Compare · Industrials
Lockheed Martin vs. Northrop Grumman: how they make money
The same facts for both companies, in the same order, from each company's own page and filings. This is not a ranking and says nothing about which share to own.
Each company in 5 points
Lockheed Martin
1 · What it sells
Lockheed Martin builds F-35 fighters, missiles, Sikorsky helicopters and space systems for governments, with sales of $75,048 million in FY2025.
Sources and detail on the Lockheed Martin page2 · Who pays it
In FY2025 the US government paid 71.2% of Lockheed Martin's sales, international customers 28.4% and US commercial and other customers 0.4%.
Sources and detail on the Lockheed Martin page3 · What it keeps from $100
Of every $100 that came in during FY2025, Lockheed Martin kept $6.66 as net income after a one-off $479 million pension settlement charge outside operations, and its operating profit was $10.30 per $100 of sales.
Sources and detail on the Lockheed Martin page4 · Where the operating profit comes from
In FY2025, as Lockheed Martin measures segment profit, Aeronautics earned $2,086 million, Missiles and Fire Control $1,989 million, Space $1,345 million and Rotary and Mission Systems $1,323 million.
Sources and detail on the Lockheed Martin page5 · The one thing to watch
The F-35 was 27% of FY2025 sales, and in Q3 2026 Lockheed Martin's costs on the F-35 Lot 20 advance contract began to exceed its authorized funding.
Sources and detail on the Lockheed Martin page
Northrop Grumman
1 · What it sells
Northrop Grumman builds the B-21 bomber, the Sentinel missile, rocket motors, radars and satellites, with sales of $41,954 million in FY2025.
Sources and detail on the Northrop Grumman page2 · Who pays it
In FY2025 the US government paid 83.9% of Northrop Grumman's sales, international customers 14.3% and other customers 1.9%.
Sources and detail on the Northrop Grumman page3 · What it keeps from $100
Of every $100 that came in during FY2025, Northrop Grumman kept $9.63 as net income, helped by $1,068 million of pension benefits outside operations and a one-off $231 million gain, and its operating income was $10.75 per $100 of sales.
Sources and detail on the Northrop Grumman page4 · Where the operating profit comes from
In FY2025, as Northrop Grumman measures segment profit, Mission Systems earned $1,827 million, Space Systems $1,183 million, Defense Systems $871 million and Aeronautics Systems $813 million after a $477 million B-21 loss provision.
Sources and detail on the Northrop Grumman page5 · The one thing to watch
B-21 loss provisions have totaled about $2.0 billion since 2023, and $1.0 billion of expected B-21 losses was still accrued on Sep 30, 2026.
Sources and detail on the Northrop Grumman page
Where each $100 went
Each company's own receipt for its latest full fiscal year, with matching lines in the same order where both have them.
Lockheed Martin
Where $100 went · FY2025
| Interest on debt | $1.5 |
|---|---|
| Cost of sales | $89.5 |
| Non-service pension cost (incl. one-off charge) | $1.2 |
| Income tax | $1.2 |
| Kept as net income | $6.7 |
| Total | $100 |
Of every $100 that came in during FY2025 (sales $75,048 million + other income $295 million = $75,343 million). Cityfort calculation from FY2025 10-K. The pension line includes a one-off $479 million settlement charge, $0.64 per $100. Operating profit was $10.30 per $100 of sales.
Northrop Grumman
Where $100 went · FY2025
| Interest on debt | $1.5 |
|---|---|
| Cost of products | $62.9 |
| Cost of services | $14.7 |
| General and administrative | $9.3 |
| Income tax | $2.0 |
| Kept as net income | $9.6 |
| Total | $100 |
Of every $100 that came in during FY2025 (sales $41,954 million + other income $1,453 million = $43,407 million). Cityfort calculation from FY2025 10-K. Other income includes $1,068 million of pension benefits outside operations ($541 million FAS pension benefit and a $527 million mark-to-market gain) and a one-off $231 million gain, together $2.99 per $100. Operating income was $10.75 per $100 of sales.
Line items differ because each company groups its costs its own way in its filings. Only on Lockheed Martin's receipt: Cost of sales; Non-service pension cost (incl. one-off charge). Only on Northrop Grumman's receipt: Cost of products; Cost of services; General and administrative.
Revenue, net income and free cash flow
Up to five fiscal years for each company, drawn on one shared scale per measure. Amounts in US$ as reported (GAAP).
Revenue
Lockheed Martin
Northrop Grumman
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Net income
Lockheed Martin
Northrop Grumman
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Free cash flow
Lockheed Martin
Northrop Grumman
See the numbers
Who pays each company
Lockheed Martin
- US government · 71.2% of revenueMostly the Department of War, plus agencies such as NASA. Sales were $53,412 million in FY2025.
- International governments · 28.4% of revenueAllied governments. About 77% of these sales were foreign military sales contracted through the US government, and about 23% direct sales. Sales were $21,343 million in FY2025.
- US commercial and other · 0.4% of revenueSales of $293 million in FY2025.
Northrop Grumman
- US government · 83.9% of revenueMostly the Department of War (the 10-K's name for the Department of Defense) and intelligence agencies. Sales were $35,183 million in FY2025. Space Systems sold 93% of its work to the US government.
- International customers · 14.3% of revenueCustomers outside the US government, as the 10-K reports them. Sales were $5,990 million in FY2025.
- Other customers · 1.9% of revenueSales of $781 million in FY2025.
Revenue by segment
Lockheed Martin
FY2025
| Segment | Revenue | Share |
|---|---|---|
| Aeronautics | $30.3B | 40.3% |
| Rotary and Mission Systems | $17.3B | 23.1% |
| Missiles and Fire Control | $14.5B | 19.3% |
| Space | $13.0B | 17.4% |
Northrop Grumman
FY2025
| Segment | Revenue | Share |
|---|---|---|
| Aeronautics Systems | $13.0B | 29.3% |
| Defense Systems | $8.0B | 18.1% |
| Mission Systems | $12.5B | 28.2% |
| Space Systems | $10.8B | 24.3% |
Debt and cash
Lockheed Martin
- Debt
- $20.5B
- Cash and investments
- $6.0B
On Sep 27, 2026.
Net debt of $14,538 million on Sep 27, 2026 equals about 1.7 years of FY2025 operating cash flow ($8,557 million).
Northrop Grumman
- Debt
- $15.2B
- Cash and investments
- $3.7B
On Sep 30, 2026.
Net debt of $11,453 million on Sep 30, 2026 equals about 2.4 years of FY2025 operating cash flow ($4,757 million).
Sources: Lockheed Martin S10, S6, S1, S21 · Northrop Grumman S3, S1, S23
Who owns each company
Lockheed Martin
- One class of shares.
- Officers and directors as a group: 0.1% of shares (as of Mar 2, 2026).
- State Street: 14.9% (as of Jan 30, 2024).
- BlackRock: 7.4% (as of Jan 26, 2024).
- Vanguard Capital Management: 7.0% (as of Apr 30, 2026).
Northrop Grumman
- One class of shares.
- Officers and directors as a group: 0.2% of shares (as of Mar 20, 2026).
- State Street: 9.8% (as of Jan 30, 2024).
- BlackRock: 7.5% (as of Nov 12, 2024).
- Vanguard Capital Management: 7.2% (as of Apr 30, 2026).
- 1 more holders on the Northrop Grumman page.
Sources: Lockheed Martin S18, S6, S20, S19 · Northrop Grumman S14, S3, S16, S15
Risks only one page tracks
Risks whose type the other company's page does not list. Both pages track risks of these types: customer or supplier concentration, execution, regulation. Every risk is on each company's page.
Lockheed Martin
- Pension costs (other)Non-service pension cost was $874 million in FY2025, including a $479 million settlement charge when $943 million of obligations moved to insurers. Accrued pension liabilities were $3,938 million on Sep 27, 2026.
Northrop Grumman
- Budget delays and shutdowns (demand)The 10-K says delayed or reduced appropriations, continuing resolutions, government shutdowns or a breach of the debt ceiling could delay or cut payments and new contracts.
- Pension accounting moves profit (other)Northrop Grumman books pension gains or losses each fourth quarter: a $527 million gain in FY2025, after a $422 million loss in FY2023. A non-operating pension benefit added another $541 million in FY2025.
- Environmental cleanup at Bethpage (legal cases)The environmental accrual was $554 million on Sep 30, 2026, with a reasonably possible $403 million more, and the company faces lawsuits and a putative class action over Bethpage, New York contamination. Of the accrual, $511 million is recorded as recoverable through government overhead costs.
Key facts
- How does Lockheed Martin make money compared with Northrop Grumman?
- Lockheed Martin's revenue by segment in FY2025: Aeronautics 40.3%, Rotary and Mission Systems 23.1%, Missiles and Fire Control 19.3%, Space 17.4%. Northrop Grumman's revenue by segment in FY2025: Aeronautics Systems 29.3%, Defense Systems 18.1%, Mission Systems 28.2%, Space Systems 24.3%.
- Which is bigger by revenue, Lockheed Martin or Northrop Grumman?
- Lockheed Martin reported $75.0B of revenue in FY2025, and Northrop Grumman reported $42.0B in FY2025.
- How much net income did Lockheed Martin and Northrop Grumman report?
- Lockheed Martin reported net income of $5.0B in FY2025, and Northrop Grumman reported $4.2B in FY2025.
- How much of every $100 did Lockheed Martin and Northrop Grumman keep as net income?
- Lockheed Martin kept $6.7 of every $100 that came in during FY2025, and Northrop Grumman kept $9.6 in FY2025 (Cityfort calculation from each company's annual report).
- How much debt and cash do Lockheed Martin and Northrop Grumman have?
- Lockheed Martin had $20.5B of debt and $6.0B of cash and investments on Sep 27, 2026. Northrop Grumman had $15.2B of debt and $3.7B of cash and investments on Sep 30, 2026.
- When do Lockheed Martin's and Northrop Grumman's fiscal years end?
- Lockheed Martin: Fiscal year ends on December 31. Northrop Grumman: Fiscal year ends on December 31.
Sources: Lockheed Martin S3, S1, S10, S6, S21 · Northrop Grumman S2, S1, S3, S23
Built from each company's page. Lockheed Martin updated Nov 7, 2026; Northrop Grumman updated Nov 7, 2026.
Sources
Lockheed Martin
- S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025), Lockheed Martin Corporation (SEC EDGAR), Jan 29, 2026
- S3Form 10-K, fiscal year 2023 (ended Dec 31, 2023), Lockheed Martin Corporation (SEC EDGAR), Jan 23, 2024
- S6Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026), Lockheed Martin Corporation (SEC EDGAR), Oct 22, 2026
- S10Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026), Lockheed Martin Corporation (SEC EDGAR), Oct 22, 2026
- S182026 proxy statement (DEF 14A), Lockheed Martin Corporation (SEC EDGAR), Mar 26, 2026
- S19Schedule 13G/A (Amendment No. 9) by The Vanguard Group, event date Mar 13, 2026, The Vanguard Group (SEC EDGAR), Mar 27, 2026
- S20Schedule 13G by Vanguard Capital Management, event date Mar 31, 2026, Vanguard Capital Management (SEC EDGAR), Apr 30, 2026
- S21Form 8-K filed Aug 28, 2026: new 364-day revolving credit agreement and extension of the 5-year facility (Item 1.01), Lockheed Martin Corporation (SEC EDGAR), Aug 28, 2026
Northrop Grumman
- S1Form 10-K for fiscal 2025 (year ended Dec 31, 2025), Northrop Grumman Corporation (SEC EDGAR), Jan 27, 2026
- S2Form 10-K for fiscal 2023 (year ended Dec 31, 2023), Northrop Grumman Corporation (SEC EDGAR), Jan 25, 2024
- S3Form 10-Q for Q3 2026 (quarter ended Sep 30, 2026), Northrop Grumman Corporation (SEC EDGAR), Oct 20, 2026
- S142026 proxy statement (DEF 14A), Northrop Grumman Corporation (SEC EDGAR), Apr 3, 2026
- S15Schedule 13G/A by The Vanguard Group (event Mar 13, 2026), The Vanguard Group (SEC EDGAR), Mar 27, 2026
- S16Schedule 13G by Vanguard Capital Management (as of Mar 31, 2026), Vanguard Capital Management (SEC EDGAR), Apr 30, 2026
- S23XBRL company facts (data.sec.gov API), CIK 0001133421, SEC EDGAR, Nov 7, 2026
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