What it does
The company states that it is a global aerospace and defense technology company serving defense, space, intelligence, homeland security, information technology and cybersecurity needs. It operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Its work includes military aircraft, air and missile defense, tactical missiles, helicopters, mission and combat systems, cyber and training solutions, satellites, space transportation, and strategic and defensive systems. The filing also says that some of its U.S. Government work is classified and cannot be specifically described.
Source: Lockheed Martin Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company generates sales by performing contracts for government customers and, in some cases, commercial applications. The segment table below summarizes the revenue mix across its four reportable business segments. The filing says its contracts include fixed-price and cost-reimbursable arrangements. Under cost-reimbursable contracts, it is generally paid allowable costs plus a fee up to the funded ceiling. Under fixed-price contracts, its revenue is fixed while it bears specified cost-overrun risk. It also performs some work before contract terms, specifications or prices are finalized through undefinitized contract actions.
Source: Lockheed Martin Corporation Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov
Customers and geography
The filing identifies agencies of the U.S. Government and allied nations as the company’s principal customers. It contracts with U.S. Government agencies, principally all branches of the U.S. military and NASA, as well as similar authorities in other countries. International sales may be conducted through the foreign military sales program or directly with a foreign government authority. The company states that international competition and sales are subject to U.S. Government stipulations, including export restrictions, market access, technology transfer, industrial cooperation and contracting practices.
Source: Lockheed Martin Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The filing lists The Boeing Company, General Dynamics, L3Harris Technologies, Northrop Grumman, and RTX Corporation as some of Lockheed Martin’s primary competitors. It also states that the company competes with numerous smaller competitors, startups, non-traditional defense contractors and non-U.S. defense contractors. The company says it sometimes collaborates with competitors through teaming arrangements and may act as a subcontractor when another company receives a prime contract award. The filing identifies competition on technical excellence, reliability, safety, cost competitiveness, execution, delivery, customer relationships and accessibility to customers.
Source: Lockheed Martin Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
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The company depends heavily on U.S. Government contracts; changes in priorities or delays or reductions in spending could adversely affect its business.
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The F-35 program comprises a material portion of revenue, and funding reductions or delays and risks involving performance, schedule, cost and requirements could adversely affect performance.
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Extensive procurement laws, regulations and contract terms, including termination rights, create compliance, cost and reputational risks.
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Competition and changing customer procurement policies could adversely affect business and financial results.
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Profitability and cash flow may vary with contract mix, program performance, and the ability to estimate and control costs.
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Reliance on suppliers, subcontractors, teaming partners and joint-venture partners can affect contract performance and future business.
Source: Lockheed Martin Corporation Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
As of December 31, 2025, the company had 123,000 employees. The filing says its specialized work depends on identifying, attracting, developing, motivating and retaining skilled personnel, including people with required security clearances. It describes needs across engineering, science, manufacturing, information technology, cybersecurity, business development, strategy and management. The company states that no material portion of its business is seasonal, although the timing of government awards, funding availability, deliveries and customer acceptance can affect sales between accounting periods.
Source: Lockheed Martin Corporation Form 10-K for fiscal 2025, Item 1 — sec.gov