1329 ET - Lockheed Martin appears to have inadequate control and oversight of its big-budget programs, which it had previously assured investors were substantially derisked, Gimme Credit's Carol Levenson says in a note. Those signals are even more disturbing than the size of its 2Q write-downs on those programs, Levenson says. Management says the losses were driven by its new CFO coming in and giving the programs additional scrutiny, but Levenson finds that explanation unsatisfying. "Charges of this magnitude should not arise because of one personnel change," she says. Lockheed also revealed that the IRS in May sought $4.6 billion in additional income taxes related to accounting changes in 2018--that should have been disclosed when the notice was received, not two months later, Levenson says. (dean.seal@wsj.com)

(END) Dow Jones Newswires

July 24, 2025 13:29 ET (17:29 GMT)

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