Lockheed Martin reported a staggering 80% drop in second-quarter profit, primarily due to pre-tax losses of $1.6 billion linked to a classified program in its Aeronautics segment. The company's net income fell to $342 million, or $1.46 per share, compared to $1.64 billion, or $6.85 per share, a year earlier. This significant decline in earnings has led to an 8% drop in the company's shares during premarket trading, indicating investor concern over the company's financial health and operational challenges.

The losses were attributed to difficulties with a classified program and issues in international helicopter programs within its Sikorsky unit. These setbacks not only impact Lockheed Martin's immediate financial performance but also raise questions about the effectiveness of its project management and operational execution. The company's ability to recover from these losses and restore investor confidence will be critical in the coming quarters, especially as it navigates a competitive defense industry landscape.