01—Abstract
Summary
Summary of the 10-K filed January 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Lockheed Martin Corporation (LMT) reported strong performance in 2025, driven by increased demand in the aerospace and defense sector, fueled by recent global conflicts.
The company's sales reached $75.0 billiona, a 6% increase from the prior year, with operating profit rising to $7.7 billion. This growth was supported by robust demand across all four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. The company is strategically expanding production capacity and investing in advanced technologies such as artificial intelligence and autonomy to maintain its competitive edge.
While supply chain challenges and inflationary pressures persist industry-wide, Lockheed Martin is actively working with suppliers to mitigate impacts. The company's backlog stood at a healthy $193.6 billionb at the end of 2025, providing good visibility into future revenues. Despite some program-specific challenges, particularly in the Aeronautics segment, the company's overall financial health remains strong, supported by significant government contracts and international sales.
02—Key points
Key Highlights
- Total sales for 2025 reached $75.0 billion, a 6% increase year-over-year, driven by strong demand across all business segments.
- Operating profit increased to $7.7 billion, reflecting effective cost management and program execution.
- The company's backlog grew to $193.6 billion at the end of 2025, indicating robust future revenue potential.
- Investments in advanced technologies such as AI and autonomy are a key focus for enhancing capabilities and competitiveness.
- The Missiles and Fire Control (MFC) segment saw significant sales growth of 14%, driven by tactical and strike missile programs.
- Despite supply chain challenges and inflation, the company maintained strong operational performance and is actively managing these risks.
- Lockheed Martin's acquisition of Amentum's Rapid Solutions business in Q2 2025 aims to bolster its Space segment capabilities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Lockheed Martin kept $0.07.
- Revenue$75.05B100.0%
- Cost of revenue−$67.43B89.8%
- Gross profit$7.62B10.2%
- Operating costs$112.0M0.1%
- Operating income$7.73B10.3%
- Interest, other & tax−$2.71B3.6%
- Net income$5.02B6.7%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed January 29, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $75.05B$71.04B | +5.6% |
| Cost of Revenue | $67.43B$64.11B | +5.2% |
| Gross Profit | $7.62B$6.93B | +9.9% |
| R&D Expenses | $2.00B$1.60B | +25.0% |
| Operating Income | $7.73B$7.01B | +10.2% |
| Net Income | $5.02B$5.34B | −6.0% |
| EPS (Basic) | $21.56$22.39 | −3.7% |
| EPS (Diluted) | $21.49$22.31 | −3.7% |
| Shares Outstanding (Basic) | 232.70M238.30M | −2.3% |
| Shares Outstanding (Diluted) | 233.50M239.20M | −2.4% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Lockheed Martin's sales growth in 2025?
Lockheed Martin's sales growth in 2025 was primarily driven by increased demand across all four business segments – Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. This surge in demand is attributed to heightened global security needs and ongoing conflicts, leading to increased orders for defense and aerospace products and services. Specific segments like MFC experienced significant growth due to ramp-ups in tactical and strike missile programs.
How is Lockheed Martin addressing supply chain challenges and inflation?
Lockheed Martin is actively addressing supply chain challenges and inflation by working closely with suppliers to ensure timely delivery of materials and components. The company is also focused on increasing operational efficiencies and improving the cost-competitiveness and affordability of its products and services. While these industry-wide pressures exist, Lockheed Martin's long-term contracts and strategic relationships are designed to mitigate many of these impacts.
What is the significance of the company's backlog and how does it translate to future revenue?
The company's backlog stood at $193.6 billion at the end of 2025, which represents committed orders for future delivery. Lockheed Martin expects to recognize approximately 37% of this backlog over the next 12 months and about 60% over the next 24 months. This substantial backlog provides strong visibility into future revenue streams and demonstrates continued customer demand for its products and services.
Are there any significant program-specific challenges or investments noted in the report?
Yes, the report highlights program-specific challenges, particularly within the Aeronautics segment, which recognized significant additional reach-forward losses on a classified program due to software development issues, integration findings, and revised test plans. Conversely, the company made a strategic investment by acquiring Amentum's Rapid Solutions business in the second quarter of 2025 to enhance its Space segment's capabilities in space and airborne mission technologies.
06—Continue