Industrials · NYSE: LMT
Lockheed Martin: how the business works
Lockheed Martin builds F-35 fighter jets, missiles, Sikorsky helicopters and satellites, mostly for the US government, with sales of $75.0 billion in FY2025.
By Hardik Bhandare · Checked against filings: . Editorial policy. Corrections
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Lockheed Martin Corporation · Bethesda, Maryland · Founded 1995
Updated for Q3 FY2026 · checked
- Sales, FY2025
- $75.0B
- Net income, FY2025
- $5.0B
- Share of sales from the US government, FY2025
- 71.2%
- F-35 program's share of sales, FY2025
- 27%
- Employees, end of FY2025
- About 123,000
The short version
Lockheed Martin in 5 points
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.
2 · 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%.
3 · 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.
4 · 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.
5 · 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: From Lockheed Martin's FY2025 10-K and Q3 FY2026 10-Q · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025
Where does $100 of Lockheed Martin's money go?
Lockheed Martin · FY2025
Receipt for every $100
| Cost of sales | $89.5 |
|---|---|
| Interest on debt | $1.5 |
| Non-service pension cost (incl. one-off charge) | $1.2 |
| Income tax | $1.2 |
| Kept as net income | $6.7 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
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.
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02The business in one line
What does Lockheed Martin do?
The US government and allied governments pay Lockheed Martin to design, build and support aircraft, missiles and space systems under long contracts; most of the money goes on doing that work, and what's left is profit.
- In FY2025 the US government paid 71.2% of Lockheed Martin's $75,048 million of sales, and international customers paid 28.4%.
- Running costs took $89.50 of every $100 that came in during FY2025, and Lockheed Martin kept $6.66 as net income.
03Who pays it
Who pays Lockheed Martin?
US government
71%
of revenue
Mostly the Department of War, plus agencies such as NASA. Sales were $53,412 million in FY2025.
International governments
28%
of revenue
Allied 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%
of revenue
Sales of $293 million in FY2025.
- US government71%
- International governments28%
- US commercial and other0%
Customer concentration
The US government is one customer for 71.2% of FY2025 sales in the 10-K's sales table. The 10-K's text gives 72%, including 63% from the Department of War, without stating the basis. International sales are not split by country.
- Largest customer
- 71%
04Why it makes money
Why does Lockheed Martin make money?
Long contracts make sales steady, but fixed-price programs can bring large losses.
Lockheed Martin works through a backlog of signed contracts: $193.6 billion at Dec 31, 2025, with about 37% expected as sales within 12 months. On fixed-price contracts, 60.2% of FY2025 sales, the price is set up front, so cost overruns cut profit. Reach-forward losses (expected program losses booked early) were $1,965 million in FY2024 and $1,615 million in FY2025.
Operating profit per $100 of sales
$13.6$10.3
FY2021 to FY2025
- Governments fund programs and sign multi-year contracts
- Contracts add to the backlog of future sales
- Engineers, plants and suppliers build and support the systems
- Sales are recognized as the work is done
- Costs above a fixed price become losses; savings add profit
- Profit pays for research, dividends and buybacks
↺ Step 6 feeds back into step 1.
05Business segments · FY2025
Which businesses make up Lockheed Martin?
Aeronautics
40%Military aircraft, led by the F-35. Segment operating profit, as Lockheed measures it, was $2,086 million in FY2025, a 6.9% margin, after a $950 million loss on a classified program.
Revenue $30.3B · Operating profit $2.1B
Rotary and Mission Systems
23%Sikorsky helicopters, ship combat systems and radars. Segment operating profit was $1,323 million in FY2025, after losses of $570 million on the Canadian Maritime Helicopter Program and $95 million on the Turkish Utility Helicopter Program.
Revenue $17.3B · Operating profit $1.3B
Missiles and Fire Control
19%Missile-defense interceptors and strike missiles. Segment operating profit was $1,989 million in FY2025, a 13.8% margin, up from $413 million in FY2024, when a classified program lost about $1.4 billion.
Revenue $14.5B · Operating profit $2.0B
Space
17%Submarine-launched missiles, satellites, missile defense and NASA's Orion, plus 50% of United Launch Alliance. Segment operating profit was $1,345 million in FY2025, a 10.3% margin.
Revenue $13.0B · Operating profit $1.3B
How the mix changed
- Aeronautics
- Rotary and Mission Systems
- Missiles and Fire Control
- Space
Revenue by segment, FY2021 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has Lockheed Martin done?
Revenue
$75.0BFY2025
Sales rose each year from $65,984 million in FY2022 to $75,048 million in FY2025, and Q3 FY2026 sales were $20,711 million, up from $18,609 million a year earlier (Q1 FY2026 had 12 weeks against 13).
US$
See the numbers
Net profit
$5.0BFY2025
Net income fell from $6,920 million in FY2023 to $5,017 million in FY2025, and the two low quarters, Q4 FY2024 ($527 million) and Q2 FY2025 ($342 million), carried program losses of $1.7 billion and $1.6 billion before tax.
US$
See the numbers
Profit kept per $100 of revenue
$6.7FY2025
Net margin was 6.7% in FY2025, down from 10.2% in FY2023, after program losses and a $479 million pension settlement charge.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$6.9BFY2025
Free cash flow (operating cash flow minus capital spending) was $6,908 million in FY2025, up from $5,287 million in FY2024, when pension contributions were $990 million.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Fiscal year ends on December 31; the first three quarters end on the last Sunday of March, June and September). Net profit is the share belonging to the company's owners.
Download Lockheed Martin's yearly and quarterly numbers (CSV, with source ids)
Learn: Stock-based compensation and dilution: pay that becomes shares
Sources (12)
- Form 10-K, fiscal year 2023 (ended Dec 31, 2023)
- Form 10-K, fiscal year 2025 (ended Dec 31, 2025)
- Q4 and full-year 2024 earnings release (8-K Exhibit 99.1, Jan 28, 2025)
- Q4 and full-year 2025 earnings release (8-K Exhibit 99.1, Jan 29, 2026)
- Q1 2025 earnings release (8-K Exhibit 99.1, Apr 22, 2025)
- Q2 2025 earnings release (8-K Exhibit 99.1, Jul 22, 2025)
- Q3 2025 earnings release (8-K Exhibit 99.1, Oct 21, 2025)
- Form 10-Q, Q3 FY2025 (quarter ended Sep 28, 2025)
- Q1 2026 earnings release (8-K Exhibit 99.1, Apr 23, 2026)
- Q2 2026 earnings release (8-K Exhibit 99.1, Jul 23, 2026)
- Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026)
- Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026)
07Who runs it
Who runs Lockheed Martin, and did they deliver?
James D. Taiclet
Chairman, President and Chief Executive Officer
Evan T. Scott
Chief Financial Officer · since 2025
Became CFO on Apr 17, 2025, succeeding Jesus "Jay" Malave.
What they said, and what happened
2 delivered · 1 missed · 2 too early to tell
Said on Jan 28, 2025
Lockheed Martin said on Jan 28, 2025 that it expected FY2025 sales of about $73.75–74.75 billion.
DeliveredWhat happened
FY2025 sales were $75,048 million, above the range.
Said on Jan 28, 2025
Lockheed Martin said on Jan 28, 2025 that it expected FY2025 diluted EPS of about $27.00–27.30.
MissedWhat happened
Diluted EPS was $21.49, after $1.6 billion of program losses in Q2 FY2025 and a $479 million pension settlement charge in Q4.
Said on Jan 28, 2025
Lockheed Martin said on Jan 28, 2025 that it expected FY2025 free cash flowCash from operations minus spending on buildings and equipment. Learn more, its own measure, of about $6.6–6.8 billion.
DeliveredWhat happened
Free cash flow was $6,908 million.
Said on Jan 29, 2026
Lockheed Martin said on Jan 29, 2026 that it expected FY2026 sales of $77.5–80.0 billion.
Too early to tellWhat happened
It raised the range in July and October 2026, to about $80.0–82.0 billion on Oct 22. Sales in Q1 to Q3 FY2026 were $18,021 million, $20,063 million and $20,711 million.
Said on Oct 22, 2026
Lockheed Martin said it expected its $3.45 billion purchase of Ultra Maritime, agreed in July 2026, to close in Q4 2026.
Too early to tellWhat happened
Not closed as of the Q3 FY2026 10-Q.
Sources (8)
- Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026)
- Form 8-K filed Apr 17, 2025: CFO appointment of Evan Scott (Exhibit 99 news release)
- Q4 and full-year 2024 earnings release (8-K Exhibit 99.1, Jan 28, 2025)
- Q4 and full-year 2025 earnings release (8-K Exhibit 99.1, Jan 29, 2026)
- Q2 2025 earnings release (8-K Exhibit 99.1, Jul 22, 2025)
- Q1 2026 earnings release (8-K Exhibit 99.1, Apr 23, 2026)
- Q2 2026 earnings release (8-K Exhibit 99.1, Jul 23, 2026)
- Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026)
08What could go wrong
What could go wrong for Lockheed Martin?
- Concentration
One customer pays most of the bills
Lockheed Martin's FY2025 10-K says 72% of its FY2025 sales came from the US government, including 63% from the Department of War. Shifts in defense priorities, budget delays or cuts would hit sales.
Watch US defense budget decisions and the US government share of sales in the FY2026 10-K.
- Concentration
Dependence on the F-35
The F-35 was 27% of FY2025 sales. In Q3 2026 Lockheed Martin's costs on the Lot 20 advance contract began to exceed the funding authorized so far, and it said results and cash flows will be hurt without more funding.
Watch F-35 Lot 20 contract funding and quarterly F-35 deliveries (43 in Q3 FY2026).
- Execution
Losses on fixed-price programs
60.2% of FY2025 sales came from fixed-price contracts, where Lockheed Martin bears cost overruns. Reach-forward losses were $1,965 million in FY2024 and $1,615 million in FY2025, and the first nine months of FY2026 brought unfavorable adjustments of $170 million on the F-16 and $175 million on the C-130.
Watch Program charges in each quarterly release, and the classified-program loss reserves ($394 million at Aeronautics on Sep 27, 2026).
- Execution
United Launch Alliance
ULA, 50% owned with Boeing, had Vulcan rocket performance problems in Q1 2026. Lockheed Martin guaranteed up to $750 million of ULA borrowings in Q3 2026 and expects to provide more support.
Watch Further ULA guarantees or funding, and the $578 million carrying value of the investment.
- Regulation
International sales and export approvals
International customers were 28% of FY2025 sales. On the Turkish Utility Helicopter program, Lockheed Martin says up to about $115 million more could be lost if export licenses are denied.
Watch Export license decisions and the international share of sales.
- Other
Pension costs
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.
Watch Pension charges and contributions in the FY2026 10-K.
09Both sides
What do supporters and critics point to?
What supporters point to
- Backlog was $291,984 million on Sep 27, 2026, up from $193,622 million on Dec 31, 2025.
- Missiles and Fire Control sales were $4,501 million in Q3 FY2026, up 24% from a year earlier.
- Free cash flow was $6,908 million in FY2025, and the quarterly dividend was raised to $3.60 for Q4 2026.
- Lockheed Martin raised its FY2026 sales range in July and again in October 2026, to about $80.0–82.0 billion.
What critics point to
- Net income fell from $6,920 million in FY2023 to $5,017 million in FY2025, after program losses of $2.0 billion in FY2024 and $1.6 billion in Q2 FY2025.
- The US government paid 71.2% of FY2025 sales, and the F-35 alone was 27%.
- Costs on the F-35 Lot 20 advance contract began to exceed its authorized funding in Q3 2026.
- About 23% of the Sep 27, 2026 backlog was expected as sales within 12 months, down from about 37% at Dec 31, 2025.
- Debt of $20,498 million on Sep 27, 2026 was 2.04 times stockholders' equity of $10,063 million.
10What to watch next
What should you watch next at Lockheed Martin?
Next event
Q4 FY2026 results
Date not announced yet.
F-35 Lot 20 funding
Lockheed Martin said its Lot 20 advance contract costs exceeded authorized funding in Q3 2026, and results will be hurt without more funding.
Ultra Maritime closing
The $3.45 billion cash purchase was expected to close in Q4 2026.
United Launch Alliance
Lockheed Martin guaranteed up to $750 million of ULA borrowings in Q3 2026 and expects to provide more support.
11Key facts
Key facts about Lockheed Martin
- What does Lockheed Martin do?
- Lockheed Martin designs and builds military aircraft such as the F-35 fighter, missiles and missile-defense systems, Sikorsky helicopters, and satellites and other space systems. Its sales were $75,048 million in FY2025.
- How does Lockheed Martin make money?
- Lockheed Martin makes money on contracts to build, upgrade and support weapons and space systems. In FY2025, 71.2% of its $75,048 million of sales came from the US government and 28.4% from international customers. Products were 83.5% of sales and services 16.5%.
- Is Lockheed Martin profitable?
- Yes. Lockheed Martin's net income was $5,017 million in FY2025, down from $6,920 million in FY2023, after program losses and a $479 million pension settlement charge. Its net income was $1,845 million in Q3 FY2026.
- What is Lockheed Martin's revenue by segment?
- Lockheed Martin had $75,048 million of sales in FY2025. Aeronautics brought in $30,257 million, Rotary and Mission Systems $17,312 million, Missiles and Fire Control $14,450 million and Space $13,029 million.
- Who are Lockheed Martin's customers?
- Lockheed Martin's FY2025 10-K says it derived 72% of its FY2025 sales from the US government, including 63% from the Department of War. International customers were 28% of sales; about 77% of those sales were foreign military sales contracted through the US government.
- Who owns Lockheed Martin?
- Lockheed Martin has one class of common stock with one vote per share. Its 2026 proxy lists State Street with 14.9%, including shares it holds as trustee for Lockheed Martin's benefit plans, and BlackRock with 7.4%, both from filings as of Dec 31, 2023. Vanguard Capital Management reported 6.99% at Mar 31, 2026.
- How big is the F-35 program for Lockheed Martin?
- The F-35 fighter was Lockheed Martin's largest program, at 27% of its FY2025 sales and 67% of its Aeronautics segment's sales. Lockheed Martin delivered 191 F-35s in 2025 and 1,387 production F-35s from the program's start to Sep 27, 2026.
- What does Lockheed Martin's Missiles and Fire Control segment sell?
- Lockheed Martin's Missiles and Fire Control segment sells missile-defense systems such as PAC-3 and THAAD, and rocket and strike missiles such as GMLRS, PrSM, JASSM and Hellfire. Its sales were $14,450 million in FY2025, up from $11,253 million in FY2023.
- What does Lockheed Martin's Rotary and Mission Systems segment sell?
- Lockheed Martin's Rotary and Mission Systems segment builds Sikorsky helicopters such as the Black Hawk, Seahawk and CH-53K, plus the Aegis naval combat system, radars and training systems. Its sales were $17,312 million in FY2025.
- What does Lockheed Martin's Space segment sell?
- Lockheed Martin's Space segment builds the Trident II D5 submarine-launched missile, missile-warning and GPS III satellites, the Next Generation Interceptor and NASA's Orion crew vehicle, and owns 50% of United Launch Alliance. Its sales were $13,029 million in FY2025.
Sources (6)
- Form 10-K, fiscal year 2025 (ended Dec 31, 2025)
- Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026)
- 2026 proxy statement (DEF 14A)
- Schedule 13G by Vanguard Capital Management, event date Mar 31, 2026
- Q4 and full-year 2025 earnings release (8-K Exhibit 99.1, Jan 29, 2026)
- Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026)
Terms on this page
- Backlog
- Capital expenditures (capex)
- Customer concentration
- Debt-to-equity
- Earnings per share (EPS)
- EBITDA
- Free cash flow
- Interest coverage
- Market cap
- Net debt
Each explains the term in plain English, with the same number from other companies on Cityfort.
Go deeper
More detail from the same filings. Open any section.
12What it sells
12What it sells
What does Lockheed Martin sell?
Military aircraft (Aeronautics)
The F-35 stealth fighter, the C-130 transport plane, the F-16 fighter and support for the F-22. The F-35 was 67% of the segment's FY2025 sales of $30,257 million.
Missiles and missile defense (Missiles and Fire Control)
PAC-3 and THAAD interceptors that shoot down incoming missiles, and rockets and strike missiles such as GMLRS, PrSM, JASSM, LRASM and Hellfire. Sales were $14,450 million in FY2025.
Helicopters, ship systems and radars (Rotary and Mission Systems)
Sikorsky Black Hawk, Seahawk and CH-53K helicopters, the Aegis combat system on navy ships, radars, and training and cyber work. Sales were $17,312 million in FY2025.
Space systems (Space)
The Trident II D5 submarine-launched missile, missile-warning and GPS III satellites, the Next Generation Interceptor, NASA's Orion crew vehicle and hypersonic weapons. Sales were $13,029 million in FY2025.
What it does
- Does: Builds and supports weapons and space systems for the US government and allied governments.
- Does: Works on classified US government programs in each of its four segments.
- Does: Owns 50% of United Launch Alliance, a rocket launch company, with Boeing.
What it does not do
- Does not: Sell much to businesses or consumers: US commercial and other customers were $293 million of FY2025 sales.
- Does not: Get paid the same way on every contract: 60.2% of FY2025 sales came from fixed-price contracts, where Lockheed bears cost overruns.
- Does not: Count United Launch Alliance's sales as its own; it records its share of ULA's profit or loss.
13How the money flows
13How the money flows · FY2025
How does money flow through Lockheed Martin?
Money in
- Product sales (aircraft, missiles, helicopters, satellites)$62.7B
- Service sales (support, upgrades, training)$12.4B
- Other income, operating and non-operating$295M
The company
Lockheed Martin
$75.3B came in
Money out
- Cost of sales (materials, suppliers, labor and overhead)$67.4B
- Interest on debt$1.1B
- Non-service pension cost, including a one-off $479 million settlement charge$874M
- Income tax$905M
- Net income$5.0B
- In FY2025 governments paid Lockheed Martin $62.7 billion for products and $12.4 billion for services.
- Doing the work took $67.4 billion: materials, suppliers, labor and overhead.
- That left operating profit of $7.7 billion, or $10.30 per $100 of sales.
- Interest took $1.1 billion, pension costs outside operations $0.9 billion and tax $0.9 billion.
- Lockheed Martin was left with $5.0 billion of net income.
14What it needs to run
14What it needs to run
What does Lockheed Martin need to run?
Engineers and skilled workers
About 123,000 employees at the end of FY2025, including about 72,000 engineers, scientists and IT staff. About 93% work in the US, and about 19% are covered by union agreements.
Suppliers and partners
Lockheed Martin's 10-K lists supplier, subcontractor and joint-venture partner performance as a risk factor. Cost of sales, including what suppliers are paid, was $67,429 million in FY2025.
Research and development
Company-funded research and development was $2.0 billion in FY2025, up from $1.5 billion in FY2023.
Plants and software
Capital spending was $1,649 million in FY2025. Property, plant and equipment, including capitalized software, was $11,524 million on Sep 27, 2026.
Export licenses
International customers were 28% of FY2025 sales. On the Turkish Utility Helicopter program, Lockheed Martin says up to about $115 million more could be lost if export licenses are denied.
15Where it sells
15Where it sells · FY2025
Where does Lockheed Martin sell?
- United States72%
- Europe12%
- Asia Pacific10%
- Middle East4%
- Other3%
16Competitors and what protects it
16Competitors and what protects it
Who does Lockheed Martin compete with?
Boeing
NYSE: BA
Named in Lockheed Martin's FY2025 10-K as one of its primary competitors. Boeing is also Lockheed Martin's 50% partner in United Launch Alliance.
Northrop Grumman
NYSE: NOC
Named in Lockheed Martin's FY2025 10-K as one of its primary competitors.
RTX Corporation
NYSE: RTX
Named in Lockheed Martin's FY2025 10-K as one of its primary competitors.
General Dynamics
Named in Lockheed Martin's FY2025 10-K as one of its primary competitors.
L3Harris Technologies
Named in Lockheed Martin's FY2025 10-K as one of its primary competitors.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Programs that run for decades4 of 5
Lockheed Martin had delivered 1,387 production F-35s by Sep 27, 2026, with 274 more in the F-35 backlog. The F-35 was 27% of FY2025 sales.
- Signed backlog4 of 5
Backlog was $291,984 million on Sep 27, 2026, up from $193,622 million on Dec 31, 2025. About 40% is expected as sales within 24 months.
- Engineering workforce3 of 5
About 72,000 of its 123,000 employees were engineers, scientists or IT staff at the end of FY2025, and company-funded research was $2.0 billion that year.
- Classified and government work3 of 5
Each of its four segments holds classified US government contracts, and the US government paid 71.2% of FY2025 sales.
Weak spot
Fixed-price cost overruns
60.2% of FY2025 sales came from fixed-price contracts. Program losses were $2.0 billion before tax in FY2024 and $1.6 billion in Q2 FY2025, and the first nine months of FY2026 brought unfavorable profit adjustments on the F-16, C-130, CH-53K and Seahawk programs.
17Where growth could come from
17Where growth could come from
Where could Lockheed Martin's growth come from?
Lockheed Martin said on Oct 22, 2026 that it expects FY2026 sales of about $80.0–82.0 billion and diluted EPS of about $30.35–30.75, up from its Jan 29, 2026 ranges of $77.5–80.0 billion and $29.35–30.25. It also expects free cash flow, its own measure, of about $7.8–8.0 billion.
Missile production
Working+24% MFC sales, Q3 FY2026
Missiles and Fire Control sales were $4,501 million in Q3 FY2026, up from $3,624 million a year earlier. The company points to higher PAC-3, THAAD, GMLRS and PrSM production.
Status: Working, on track against what the company said.
Multi-year missile-defense awards
New$52.5B PAC-3 MSE award
Backlog rose from $230,416 million on Jun 28, 2026 to $291,984 million on Sep 27, 2026, mainly from a $52.5 billion multi-year PAC-3 MSE award. A $35 billion multi-year THAAD contract came in Q2 FY2026.
Status: New, recently announced.
F-35 deliveries and funding
Mixed43 delivered, Q3 FY2026
Lockheed Martin delivered 32, 19 and 43 F-35s in Q1 to Q3 FY2026, against 47, 50 and 46 a year earlier. In Q3 FY2026 its costs on the Lot 20 advance contract began to exceed the funding authorized so far.
Status: Mixed, partly on track.
Space
Mixed+4% Space sales, Q3 FY2026
Space sales were $3,485 million in Q3 FY2026, up from $3,356 million, on the Trident (FBM) and NGI programs, offset by lower OPIR sales. United Launch Alliance, 50% owned, had Vulcan rocket performance problems in Q1 2026.
Status: Mixed, partly on track.
Ultra Maritime acquisition
New$3.45B, close expected Q4 2026
Lockheed Martin agreed in July 2026 to buy Ultra Maritime for $3.45 billion in cash, to sit in Rotary and Mission Systems. It expected the deal to close in Q4 2026.
Status: New, recently announced.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
Sources (8)
- Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026)
- Q4 and full-year 2025 earnings release (8-K Exhibit 99.1, Jan 29, 2026)
- Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026)
- Q2 2026 earnings release (8-K Exhibit 99.1, Jul 23, 2026)
- Q1 2026 earnings release (8-K Exhibit 99.1, Apr 23, 2026)
- Q1 2025 earnings release (8-K Exhibit 99.1, Apr 22, 2025)
- Q2 2025 earnings release (8-K Exhibit 99.1, Jul 22, 2025)
- Q3 2025 earnings release (8-K Exhibit 99.1, Oct 21, 2025)
18The company's own measures (non-GAAP)
18The company's own measures · FY2025
What do Lockheed Martin's own measures show?
Official (GAAP): Operating profit
$7.7B
Company's own measure: Business segment operating profit
$6.7B
The four segments' operating profit added up, as Lockheed Martin reports it. It leaves out the FAS/CAS pension adjustment (+$1,518 million: the gap between pension cost the government reimburses under its cost accounting standards and pension cost under GAAP), intangible amortization ($254 million), impairment and other charges ($66 million, mainly a write-off of fixed assets at Aeronautics) and other items ($210 million).
Official (GAAP): Net cash from operating activities
$8.6B
Company's own measure: Free cash flow
$6.9B
Cash from operations minus capital expenditures ($1,649 million), Lockheed Martin's definition, the same as this page's. The company labels it a non-GAAPThe company's own "adjusted" numbers, not the official (GAAP) ones. Always read them next to the official figure. Learn more measure.
Official (GAAP): Remaining performance obligations (the same figure, per the 10-K)
$193.6B
Company's own measure: Backlog
$193.6B
Signed work not yet recognized as sales, which Lockheed Martin defines as its remaining performance obligationsSigned contracts with customers that have not been billed yet.. About 37% was expected as sales within 12 months. On Sep 27, 2026 backlog was $291,984 million, with about 23% expected within 12 months.
Official (GAAP)
No official figure measures this; it is the company's own operating measure.
Company's own measure: F-35 deliveries
191 aircraft
Production F-35s delivered in 2025, up from 110 in 2024 and 98 in 2023. Nearest official figure: Aeronautics sales of $30,257 million, 67% of them from the F-35.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
Sources (5)
19Financial strength and debt
19Financial strength · Sep 27, 2026
How much debt does Lockheed Martin have?
- Total debt$20.5B
- Cash and investments$6.0B
- Net debt (debt minus cash)$14.5B
- Net worth (shareholders' money)$10.1B
- Debt to equity
- 2.04×
- $ of debt for every $1 of shareholders' money
- Interest cover
- 6.9×
- how many times operating profit covers interest
- Debt on Sep 27, 2026 was long-term notes of $20,498 million, net, with nothing due within a year. At Dec 31, 2025 the principal was $22,914 million, all fixed-rate notes.
- Net debt = $20,498 million − $5,960 million of cash = $14,538 million (Cityfort calculation from Q3 FY2026 10-Q).
- Debt to equity = $20,498 million ÷ stockholders' equity of $10,063 million = 2.04 (Cityfort calculation from Q3 FY2026 10-Q). Equity is small after years of buybacks and pension losses held in accumulated other comprehensive loss ($7,542 million at Dec 31, 2025).
- Interest cover = FY2025 operating profit of $7,731 million ÷ interest expense of $1,118 million = 6.9 (Cityfort calculation from FY2025 10-K).
- Accrued pension liabilities were $3,938 million on Sep 27, 2026.
- Credit facilities of $5.25 billion were undrawn, and no commercial paper was outstanding, on Sep 27, 2026.
- In Q3 2026 Lockheed Martin guaranteed up to $750 million of United Launch Alliance borrowings. That guarantee is not debt on its balance sheet.
20Who owns it
20Who owns it · ownership as of Mar 2, 2026
Who owns Lockheed Martin?
- Officers and directors (as a group), shares
- 0.1%
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Insider trades · Form 4 data as of Nov 6, 2026
What did Lockheed Martin's insiders report trading?
Lockheed Martin's insiders made 49 Form 4A filing an insider must make within two business days of buying or selling the company's shares. Learn more filings in the 12 months to Nov 6, 2026.
They reported no purchases and 24 sales (19,753 shares) in the open market or privately (codes P and S).
None of the sales were on forms with the Rule 10b5-1 plan box checked.
The same filings report 65 other share transactions (M: 26, F: 25, A: 9, G: 4, I: 1).
They also report 53 transactions in options, stock units or other derivatives.
Insiders are a company's officers, directors and owners of more than 10% of a class of its shares. Most changes in their holdings must be reported to the SEC on a Form 4 within two business days. Source: SEC Form 4 filings on EDGAR.
- P
- a purchase in the open market or privately
- S
- a sale in the open market or privately
- A
- a grant, award or other acquisition from the company under Rule 16b-3
- F
- shares withheld or handed over to pay an exercise price or tax when an award is received, exercised or vests
- I
- a discretionary transaction under Rule 16b-3(f), such as a move in or out of a company stock fund
- M
- exercise or conversion of an option or other derivative, exempt under Rule 16b-3
- G
- a bona fide gift
Code meanings: General Instruction 8 of Form 4 (SEC).
The latest 25 of 89 transactions
Shares: A = acquired, D = disposed of. A price the filing gives only in a footnote shows as “See filing”. The 10b5-1 box is checked when at least one trade on the form was made under a Rule 10b5-1 plan. A Form 4/A replaces the form it amends. See all of Lockheed Martin's Form 4 filings on EDGAR.
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes · Rule 10b5-1 trading plans: how insiders pre-schedule their trades
21What it does with profit
21What it does with profit
What does Lockheed Martin do with its profit?
Dividend per share
$13.35FY2025
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · Dec 31, 2021
Share repurchases in FY2021
$4.1B
Buyback · Dec 31, 2022
Share repurchases in FY2022
$7.9B
Buyback · Dec 31, 2023
Share repurchases in FY2023
$6.0B
Buyback · Dec 31, 2024
Share repurchases in FY2024 (7.5 million shares)
$3.7B
Buyback · Dec 31, 2025
Share repurchases in FY2025 (6.6 million shares)
$3.0B
22Governance signals
22Governance signals
What do Lockheed Martin's governance filings show?
- Auditor
- Ernst & Young LLP, since 1994
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- The 2026 proxy reports 2025 fees of about $3.8 million to State Street and $2.2 million to BlackRock, both large shareholders, for investment management and custody services.
- Credit rating
- Expected ratings in the Jul 23, 2025 note term sheet, agencies not named: A2 / A- / A (outlook not stated), Jul 23, 2025
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
other · Oct 22, 2026
F-35 Lot 20 costs above funding
Lockheed Martin said its costs on the F-35 Lot 20 advance acquisition contract began to exceed the current contractual authorization and funding in Q3 2026. Without more authorization and funding, it said, its results and cash flows will be hurt in future periods.
other · Oct 22, 2026
Support for United Launch Alliance
Lockheed Martin guaranteed up to $750 million of ULA borrowings in Q3 2026, and it and Boeing expect to provide more financial support. Its ULA investment was carried at $578 million.
other · Jan 29, 2026
Executive orders and shareholder payouts
Lockheed Martin's FY2025 10-K risk factors say its dividends and share repurchases may also be affected by presidential executive orders.
other · Mar 26, 2026
Insiders' shares as collateral or hedged
The 2026 proxy says no shares held by directors and officers are used as collateral. Company policy bars directors, officers and employees from hedging company stock or using it as collateral.
disclosure
What the filings do not show
The 10-K and 10-Qs read for this page give no sales by program other than the F-35, no split of international sales by country, and no agency names for the company's credit ratings.
23What the market paid
23What the market paid · price as of Nov 5, 2026
What did the market pay for Lockheed Martin on Nov 5, 2026?
Price as of Nov 5, 2026 (shown for education; prices change daily).
Closing price of $576.16 on Nov 5, 2026, from Nasdaq's historical price table for LMT. Lockheed Martin's shares are listed on the NYSE. Market value (Cityfort calculation from the Nov 5, 2026 closing price and the Q3 FY2026 10-Q) = $576.16 × 231,004,640 shares on the Q3 FY2026 10-Q cover (Oct 19, 2026) = $133,096 million. P/E = $576.16 ÷ FY2025 diluted EPS of $21.49 = 26.8: what buyers paid for each dollar of FY2025 profit per share. P/B = market value ÷ stockholders' equity of $10,063 million on Sep 27, 2026 = 13.2.
- Share price
- $576.16
- Market value (market cap)
- $133.1B
- P/E
- 26.8×
- P/B
- 13.2×
More price-based ratios · as of Nov 5, 2026
Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.
Price to sales (P/S)
1.7×
$133.1B market value ÷ $79.1B revenue (four quarters to Sep 27, 2026) = 1.7×
Cityfort calculation from the Nov 5, 2026 closing price and the Q4 FY2025 to Q3 FY2026 10-Qs and earnings releases. Source: LMT historical prices, Oct 15 to Nov 5, 2026 (Nasdaq.com historical table; LMT is listed on the NYSE); Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026); Form 10-K, fiscal year 2025 (ended Dec 31, 2025) and 4 more
How price ratios workDividend yield
2.32%
$13.35 dividends per share (FY2025) ÷ $576.16 share price = 2.32%
Cityfort calculation from the FY2025 10-K and the Nov 5, 2026 closing price. Source: LMT historical prices, Oct 15 to Nov 5, 2026 (Nasdaq.com historical table; LMT is listed on the NYSE); Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026); Form 10-K, fiscal year 2025 (ended Dec 31, 2025)
What dividend yield meansFree cash flow yield
5.2%
$6.9B free cash flow (FY2025) ÷ $133.1B market value = 5.2%
Cityfort calculation from the FY2025 10-K and the Nov 5, 2026 closing price. Source: LMT historical prices, Oct 15 to Nov 5, 2026 (Nasdaq.com historical table; LMT is listed on the NYSE); Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026); Form 10-K, fiscal year 2025 (ended Dec 31, 2025)
What free cash flow means
Shares used for the market value: 231 million ($576.16 × 231 million shares ≈ $133.1B). Source: Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026); 2026 proxy statement (DEF 14A)
Source: LMT historical prices, Oct 15 to Nov 5, 2026 (Nasdaq.com historical table; LMT is listed on the NYSE); Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026); Form 10-K, fiscal year 2025 (ended Dec 31, 2025)
Sources (8)
- LMT historical prices, Oct 15 to Nov 5, 2026 (Nasdaq.com historical table; LMT is listed on the NYSE)
- Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026)
- Form 10-K, fiscal year 2025 (ended Dec 31, 2025)
- Q4 and full-year 2025 earnings release (8-K Exhibit 99.1, Jan 29, 2026)
- Q1 2026 earnings release (8-K Exhibit 99.1, Apr 23, 2026)
- Q2 2026 earnings release (8-K Exhibit 99.1, Jul 23, 2026)
- Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026)
- 2026 proxy statement (DEF 14A)
24How it got here
24How it got here
How did Lockheed Martin get here?
1995
Milestone
Lockheed and Martin Marietta combine
Lockheed Martin was formed in 1995 by combining the businesses of Lockheed Corporation and Martin Marietta Corporation.
2022
Milestone
$7.9 billion of buybacks
Lockheed Martin repurchased $7,900 million of shares in FY2022 and issued $6,211 million of debt.
2024
Crisis
Classified program losses
Losses on classified programs at Aeronautics and Missiles and Fire Control cost $2.0 billion before tax in FY2024, $1.7 billion of it in Q4.
2025
Crisis
More program losses
Q2 FY2025 brought $1.6 billion of program losses: $950 million on an Aeronautics classified program, $570 million on the Canadian Maritime Helicopter Program and $95 million on the Turkish Utility Helicopter Program.
2025
Milestone
F-35 Lots 18 and 19 agreed
The agreement for 296 F-35s in Lots 18 and 19 was definitized on Sep 29, 2025. Lockheed Martin delivered 191 F-35s in 2025, up from 110 in 2024.
2025
Milestone
Pension obligations moved to insurers
In December 2025 Lockheed Martin transferred $943 million of pension obligations to insurers, with a $479 million settlement charge.
2026
Business-model change
Large multi-year missile contracts
A $35 billion multi-year THAAD contract came in Q2 FY2026 and a $52.5 billion PAC-3 MSE award in Q3. Backlog reached $291,984 million on Sep 27, 2026.
2026
Milestone
Ultra Maritime deal agreed
Lockheed Martin agreed in July 2026 to buy Ultra Maritime for $3.45 billion in cash, for its Rotary and Mission Systems segment.
Sources (9)
- Form 10-K, fiscal year 2025 (ended Dec 31, 2025)
- Form 10-K, fiscal year 2023 (ended Dec 31, 2023)
- Q4 and full-year 2024 earnings release (8-K Exhibit 99.1, Jan 28, 2025)
- Q2 2025 earnings release (8-K Exhibit 99.1, Jul 22, 2025)
- Q4 and full-year 2025 earnings release (8-K Exhibit 99.1, Jan 29, 2026)
- Form 8-K filed Dec 18, 2025: pension group annuity buy-out conversions (Item 8.01)
- Q2 2026 earnings release (8-K Exhibit 99.1, Jul 23, 2026)
- Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026)
- Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026)
25Sources and changes
Where every number on this page comes from
Sources (20 documents)
- S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 29, 2026
- S3Form 10-K, fiscal year 2023 (ended Dec 31, 2023) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 23, 2024
- S6Form 10-Q, Q3 FY2026 (quarter ended Sep 27, 2026) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 22, 2026
- S9Form 10-Q, Q3 FY2025 (quarter ended Sep 28, 2025) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2025
- S10Q3 2026 earnings release (8-K Exhibit 99.1, Oct 22, 2026) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 22, 2026
- S11Q2 2026 earnings release (8-K Exhibit 99.1, Jul 23, 2026) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 23, 2026
- S12Q1 2026 earnings release (8-K Exhibit 99.1, Apr 23, 2026) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 23, 2026
- S13Q4 and full-year 2025 earnings release (8-K Exhibit 99.1, Jan 29, 2026) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 29, 2026
- S14Q3 2025 earnings release (8-K Exhibit 99.1, Oct 21, 2025) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2025
- S15Q2 2025 earnings release (8-K Exhibit 99.1, Jul 22, 2025) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 22, 2025
- S16Q1 2025 earnings release (8-K Exhibit 99.1, Apr 22, 2025) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 22, 2025
- S17Q4 and full-year 2024 earnings release (8-K Exhibit 99.1, Jan 28, 2025) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jan 28, 2025
- S182026 proxy statement (DEF 14A) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 26, 2026
- S19Schedule 13G/A (Amendment No. 9) by The Vanguard Group, event date Mar 13, 2026 · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S20Schedule 13G by Vanguard Capital Management, event date Mar 31, 2026 · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · 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) · Tier 1: company or exchange filing · Aug 28, 2026
- S22Form 8-K filed Dec 18, 2025: pension group annuity buy-out conversions (Item 8.01) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 18, 2025
- S24Free writing prospectus (pricing term sheet), notes due 2028, 2030 and 2035, Jul 23, 2025 · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jul 23, 2025
- S25Form 8-K filed Apr 17, 2025: CFO appointment of Evan Scott (Exhibit 99 news release) · Lockheed Martin Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 17, 2025
- S26LMT historical prices, Oct 15 to Nov 5, 2026 (Nasdaq.com historical table; LMT is listed on the NYSE) · Nasdaq, Inc. · Tier 1: company or exchange filing · Nov 7, 2026
Changes to this page (v1 · Nov 7, 2026)
- v1 · Nov 7, 2026First version. (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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