Lockheed Martin Corp. caught investors off guard with $1.6 billion in charges and a possible tax hit that sent its stock tumbling, the latest setback for the defense giant whose popular F-35 jet faces criticism over cost overruns and delays.

Lockheed Martin reported on Tuesday that its second-quarter profit plunged by about 80%, after the U.S. defense group recorded a pretax loss of $1.6 billion, mainly linked to a classified program within its Aeronautics segment,

The company also cut its 2025 operating profit outlook by $1.5 billion to $6.65 billion. The charge included $950 million related to the undisclosed program and $570 million connected to issues with Canada's CH-148 Cyclone helicopter deal.