Lockheed Martin Corporation
Lockheed Martin is a U.S.-based aerospace and defense technology company that designs, builds, and sustains mission systems for military, space, intelligence, homeland security, and cybersecurity applications. Its business is organized around Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space, with most revenue tied to U.S. Government programs and a meaningful international sales base.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueFixed-wing aircraft, modernization, sustainment, and related mission systems.
Missile systems, precision strike, sensors, targeting, and fire control.
Helicopter-related systems, naval combat systems, radar, and mission integration.
Spacecraft, satellites, space payloads, and classified or civil space programs.
Products
Reported · share of revenue- Products83.5 %
- Services16.5 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Lockheed Martin sells primarily to the U.S. Government, especially the Department of War/Defense, through prime contracts and subcontracting arrangements. It also serves allied governments through foreign military sales and direct commercial sales, with smaller exposure to civil and commercial space and technology customers.
Buys aircraft, missiles, space systems, and sustainment under prime and subcontract awards; this is the core revenue base.
Buy defense systems mainly through foreign military sales and some direct commercial sales to strengthen national defense.
The largest U.S. customer for aircraft, missile defense, and mission systems programs.
Buy selected space-related systems and services, including commercial civil space programs.
Buy specialized systems and services for secure communications, surveillance, and mission support.
Strategy
Lockheed Martin is expanding production capacity and investing in advanced technologies to meet higher demand and improve delivery speed across its portfolio. It is also pushing international growth, portfolio shaping, and selective acquisitions to broaden capabilities in space, ISR, autonomy, open architecture, and networking.
Recent conflicts and higher demand require more output at scale and faster delivery.
International markets diversify the customer base and extend program opportunities.
AI, autonomy, open architecture, and advanced networking improve mission performance and competitiveness.
Portfolio changes can add new technologies, customers, and mission capabilities.
Geography
The company is headquartered in the United States and derives the majority of sales from U.S. Government programs. International business is strategically important and is concentrated in allied markets, with most international sales coming from Aeronautics, Missiles and Fire Control, and Rotary and Mission Systems.
Risks
The company is highly exposed to U.S. defense budgeting, procurement timing, and political decision-making, so shifts in government priorities can materially affect program flow. It also faces execution risk on long-cycle, technically complex contracts, plus supply-chain and cybersecurity exposure across thousands of suppliers and partners.
- U.S. Government budget and procurement changesImpact: HighLikelihood: Medium
A large share of revenue depends on defense appropriations and acquisition decisions.
Exposure: 72% of 2025 sales from the U.S. Government
- Program execution and cost overrunsImpact: HighLikelihood: Medium
Large fixed-price or complex programs can generate reach-forward losses if performance slips.
Exposure - Cybersecurity and supply-chain disruptionImpact: HighLikelihood: Medium
Thousands of direct and indirect suppliers increase the attack surface and delivery risk.
Exposure: Multi-tier defense supply chain
- Acquisition and integration riskImpact: MediumLikelihood: Medium
M&A can fail to deliver expected capabilities or create impairment risk.
Exposure: Rapid Solutions and other portfolio actions
- International policy and geopolitical riskImpact: MediumLikelihood: Low
Foreign military sales and direct commercial sales depend on approvals and allied demand.
Exposure: International customers and FMS channels
Accounting
Judgemental itemsLong-duration defense programs require estimates of cost, margin, and performance over time.
Impact: Can shift revenue and profit between periods as estimates change
Program revisions can require immediate recognition of expected losses or favorable completions.
Impact: Directly affects segment operating profit
The company carries substantial goodwill from acquisitions and tests it annually.
Impact: Could create large non-cash charges if program outlook weakens
International sales expose the company to exchange-rate movements.
Impact: Can affect reported earnings and cash flow timing
Defined benefit plans and risk transfer actions require actuarial assumptions and funding judgments.
Impact: Can affect liabilities, cash contributions, and expense
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Last updated: 24/09/2026