Executive Summary
Record Production Surge: Lockheed Martin delivered 191 F-35 aircraft in 2025, setting a new record while the company secured agreements to more than triple PAC-3 missile production capacity to 2,000 units annually by 2033.
Robust Financial Position: Despite $1.6 billion in Q2 2025 program losses, the company maintains a record backlog of $179 billion covering over 2.5 years of future sales, with TTM revenue reaching $73.3 billion.
Strategic Positioning: The company is uniquely positioned to support the U.S. government’s Golden Dome integrated missile defense initiative, leveraging its cross-domain capabilities in air superiority, space surveillance, and maritime defense systems.
Balanced Risk Profile: While facing challenges from classified program losses and supply chain pressures, Lockheed benefits from substantial barriers to entry, long-term government contracts, and diversified revenue streams across four business segments.
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Table of Contents
Business Overview and Key Facts
Lockheed Martin Corporation stands as the world’s largest defense contractor and the U.S. government’s premier supplier of advanced aerospace and defense systems.
The company operates through four distinct business segments that collectively address critical national security requirements.
Revenue Performance and Growth Drivers
The company’s financial performance through the third quarter of 2025 demonstrates steady growth despite operational challenges. Sales for Q3 2025 reached $18.6 billion, representing a 9% year-over-year increase from $17.1 billion in the same period of 2024.
For the twelve months ending September 30, 2025, revenue totaled $73.35 billion, reflecting a 2.88% increase year-over-year. Full-year 2025 revenue guidance ranges between $74.25 billion and $74.75 billion.
Business Segment | Primary Products/Services | Key Revenue Drivers |
|---|---|---|
Aeronautics | F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon, classified programs | Largest contributor; F-35 production ramp-up, international orders |
Missiles and Fire Control (MFC) | PAC-3 MSE, THAAD, JASSM, LRASM, Hellfire missiles | Missile defense surge, precision strike weapons demand |
Rotary and Mission Systems (RMS) | CH-53K King Stallion, Sikorsky Black Hawk, radar systems, naval systems | Multi-year helicopter contracts, maritime defense systems |
Space | Orion spacecraft, GPS satellites, missile warning systems, space-based sensors | NASA Artemis program, national security space missions |
Key Product Lines and Programs
F-35 Lightning II: The program achieved record delivery of 191 aircraft in 2025, surpassing the previous record of 142 units. With nearly 1,300 aircraft now operational across 12 nations, the F-35 continues to demonstrate combat effectiveness, including suppressing Iran’s air defenses during Operation Midnight Hammer and eliminating Russian drones over Poland.
In September 2025, Lockheed and the F-35 Joint Program Office finalized Lots 18-19 contracts for up to 296 aircraft valued at $24 billion, marking the largest production contracts in program history.
PAC-3 Missile Segment Enhancement (MSE): Demand for advanced air defense has driven remarkable production expansion. The company delivered 620 PAC-3 units in 2025, representing a 60% increase over the prior two years.
The January 2026 announcement of a seven-year agreement to triple annual production capacity to 2,000 units from 600 units underscores the strategic importance of air defense capabilities. This expansion supports 16 allied nations beyond the U.S., including Sweden, Qatar, Japan, and Poland.
Image source: lockheedmartin.com
CH-53K King Stallion: September 2025 brought a $10.855 billion contract from the U.S. Navy to build up to 99 CH-53K helicopters over five years for the U.S. Marine Corps. This multi-year procurement represents the largest quantity order to date for the world’s most powerful heavy-lift helicopter.
The contract provides $1.5 billion in savings through 2029 compared to annual procurement approaches, demonstrating the cost efficiency of multi-year agreements.
JASSM and LRASM: Long-range strike capabilities continue expanding. In August 2025, Lockheed secured a $9.5 billion contract for Joint Air-to-Surface Standoff Missile (JASSM) and Long Range Anti-Ship Missile (LRASM) production. Current production capacity of 1,100 missiles annually is projected to increase substantially to meet growing demand.
Orion Spacecraft: As NASA’s Artemis program advances, Lockheed completed and delivered the Orion spacecraft for Artemis II in May 2025. The mission, scheduled for no earlier than February 2026, will mark the first crewed flight around the Moon in over 50 years, carrying four astronauts on a 10-day mission to validate systems for sustained lunar exploration.