higher Entertainment revenues.

Operating Income decreased 4% to $15.2 million, compared to $15.8 million a year ago, including $31.9 million and $20.0 million in one-time charges in each period, respectively. Excluding one-time charges in both periods, adjusted operating income increased $11.3 million to $47.1 million. On a comparable basis, reflecting the full-year impact of the sale-leaseback transactions in both periods, adjusted operating income increased $15.4 million to $35.3 million, compared to $19.9 million in the prior year. Adjusted EBITDA increased $6.1 million, or 4%, to $151.5 million, in-line with the Company’s guidance. On the same comparable basis, Adjusted EBITDA increased 15%, or $17.1 million, to $132.4 million from $115.3 million. The improvement on a comparable basis primarily reflected strong performance in Children’s Book Publishing and Distribution and International, as well as lower adjusted overhead costs, which more than offset the impact of lower sales in Education.

Capital Position and Liquidity

In $ millions

Full Year

Change

Fiscal 2026

Fiscal 2025

Net cash provided by operating activities

50.9

124.2

(73.3)

(59) %

Net proceeds from sale and lease transactions (1)

452.4

—

452.4

Additions to property, plant and equipment and
prepublication expenditures

(66.3)

(76.7)

10.4

14 %

Net borrowings (repayments) of film related obligations

(1.0)

(18.3)

17.3

95 %

Free cash flow (use)*

436.0

29.2

406.8

Net cash (debt)*

48.9

(136.6)

185.5

136 %

NM – Not Meaningful

* Please refer to the non-GAAP financial tables attached

(1) Excludes tax impact from sale-leaseback transactions.

Net cash provided by operating activities was $50.9 million, compared to $124.2 million in the prior year period, primarily reflecting higher tax payments associated with the sale-leaseback transactions, as well as higher severance-related payments as part of cost savings initiatives. Free cash flow was $436.0 million in fiscal 2026, compared to $29.2 million in the prior year period, primarily reflecting over $400 million in net proceeds from the Company’s sale-leaseback transactions.

The Company ended fiscal 2026 with net cash of $48.9 million compared to a net debt position of $136.6 million at the end of fiscal 2025, primarily reflecting the net proceeds from the sale-leaseback transactions, partly offset by significant capital returns to shareholders.

In fiscal 2026, the Company returned approximately $288.6 million to shareholders through share repurchases and dividends. This included the repurchase of 7,336,966 shares of common stock for $268.6 million, including shares purchased through the Company’s modified Dutch auction tender offer and open-market repurchases, and $20.0 million of dividends, including $4.6 million in the fourth quarter.

At May 31, 2026, $183.0 million remained authorized for future repurchases under the Company’s stock repurchase program. The Company expects to continue purchasing shares, from time to time as conditions allow, on the open market or in negotiated private transactions.

Additional Information

To supplement our financial statements presented in accordance with GAAP, we include certain non-GAAP calculations and presentations including, as noted above, “Adjusted EBITDA, “Adjusted Operating Income”, and “Free Cash Flow”. Please refer to the non-GAAP financial tables attached to this press release for supporting details on the impact of one-time items on operating income, net income and diluted EPS, and the use of non-GAAP financial measures included in this release. This information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

Conference Call

The Company will hold a conference call to discuss its results at 4:30 p.m. ET today, July 23, 2026. Peter Warwick, Scholastic President and Chief Executive Officer, and Haji Glover, the Company’s Chief Financial Officer, Executive Vice President, will moderate the call.

A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/n2mcunuo. To access the conference call by phone, please go to https://register-conf.media-server.com/register/BIe4453c04814b4def819b83eaf92a8731, which will provide dial-in details. To avoid delays, participants are encouraged to dial into the conference call five minutes ahead of the scheduled start time. Shortly following the call, an archived webcast and accompanying slides from the conference call will be posted at investor.scholastic.com.

About Scholastic

For more than 100 years, Scholastic Corporation (NASDAQ: SCHL) has been meeting children where they are – at school, at home and in their communities – by creating quality content and experiences, all beginning with literacy. Scholastic delivers stories, characters, and learning moments that empower all kids to become lifelong readers and learners through bestselling children’s books, literacy- and knowledge-building resources for schools including classroom magazines, and award-winning, entertaining children’s media. As the world’s largest publisher and distributor of children’s books through school-based book clubs and book fairs, classroom libraries, school and public libraries, retail, and online, and with a global reach into more than 135 countries, Scholastic encourages the personal and intellectual growth of all children, while nurturing a lifelong relationship with reading, themselves, and the world around them. Learn more at www.scholastic.com.

Forward-Looking Statements

This news release contains certain forward-looking statements relating to future periods. Such forward-looking statements are subject to various risks and uncertainties, including the conditions of the children’s book and educational materials markets generally and acceptance of the Company’s products within those markets, and other risks and factors identified from time to time in the Company’s filings with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.

SCHL: Financial

Table 1

Scholastic Corporation

Consolidated Statements of Operations

(Unaudited)

(In $ Millions, except shares and per share data)

Three months ended

Twelve months ended

05/31/26

05/31/25

05/31/26

05/31/25

Revenues

476.1

508.3

1,581.9

1,625.5

Operating costs and expenses:

Cost of goods sold

190.4

207.3

689.8

718.8

Selling, general and administrative expenses

219.7

227.8

807.2

822.3

Depreciation and amortization

13.1

17.2

58.8

65.7

Asset impairments and write downs

1.5

2.5

10.9

2.9

Total operating costs and expenses

424.7

454.8

1,566.7

1,609.7

Operating income (loss)

51.4

53.5

15.2

15.8

Interest income (expense), net

(0.9)

(4.3)

(11.2)

(16.0)

Other components of net periodic benefit (cost)

(0.3)

(1.3)

(1.1)

Loss on sale of investments

(17.2)

—

(17.2)

—

Gain (loss) on sale and leaseback transactions

(18.5)

—

99.7

—

Earnings (loss) before income taxes

14.5

48.9

85.2

(1.3)

Provision (benefit) for income taxes

5.1

33.5

28.5

0.6

Net income (loss)

9.4

15.4

56.7

(1.9)

Basic and diluted earnings (loss) per share of Class A and
Common Stock (1)

Basic

0.46

0.59

2.39

(0.07)

Diluted

0.45

0.59

2.34

(0.07)

Basic weighted average shares outstanding

20,343

26,113

23,698

27,631

Diluted weighted average shares outstanding

20,992

26,209

24,222

27,907

(1)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding.
Recalculating earnings per share based on numbers rounded to millions may not yield the results as
presented.

Table 2

Scholastic Corporation

Segment Results, Excluding One-Time Items

(Unaudited)

(In $ Millions)

Three months ended

Change

Twelve months ended

Change

05/31/26

05/31/25

05/31/26

05/31/25

Children’s Book Publishing
and Distribution

Revenues

Book Clubs

12.2

13.1

(0.9)

(7) %

57.1

64.2

(7.1)

(11) %

Book Fairs

186.6

177.8

8.8

5 %

576.0

548.3

27.7

5 %

School Reading Events

198.8

190.9

7.9

4 %

633.1

612.5

20.6

3 %

Consolidated Trade

77.5

97.3

(19.8)

(20) %

331.1

351.4

(20.3)

(6) %

Total Revenues

276.3

288.2

(11.9)

(4) %

964.2

963.9

0.3

0 %

Operating income (loss) ex.
one-time items *

60.3

58.2

2.1

4 %

143.7

131.3

12.4

9 %

Adjusted operating margin *

21.8 %

20.2 %

14.9 %

13.6 %

Education

Revenues

109.2

125.7

(16.5)

(13) %

267.6

309.8

(42.2)

(14) %

Operating income (loss) ex.
one-time items *

27.9

31.3

(3.4)

(11) %

0.2

6.9

(6.7)

(97) %

Adjusted operating margin *

25.5 %

24.9 %

0.1 %

2.2 %

Entertainment

Revenues

21.0

14.8

6.2

42 %

65.7

61.0

4.7

8 %

Operating income (loss) ex.
one-time items *

0.8

(2.1)

2.9

138 %

(9.3)

(7.2)

(2.1)

(29) %

Adjusted operating margin *

3.8 %

International

Revenues

69.6

76.8

(7.2)

(9) %

277.2

279.6

(2.4)

(1) %

Operating income (loss) ex.
one-time items *

3.1

6.1

(3.0)

(49) %

7.1

2.9

4.2

145 %

Adjusted operating margin *

4.5 %

7.9 %

2.6 %

1.0 %

Overhead

Revenues

—

2.8

(2.8)

(100) %

7.2

11.2

(4.0)

(36) %

Operating income (loss) ex.
one-time items *

(33.8)

(30.1)

(3.7)

(12) %

(94.6)

(98.1)

3.5

4 %

Operating income (loss) ex.
one-time items *

58.3

63.4

(5.1)

(8) %

47.1

35.8

11.3

32 %

Adjusted operating margin *

12.2 %

12.5 %

3.0 %

2.2 %

NM – Not meaningful

* Please refer to Table 4 for one-time items and a reconciliation of the non-GAAP financials.

Table 3

Scholastic Corporation

Supplemental Information

(Unaudited)

(In $ Millions)

Selected Balance Sheet Items

05/31/26

05/31/25

Cash and cash equivalents

134.9

124.0

Accounts receivable, net

236.4

273.4

Inventories, net

265.0

250.2

Accounts payable

144.2

157.3

Deferred revenue

179.2

178.8

Accrued royalties

50.3

69.1

Film related obligations

17.1

18.3

Lines of credit and long-term debt

80.5

256.2

Net cash (debt) (1)

48.9

(136.6)

Total stockholders’ equity

750.8

946.5

Selected Cash Flow Items

Three months ended

Twelve months ended

05/31/26

05/31/25

05/31/26

05/31/25

Net cash provided by (used in) operating activities

90.0

106.9

50.9

124.2

Net proceeds from sale and lease transactions (3)

—

452.4

—

Property, plant and equipment additions

(15.0)

(12.3)

(48.4)

(52.2)

Prepublication expenditures

(4.9)

(8.7)

(17.9)

(24.5)

Net borrowings (repayments) of film related obligations

(0.1)

0.3

(1.0)

(18.3)

Free cash flow (use) (2)

70.0

86.2

436.0

29.2

(1)

Net cash (debt) is defined by the Company as cash and cash equivalents less production cash of $5.5
and $4.4 as of May 31, 2026 and May 31, 2025, respectively, net of lines of credit and short-term and
long-term-debt. Film related obligations are not included. The Company utilizes this non-GAAP financial
measure, and believes it is useful to investors, as an indicator of the Company’s effective leverage and
financing needs.

(2)

Free cash flow (use) is defined by the Company as net cash provided by or used in operating activities
(which includes royalty advances) and cash acquired through acquisitions and from the sale of assets,
reduced by spending on property, plant and equipment and prepublication costs and adjusted for net
cash flows from film related obligations. The Company believes that this non-GAAP financial measure
is useful to investors as an indicator of cash flow available for debt repayment and other investing
activities, such as acquisitions. The Company utilizes free cash flow as a further indicator of operating
performance and for planning investing activities.

(3)

Excludes tax impact from sale-leaseback transactions.

Table 4

Scholastic Corporation

Supplemental Results – Excluding One-Time Items

(Unaudited)

(In $ Millions, except per share data)

Three months ended

05/31/2026

05/31/2025

Reported

One-time
items

Excluding
One-time
items

Reported

One-time
items

Excluding
One-time
items

Diluted earnings (loss) per share (1)

0.45

1.79

2.19

0.59

0.29

0.87

Net income (loss) (2)

9.4

36.5

45.9

15.4

7.5

22.9

Earnings (loss) before income taxes (3)

14.5

42.6

57.1

48.9

9.9

58.8

Children’s Book Publishing and
Distribution (4)

60.3

—

60.3

57.6

0.6

58.2

Education (5)

27.0

0.9

27.9

30.7

0.6

31.3

Entertainment(6)

0.4

0.8

(3.0)

0.9

(2.1)

International (7)

2.9

0.2

3.1

3.7

2.4

6.1

Overhead (8)

(39.2)

5.4

(33.8)

(35.5)

5.4

(30.1)

Operating income (loss)

51.4

6.9

58.3

53.5

9.9

63.4

Twelve months ended

05/31/2026

05/31/2025

Reported

One-time
items

Excluding
One-time
items

Reported

One-time
items

Excluding
One-time
items

Diluted earnings (loss) per share (1)

2.34

(0.47)

1.87

(0.07)

0.55

0.48

Net income (loss) (2)

56.7

(11.3)

45.4

(1.9)

15.2

13.3

Earnings (loss) before income taxes (3)

85.2

(50.6)

34.6

(1.3)

20.0

18.7

Children’s Book Publishing and
Distribution (4)

142.9

0.8

143.7

130.7

0.6

131.3

Education (5)

(4.1)

4.3

0.2

6.3

0.6

6.9

Entertainment(6)

(16.1)

6.8

(9.3)

(12.1)

4.9

(7.2)

International (7)

6.4

0.7

7.1

(1.0)

3.9

2.9

Overhead (8)

(113.9)

19.3

(94.6)

(108.1)

10.0

(98.1)

Operating income (loss)

15.2

31.9

47.1

15.8

20.0

35.8

(1)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating
earnings per share based on rounded numbers may not yield the results as presented.

(2)

In the three and twelve months ended May 31, 2026, the Company recognized a benefit of $6.1 and a provision of
$39.3, respectively, for income taxes in respect to one-time pretax items. In the three and twelve months ended May
31, 2025, the Company recognized a benefit of $2.4 and $4.8, respectively, for income taxes in respect to one-time
pretax items.

(3)

In the three and twelve months ended May 31, 2026, the Company recognized a pretax loss of $17.2 related to the
sale of its 26.2% equity interest in a U.K.-based children’s book publishing business. In the three months ended May
31, 2026, the Company recognized an adjustment of $18.5 million to the pretax gain related to the sale-leaseback
transactions. In the twelve months ended May 31, 2026, the Company recognized a pretax gain of $99.7 related to
sale-leaseback transactions involving its facilities in New York City and Jefferson City, Missouri.

(4)

In the twelve months ended May 31, 2026, the Company recognized a pretax asset impairment charge of $0.8 related
to a certain product. In the three and twelve months ended May 31, 2025, the Company recognized a pretax asset
impairment charge of $0.6 related to a digital product.

(5)

In the three and twelve months ended May 31, 2026, the Company recognized pretax asset impairment charges of
$0.9 and $4.3, respectively, related to certain education and digital products. In the three and twelve months ended May
31, 2025, the Company recognized a pretax asset impairment charge of $0.6 related to certain digital products.

(6)

In the three and twelve months ended May 31, 2026, the Company recognized other pretax expenses of $0.4 and $1.4,
respectively. In the twelve months ended May 31, 2026, the Company recognized pretax severance of $0.2 and a pretax
asset impairment charge of $5.2 primarily related to certain film and television programs in development. In the three
and twelve months ended May 31, 2025, the Company recognized pretax severance of $0.3 and $1.4, respectively,
related to cost-savings initiatives, pretax costs of $0.4 and $3.0, respectively, related to the acquisition of 9 Story Media
Group and pretax asset impairment charges of $0.2 and $0.5, respectively, related to the early exit of certain leased
office space in Canada and Ireland.

(7)

In the three and twelve months ended May 31, 2026, the Company recognized pretax severance of $0.2 and $0.7,
respectively, related to cost-savings initiatives. In the three and twelve months ended May 31, 2025, the Company
recognized pretax severance of $1.3 and $2.8, respectively, related to cost-savings initiatives and a pretax asset
impairment charge of $1.1 related to the reorganization in China.

(8)

In the three and twelve months ended May 31, 2026, the Company recognized pretax severance of $3.7 and $15.5,
respectively, related to cost-savings initiatives, and other pretax expenses of $1.7 and $3.8, respectively. In the three
and twelve months ended May 31, 2025, the Company recognized pretax severance of $3.4 and $7.6, respectively,
related to cost-savings initiatives, other pretax expenses of $1.9 and $2.3, respectively, and an asset impairment
charge of $0.1 related to the early exit of an office lease.

Table 5

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA

(Unaudited)

(In $ Millions)

Three months ended

05/31/26

05/31/25

Earnings (loss) before income taxes as reported

14.5

48.9

One-time items before income taxes

42.6

9.9

Earnings (loss) before income taxes excluding one-time items

57.1

58.8

Interest (income) expense (1)

0.9

4.5

Depreciation and amortization

26.7

27.9

Adjusted EBITDA (2)

84.7

91.2

Twelve months ended

05/31/26

05/31/25

Earnings (loss) before income taxes as reported

85.2

(1.3)

One-time items before income taxes

(50.6)

20.0

Earnings (loss) before income taxes excluding one-time items

34.6

18.7

Interest (income) expense (1)

11.6

16.4

Depreciation and amortization

105.3

110.3

Adjusted EBITDA (2)

151.5

145.4

(1)

Amounts include production loan interest amortized into cost of goods sold.

(2)

Adjusted EBITDA is defined by the Company as earnings (loss), excluding one-time items,
before interest, taxes, depreciation and amortization. The Company believes that Adjusted
EBITDA is a meaningful measure of operating profitability and useful for measuring returns
on capital investments over time as it is not distorted by unusual gains, losses, or other
items.

Table 6

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA by Segment

(Unaudited)

(In $ Millions)

Three months ended

05/31/26

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)(4)

Total

Earnings (loss) before income taxes as reported

60.1

27.0

(0.0)

(14.8)

(57.8)

14.5

One-time items before income taxes

—

0.9

0.4

17.4

23.9

42.6

Earnings (loss) before income taxes excluding
one-time items

60.1

27.9

0.4

2.6

(33.9)

57.1

Interest (income) expense (2)

0.2

0.0

0.5

0.0

0.2

0.9

Depreciation and amortization (3)

8.3

6.0

8.0

2.2

26.7

Adjusted EBITDA (4)

68.6

33.9

8.9

4.8

(31.5)

84.7

Three months ended

05/31/25

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

57.5

30.7

(2.9)

2.9

(39.3)

48.9

One-time items before income taxes

0.6

0.9

2.4

5.4

9.9

Earnings (loss) before income taxes excluding
one-time items

58.1

31.3

(2.0)

5.3

(33.9)

58.8

Interest (income) expense (2)

0.1

0.0

0.7

0.1

3.6

4.5

Depreciation and amortization (3)

8.0

6.2

5.0

2.0

6.7

27.9

Adjusted EBITDA

66.2

37.5

3.7

7.4

(23.6)

91.2

Twelve months ended

05/31/26

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)(4)

Total

Earnings (loss) before income taxes as reported

142.5

(4.1)

(17.9)

(12.9)

(22.4)

85.2

One-time items before income taxes

0.8

4.3

6.8

17.9

(80.4)

(50.6)

Earnings (loss) before income taxes excluding
one-time items

143.3

0.2

(11.1)

5.0

(102.8)

34.6

Interest (income) expense (2)

0.4

0.0

2.2

0.1

8.9

11.6

Depreciation and amortization (3)

31.2

24.9

24.4

8.1

16.7

105.3

Adjusted EBITDA (4)

174.9

25.1

15.5

13.2

(77.2)

151.5

Twelve months ended

05/31/25

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

130.5

6.3

(14.3)

(3.1)

(120.7)

(1.3)

One-time items before income taxes

0.6

4.9

3.9

10.0

20.0

Earnings (loss) before income taxes excluding
one-time items

131.1

6.9

(9.4)

0.8

(110.7)

18.7

Interest (income) expense (2)

0.2

0.0

3.2

0.1

12.9

16.4

Depreciation and amortization (3)

31.1

24.8

21.5

7.9

25.0

110.3

Adjusted EBITDA

162.4

31.7

15.3

8.8

(72.8)

145.4

(1)

The Company’s segments are defined as the following: CBPD – Children’s Book Publishing and Distribution
segment; EDUC – Education segment; ENT – Entertainment segment; INTL – International segment; OVH –
unallocated overhead.

(2)

Amounts include production loan interest amortized into cost of goods sold.

(3)

Depreciation and amortization in the Children’s Book Publishing and Distribution, Education and International
segments includes amounts allocated from overhead.

(4)

Adjusted EBITDA for unallocated overhead and total includes the net cost impact of the sale-leaseback
transactions of $7.8 and $14.5 for the three and twelve months ended May 31, 2026, respectively.

Table 7

Scholastic Corporation

Pro Forma Supplemental Information

(Unaudited)

(In $ Millions)

Three months ended

Change

05/31/26

05/31/25

Adjusted unallocated overhead

(33.8)

(30.1)

(3.7)

(12) %

Incremental full-year impact of sale-leaseback transactions

—

(3.9)

3.9

Pro forma Adjusted unallocated overhead (1)

(33.8)

(34.0)

0.2

1 %

Adjusted operating income

58.3

63.4

(5.1)

(8) %

Incremental full-year impact of sale-leaseback transactions

—

(3.9)

3.9

Pro forma Adjusted operating income (1) (2)

58.3

59.5

(1.2)

(2) %

Adjusted EBITDA

84.7

91.2

(6.5)

(7) %

Incremental full-year impact of sale-leaseback transactions

—

(7.5)

7.5

Pro forma Adjusted EBITDA (1) (2)

84.7

83.7

1.0

1 %

Twelve months ended

Change

05/31/26

05/31/25

Adjusted unallocated overhead

(94.6)

(98.1)

3.5

4 %

Incremental full-year impact of sale-leaseback transactions

(11.8)

(15.9)

4.1

Pro forma Adjusted unallocated overhead (1)

(106.4)

(114.0)

7.6

7 %

Adjusted operating income

47.1

35.8

11.3

32 %

Incremental full-year impact of sale-leaseback transactions

(11.8)

(15.9)

4.1

Pro forma Adjusted operating income (1) (2)

35.3

19.9

15.4

77 %

Adjusted EBITDA

151.5

145.4

6.1

4 %

Incremental full-year impact of sale-leaseback transactions

(19.1)

(30.1)

11.0

Pro forma Adjusted EBITDA (1) (2)

132.4

115.3

17.1

15 %

(1)

Pro forma Adjusted unallocated overhead, Pro forma Adjusted operating income and Pro forma Adjusted
EBITDA reflect the net impacts of the sale-leaseback transactions as if the transactions had occurred on
June 1, 2024, the beginning of fiscal 2025. Fiscal 2026 reported results include the actual impact beginning
upon completion of the transactions in December 2025. The incremental adjustments shown above reflect
the additional impact for the portion of fiscal 2026 prior to completion of the transactions. Fiscal 2025
reported results include no impact from the transactions.

(2)

For fiscal 2026, the full-year pro forma cost impact was $19.0 on Adjusted operating income, consisting of
$7.2 recognized in reported fiscal 2026 results and $11.8 of incremental adjustments. For fiscal 2026, the
full-year pro forma cost impact on Adjusted EBITDA was $33.6, consisting of $14.5 recognized in reported
fiscal 2026 results and $19.1 of incremental adjustments. For fiscal 2025, the full-year pro forma cost
impacts were $15.9 on Adjusted operating income and $30.1 on Adjusted EBITDA.

View original content to download multimedia:https://www.prnewswire.com/news-releases/scholastic-reports-fourth-quarter-and-fiscal-2026-results-302833617.html

SOURCE Scholastic Corporation