Lockheed Martin Corp (NYSE: LMT) is an aerospace and defense company that designs, develops, manufactures, and sustains advanced defense systems for government customers. It makes money through long-term government contracts, primarily with the U.S. Government, recognized on a percentage-of-completion cost-to-cost basis across four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. The company operates as prime contractor on most of its programs, with subcontractors and partners supplying materials and components. Total backlog was $193.6 billion as of December 31, 2025, up from $176.0 billion at December 31, 2024, with funded backlog of $120.2 billion. Net earnings were $5.0 billion ($21.49 per share) in FY2025. James D. Taiclet has served as Chairman, President, and CEO since June 2020. The S&P Aerospace and Defense Index peers named in the FY2025 10-K include General Dynamics, Northrop Grumman, L3Harris Technologies, and Huntington Ingalls Industries.

Revenue model

Revenue is generated through long-term fixed-price and cost-type contracts with U.S. and international government customers, recognized over time using the percentage-of-completion cost-to-cost method. International sales are conducted either through Foreign Military Sales (FMS) contracted via the U.S. Government (approximately 77% of international sales in FY2025) or through direct commercial sales (DCS) to international government customers (approximately 23% in FY2025). International customers accounted for 36% of Aeronautics segment sales in FY2025.

Products and services

Key programs include the F-35 Lightning II fighter aircraft, the F-16 multi-role fighter, and the C-130J tactical airlifter within the Aeronautics segment. The MFC, RMS, and Space segments cover missiles, fire control systems, rotary-wing aircraft, mission systems, and space systems. Substantially all international sales originate from the Aeronautics, MFC, and RMS segments; Space international sales were not material in FY2025.

Customers and end markets

The primary customer is the U.S. Government. International government customers are served through FMS (routed via the U.S. Government) and DCS channels. The F-35 program includes commitments from the U.S. Government, seven international partner countries, and twelve FMS customers as of the FY2025 10-K filing. End markets are defense and national security.

Value-chain role

Lockheed Martin acts as prime contractor on most of its contracts, designing, developing, and manufacturing defense systems while relying on Tier 1 and Tier 2 subcontractors, teaming arrangements, joint ventures, and supply agreements for materials, major components, and portions of services.

Geographic exposure

Primarily U.S. domestic sales to the U.S. Government. International customers accounted for 36% of Aeronautics segment sales in FY2025, with international business conducted via FMS and DCS channels. Space segment international sales were not material in FY2025.

Competitors

General Dynamics Corporation, Northrop Grumman Corporation, L3Harris Technologies, Huntington Ingalls Industries

Source: SEC 10-K, filed 2026-01-29

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