Lockheed Martin Company Profile (2026)
Company Profile | Aerospace, Defense & Technology | Updated September 2026
Lockheed Martin: F-35, Missiles & Space Systems Leader with $77-80B Revenue
Lockheed Martin is the world's largest defense contractor by revenue, developing and producing military aircraft (F-35 Lightning II, F-16, C-130J), missiles and missile defense systems (PAC-3, THAAD, JASSM, LRASM), rotary and mission systems (Sikorsky helicopters, naval combat systems), and space systems (satellites, missile warning, strategic defense). In Q2 FY2026, Lockheed reported revenue of $20.1 billion (up 11% YoY) and adjusted EPS of $7.94 (beat estimates). The company guides FY2026 revenue of $77.5-80 billion (+5% organic) with a record backlog of nearly $230 billion representing more than two-and-a-half years of sales.
Executive Summary
Lockheed Martin Corporation is a global aerospace, defense, and technology company with the U.S. Department of Defense as its largest customer. In Q2 FY2026 (ended June 2026), Lockheed reported revenue of $20.1 billion (up 11% YoY) and adjusted EPS of $7.94, beating analyst estimates of $7.23 EPS and $19.37B revenue.
The company guides FY2026 revenue of $77.5-80 billion (+5% organic growth) and EPS of $29.95-30.65. Lockheed finished 2025 with a record backlog of nearly $194 billion (now ~$230B), representing more than two-and-a-half years of sales. The F-35 program is the largest single program, accounting for 27% of 2025 consolidated sales.
Lockheed operates through four business segments: Aeronautics (~40% of revenue, F-35, F-16, C-130J), Missiles and Fire Control (~25%, PAC-3, THAAD, JASSM, LRASM, PrSM), Rotary and Mission Systems (~17%, Sikorsky helicopters, naval combat systems, radar), and Space (~18%, satellites, missile warning, strategic defense, Next Generation Interceptor).
Company Overview
Lockheed Martin was formed in 1995 through the merger of Lockheed Corporation and Martin Marietta. The company is headquartered in Bethesda, Maryland, and is listed on the NYSE under the ticker LMT. Lockheed is a component of the S&P 500 and Dow Jones Industrial Average indices.
Lockheed Martin is the world's largest defense contractor by revenue ($75B FY25) and the sole-source manufacturer of the F-35 Lightning II, the largest defense program in history. The company employs approximately 122,000 people worldwide and serves customers in the U.S. and allied governments.
Core Business Segments
Aeronautics (~40% of revenue, ~$30B)
- F-35 Lightning II: 5th-generation multi-role fighter; sole producer for U.S. + 17 partner/customer nations. Generates ~27% of total consolidated sales (~$20B run-rate).
- F-16 Block 70: Advanced 4th-generation fighter for international customers.
- C-130J Super Hercules: Tactical airlifter for military and humanitarian missions.
- F-22 Raptor sustainment: Maintenance and upgrades for U.S. Air Force's 5th-generation fighter.
- Skunk Works: Classified advanced development programs (SR-71, U-2 heritage).
Missiles and Fire Control (~25% of revenue)
- PAC-3 MSE: Patriot Advanced Capability-3 Missile Segment Enhancement; hit 100% intercept rate in combat. $9.8B contract (largest in MFC history).
- THAAD: Terminal High Altitude Area Defense; missile defense system.
- JASSM & LRASM: Joint Air-to-Surface Standoff Missile and Long Range Anti-Ship Missile. $9.5B contract for Lots 18 and 19.
- PrSM: Precision Strike Missile; long-range precision fires.
- Hellfire: Air-to-ground missile for helicopters and drones.
- HIMARS: High Mobility Artillery Rocket System; Sweden awarded ~$729M contract.
- Hypersonic strike programs: Next-generation hypersonic weapons.
Rotary and Mission Systems (~17% of revenue)
- Sikorsky helicopters: CH-53K King Stallion ($10.9B contract), UH-60 Black Hawk, MH-60R/S Seahawk.
- Naval combat systems: Aegis Combat System, radar, sensors, command-and-control.
- Maritime systems: Littoral Combat Ship (LCS), frigates, destroyers.
- Radar & sensors: AN/SPY-6, TPY-4, other advanced radar systems.
Space (~18% of revenue, ~$13B)
- Trident II D5 LE: Fleet Ballistic Missile for U.S. and UK navies.
- Next Generation Interceptor: Missile defense interceptor for Ground-based Midcourse Defense.
- Orion spacecraft: NASA's crew capsule for Artemis moon missions.
- GPS satellites: Next-generation GPS III and IIIF satellites.
- Missile warning & tracking: Space-based infrared systems (SBIRS, OPIR).
- Classified national-security space: Reconnaissance, communications, other classified programs.
Business Model
Lockheed's business model is based on long-term government contracts for development, production, and sustainment of advanced defense systems. Key characteristics:
- Long-term contracts: Multi-year production contracts (e.g., F-35 Lots 18-19, PAC-3 MSE, JASSM/LRASM) provide revenue visibility and backlog stability.
- Recurring sustainment revenue: F-35 sustainment, missile reloads, helicopter upgrades, and satellite operations provide stable, high-margin recurring revenue.
- Sole-source positions: F-35 (sole producer), PAC-3 (primary supplier), Trident II (sole supplier) create high barriers to entry and pricing power.
- International sales: F-35 exports (17+ customer nations), HIMARS, PAC-3, THAAD international sales drive growth. UBS projects Missiles and Fire Control revenue could grow 150% by 2030, driven by rising international demand and replenishment of missile inventories.
- R&D investment: Significant investment in next-generation technologies (hypersonics, directed energy, AI/autonomy, space systems) to maintain technology leadership.
Financial Profile
| Metric | Figure or description |
|---|---|
| Legal name | Lockheed Martin Corporation |
| Founded | 1995 (merger of Lockheed and Martin Marietta) |
| Headquarters | Bethesda, Maryland, United States |
| Listing | NYSE: LMT (S&P 500, DJIA component) |
| Market Cap | ~$121-124 billion (as of September 2026) |
| Employees | ~122,000 worldwide |
| Q2 FY2026 Revenue | $20.1 billion (up 11% YoY) |
| Q2 FY2026 EPS (adjusted) | $7.94 (beat estimates of $7.23) |
| FY2026 Revenue Guidance | $77.5-80 billion (+5% organic growth) |
| FY2026 EPS Guidance | $29.95-30.65 |
| Backlog | Nearly $194B (end of 2025); ~$230B (current) |
| Dividend | $3.45/share quarterly ($13.80 annualized, 2.6% yield) |
| Net Margin | 8.16% |
| ROE | 91.42% |
| F-35 % of sales | 27% of total consolidated sales (2025) |
Competitive Landscape
| Area | Key competitors | Overlap |
|---|---|---|
| Military Aircraft | Boeing (F-15, F/A-18), Northrop Grumman (B-21), General Dynamics (F-16 co-producer) | Fighter aircraft, bombers, military transports |
| Missiles & Missile Defense | RTX (Raytheon: Patriot, SM-6), Northrop Grumman (GBI), General Dynamics | Missile defense, tactical missiles, strategic missiles |
| Helicopters | Boeing (Apache, Chinook), Bell Textron, Airbus Helicopters | Military helicopters, rotary-wing aircraft |
| Space Systems | Northrop Grumman, Boeing, SpaceX, Blue Origin | Satellites, launch vehicles, space exploration |
Competitive Advantages
- F-35 monopoly: Sole producer of F-35 for U.S. + 17+ international customers; largest defense program in history (~$20B run-rate, 27% of sales).
- Missile leadership: PAC-3 (100% combat intercept rate), THAAD, JASSM, LRASM, PrSM, HIMARS; $9.8B PAC-3 and $9.5B JASSM/LRASM contracts (largest in company history).
- Record backlog: ~$230B backlog (>2.5 years of sales) provides revenue visibility and pricing power.
- International growth: F-35 exports, HIMARS (Sweden $729M), PAC-3 international sales; UBS projects MFC revenue could grow 150% by 2030.
- Space & strategic systems: Trident II, Next Generation Interceptor, Orion, GPS, missile warning satellites; critical national security programs.
- Sustainment revenue: F-35 sustainment, missile reloads, helicopter upgrades provide stable, high-margin recurring revenue.
Risks and Challenges
- F-35 execution: Production delays, quality issues, or international order cancellations could materially impact revenue (27% of sales).
- Supply chain: Semiconductor shortages, labor constraints, and supplier capacity could constrain production ramp (especially missiles and F-35).
- Government budget: U.S. defense budget constraints, continuing resolutions, or political gridlock could delay contracts and payments.
- International risk: Export controls, geopolitical tensions, or foreign customer budget cuts could impact international sales growth.
- Competition: Intense competition from Boeing, Northrop Grumman, RTX, and emerging defense tech companies (Anduril, etc.).
- Margin pressure: Fixed-price development contracts, inflation, and labor costs could pressure margins if not managed effectively.
Key Takeaways
- Lockheed Martin is the world's largest defense contractor ($75B FY25 revenue) and sole producer of F-35 Lightning II.
- Q2 FY2026 revenue was $20.1B (up 11% YoY), EPS $7.94 (beat estimates); FY2026 guidance $77.5-80B revenue, $29.95-30.65 EPS.
- Record backlog of ~$230B (>2.5 years of sales) provides strong revenue visibility.
- F-35 is largest program (27% of sales, ~$20B run-rate); PAC-3, JASSM, LRASM, HIMARS drive missile growth.
- Four segments: Aeronautics (~40%), Missiles & Fire Control (~25%), Rotary & Mission Systems (~17%), Space (~18%).
- International sales (F-35 exports, HIMARS, PAC-3) and missile inventory replenishment drive growth; UBS projects MFC revenue could grow 150% by 2030.
- Key risks include F-35 execution, supply chain constraints, government budget, international risk, competition, and margin pressure.
Profile compiled September 2026. Financial figures, contract awards, and geopolitical conditions change frequently; consult Lockheed Martin's latest earnings reports and SEC filings for investment decisions. This article is informational only and not investment advice.
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