LOCKHEED MARTIN CORPLMT
LOCKHEED MARTIN CORP Segments Disclosure
Information on Business Segments
Overview
We operate in four business segments: Aeronautics, MFC, RMS and Space. We organize our business segments based on the nature of products and services offered. Following is a brief description of the activities of our business segments:
•Aeronautics – Engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies.
•Missiles and Fire Control – Provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; and mission operations support, readiness, engineering support and integration services.
•Rotary and Mission Systems – Designs, manufactures, services and supports various military and commercial helicopters, sea- and land-based missile defense systems, radar systems, laser systems, sea- and air-based mission and combat systems, command and control mission solutions, cyber solutions, simulation and training solutions, and services and supports surface ships.
•Space – Engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems. Space provides network-enabled situational awareness and integrates complex space and ground global systems to help our customers gather, analyze and securely distribute critical intelligence data. Space is also responsible for various classified systems and services in support of vital national security systems. Operating profit for our Space business segment also includes our share of earnings for our 50% ownership interest in ULA, which provides expendable launch services to the U.S. Government and commercial customers. Our investment in ULA totaled $551 million at both December 31, 2025 and 2024.
Selected Financial Data by Business Segment
Sales and operating profit of our business segments exclude intersegment sales, operating costs and expenses and profit as these activities are eliminated in consolidation and thus are not included in management’s evaluation of performance of each segment. Our Chief Executive Officer (CEO) and Chief Operating Officer (COO) serve as our Chief Operating Decision Makers (CODMs) and are responsible for reviewing segment performance and making decisions regarding resource allocation. Our CODMs evaluate each segment’s performance based on metrics such as sales, operating profit, and other key financial indicators, guiding strategic decisions to align with company-wide goals. Business segment operating profit includes our share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of our business segments.
Summary Operating Results
Sales, operating costs and expenses and operating profit for each of our business segments were as follows (in millions):
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Sales | ||||||||||||||||||||
| Aeronautics | $ | 30,257 | $ | 28,618 | $ | 27,474 | ||||||||||||||
| Missiles and Fire Control | 14,450 | 12,682 | 11,253 | |||||||||||||||||
| Rotary and Mission Systems | 17,312 | 17,264 | 16,239 | |||||||||||||||||
| Space | 13,029 | 12,479 | 12,605 | |||||||||||||||||
| Total sales | $ | 75,048 | $ | 71,043 | $ | 67,571 | ||||||||||||||
| Operating costs and expenses | ||||||||||||||||||||
| Aeronautics | $ | 28,168 | $ | 26,093 | $ | 24,649 | ||||||||||||||
| Missiles and Fire Control | 12,461 | 12,277 | 9,712 | |||||||||||||||||
| Rotary and Mission Systems | 16,041 | 15,391 | 14,399 | |||||||||||||||||
| Space | 11,689 | 11,308 | 11,473 | |||||||||||||||||
| Total operating costs and expenses | $ | 68,359 | $ | 65,069 | $ | 60,233 | ||||||||||||||
Operating profit (a) | ||||||||||||||||||||
| Aeronautics | $ | 2,086 | $ | 2,523 | $ | 2,825 | ||||||||||||||
| Missiles and Fire Control | 1,989 | 413 | 1,541 | |||||||||||||||||
| Rotary and Mission Systems | 1,323 | 1,921 | 1,865 | |||||||||||||||||
| Space | 1,345 | 1,226 | 1,158 | |||||||||||||||||
| Total business segment operating profit | 6,743 | 6,083 | 7,389 | |||||||||||||||||
| Unallocated items | ||||||||||||||||||||
| FAS/CAS pension operating adjustment | 1,518 | 1,624 | 1,660 | |||||||||||||||||
| Intangible asset amortization expense | (254) | (247) | (247) | |||||||||||||||||
| Impairment and other charges | (66) | (87) | (92) | |||||||||||||||||
| Other, net | (210) | (360) | (203) | |||||||||||||||||
| Total unallocated, net | 988 | 930 | 1,118 | |||||||||||||||||
| Total consolidated operating profit | $ | 7,731 | $ | 7,013 | $ | 8,507 | ||||||||||||||
(a)Operating profit by segment includes certain immaterial items, such as other income (primarily equity earnings) that are not presented separately in the table. Accordingly, the difference between sales less operating costs and expenses may not equal operating profit by segment.
Unallocated Items
Business segment operating profit excludes the FAS/CAS pension operating adjustment discussed below, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. Government Cost Accounting Standards (CAS) or Federal Acquisition Regulations (FAR), and other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, stock-based compensation expense, changes in the fair value of assets and liabilities for deferred compensation plans, retirement benefits, significant severance charges, significant asset impairments, gains or losses from divestitures, intangible asset amortization expense, and other miscellaneous corporate activities. Collectively these items are included in “Unallocated items” to reconcile total segment operating profit to consolidated operating profit. See “Note 1 –
Organization and Significant Accounting Policies” (under the caption “Use of Estimates”) for a discussion related to certain factors that may impact the comparability of sales and operating profit of our business segments.
FAS/CAS Pension Operating Adjustment
Our business segments’ results of operations include pension expense only as calculated under CAS, which we refer to as CAS pension cost. We recover CAS pension cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS pension cost in each of our business segments’ sales and operating costs and expenses. Our consolidated financial statements must present pension expense calculated in accordance with Financial Accounting Standards (FAS) requirements under U.S. GAAP. The operating portion of the total FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension (expense) income and total CAS pension cost. The non-service FAS pension (expense) income components are included in non-service FAS pension (expense) income in our consolidated statements of earnings. As a result, to the extent that CAS pension cost exceeds the service cost component of FAS pension (expense) income, we have a favorable FAS/CAS pension operating adjustment.
The total FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension (expense) income for our qualified defined benefit pension plans, were as follows (in millions):
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Total FAS (expense) income and CAS cost | ||||||||||||||||||||
| FAS pension (expense) income | $ | (924) | $ | 2 | $ | 378 | ||||||||||||||
| Less: CAS pension cost | 1,568 | 1,684 | 1,725 | |||||||||||||||||
| Total FAS/CAS pension adjustment | $ | 644 | $ | 1,686 | $ | 2,103 | ||||||||||||||
| Service and non-service cost reconciliation | ||||||||||||||||||||
| FAS pension service cost | $ | (50) | $ | (60) | $ | (65) | ||||||||||||||
| Less: CAS pension cost | 1,568 | 1,684 | 1,725 | |||||||||||||||||
| Total FAS/CAS pension operating adjustment | 1,518 | 1,624 | 1,660 | |||||||||||||||||
| Non-service FAS pension (expense) income | (874) | 62 | 443 | |||||||||||||||||
| Total FAS/CAS pension adjustment | $ | 644 | $ | 1,686 | $ | 2,103 | ||||||||||||||
The decrease in the FAS/CAS pension adjustment in 2025 was principally driven by a noncash, non-operating pension settlement charge of $479 million ($377 million, or $1.63 per share, after-tax) in connection with the transfer of $943 million of our gross defined benefit pension obligations and related plan assets to insurance companies in December 2025. See “Note 11 – Retirement Benefits” for more information.
Intersegment Sales
Sales between our business segments are excluded from our consolidated and segment operating results as these activities are eliminated in consolidation. Intersegment sales for each of our business segments were as follows (in millions):
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Intersegment sales | ||||||||||||||||||||
| Aeronautics | $ | 381 | $ | 377 | $ | 303 | ||||||||||||||
| Missiles and Fire Control | 868 | 804 | 688 | |||||||||||||||||
| Rotary and Mission Systems | 2,371 | 2,320 | 2,125 | |||||||||||||||||
| Space | 328 | 392 | 358 | |||||||||||||||||
| Total intersegment sales | $ | 3,948 | $ | 3,893 | $ | 3,474 | ||||||||||||||
Disaggregation of Sales
Sales by products and services, contract type, customer category and geographic region for each of our business segments were as follows (in millions):
| 2025 | ||||||||||||||||||||||||||||||||
| Aeronautics | MFC | RMS | Space | Total | ||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||||||
| Products | $ | 24,617 | $ | 12,977 | $ | 14,188 | $ | 10,872 | $ | 62,654 | ||||||||||||||||||||||
| Services | 5,640 | 1,473 | 3,124 | 2,157 | 12,394 | |||||||||||||||||||||||||||
| Total sales | $ | 30,257 | $ | 14,450 | $ | 17,312 | $ | 13,029 | $ | 75,048 | ||||||||||||||||||||||
| Sales by contract type | ||||||||||||||||||||||||||||||||
| Fixed-price | $ | 20,393 | $ | 10,523 | $ | 10,766 | $ | 3,518 | $ | 45,200 | ||||||||||||||||||||||
| Cost-reimbursable | 9,864 | 3,927 | 6,546 | 9,511 | 29,848 | |||||||||||||||||||||||||||
| Total sales | $ | 30,257 | $ | 14,450 | $ | 17,312 | $ | 13,029 | $ | 75,048 | ||||||||||||||||||||||
| Sales by customer | ||||||||||||||||||||||||||||||||
| U.S. Government | $ | 19,307 | $ | 10,194 | $ | 11,126 | $ | 12,785 | $ | 53,412 | ||||||||||||||||||||||
International (a) | 10,916 | 4,245 | 5,967 | 215 | 21,343 | |||||||||||||||||||||||||||
| U.S. commercial and other | 34 | 11 | 219 | 29 | 293 | |||||||||||||||||||||||||||
| Total sales | $ | 30,257 | $ | 14,450 | $ | 17,312 | $ | 13,029 | $ | 75,048 | ||||||||||||||||||||||
| Sales by geographic region | ||||||||||||||||||||||||||||||||
| United States | $ | 19,341 | $ | 10,205 | $ | 11,345 | $ | 12,814 | $ | 53,705 | ||||||||||||||||||||||
| Europe | 5,567 | 1,728 | 1,411 | 99 | 8,805 | |||||||||||||||||||||||||||
| Asia Pacific | 3,825 | 1,065 | 2,816 | 109 | 7,815 | |||||||||||||||||||||||||||
| Middle East | 589 | 1,383 | 885 | 7 | 2,864 | |||||||||||||||||||||||||||
| Other | 935 | 69 | 855 | — | 1,859 | |||||||||||||||||||||||||||
| Total sales | $ | 30,257 | $ | 14,450 | $ | 17,312 | $ | 13,029 | $ | 75,048 | ||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||||||
| Aeronautics | MFC | RMS | Space | Total | ||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||||||
| Products | $ | 23,598 | $ | 11,275 | $ | 14,005 | $ | 10,399 | $ | 59,277 | ||||||||||||||||||||||
| Services | 5,020 | 1,407 | 3,259 | 2,080 | 11,766 | |||||||||||||||||||||||||||
| Total sales | $ | 28,618 | $ | 12,682 | $ | 17,264 | $ | 12,479 | $ | 71,043 | ||||||||||||||||||||||
| Sales by contract type | ||||||||||||||||||||||||||||||||
| Fixed-price | $ | 19,603 | $ | 8,774 | $ | 10,870 | $ | 3,481 | $ | 42,728 | ||||||||||||||||||||||
| Cost-reimbursable | 9,015 | 3,908 | 6,394 | 8,998 | 28,315 | |||||||||||||||||||||||||||
| Total sales | $ | 28,618 | $ | 12,682 | $ | 17,264 | $ | 12,479 | $ | 71,043 | ||||||||||||||||||||||
| Sales by customer | ||||||||||||||||||||||||||||||||
| U.S. Government | $ | 19,314 | $ | 9,043 | $ | 11,469 | $ | 12,218 | $ | 52,044 | ||||||||||||||||||||||
International (a) | 9,182 | 3,629 | 5,463 | 241 | 18,515 | |||||||||||||||||||||||||||
| U.S. commercial and other | 122 | 10 | 332 | 20 | 484 | |||||||||||||||||||||||||||
| Total sales | $ | 28,618 | $ | 12,682 | $ | 17,264 | $ | 12,479 | $ | 71,043 | ||||||||||||||||||||||
| Sales by geographic region | ||||||||||||||||||||||||||||||||
| United States | $ | 19,436 | $ | 9,053 | $ | 11,801 | $ | 12,238 | $ | 52,528 | ||||||||||||||||||||||
| Europe | 5,071 | 1,327 | 1,243 | 75 | 7,716 | |||||||||||||||||||||||||||
| Asia Pacific | 2,763 | 763 | 2,556 | 159 | 6,241 | |||||||||||||||||||||||||||
| Middle East | 808 | 1,473 | 787 | 7 | 3,075 | |||||||||||||||||||||||||||
| Other | 540 | 66 | 877 | — | 1,483 | |||||||||||||||||||||||||||
| Total sales | $ | 28,618 | $ | 12,682 | $ | 17,264 | $ | 12,479 | $ | 71,043 | ||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||
| Aeronautics | MFC | RMS | Space | Total | ||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||||||
| Products | $ | 22,758 | $ | 9,919 | $ | 12,913 | $ | 10,675 | $ | 56,265 | ||||||||||||||||||||||
| Services | 4,716 | 1,334 | 3,326 | 1,930 | 11,306 | |||||||||||||||||||||||||||
| Total sales | $ | 27,474 | $ | 11,253 | $ | 16,239 | $ | 12,605 | $ | 67,571 | ||||||||||||||||||||||
| Sales by contract type | ||||||||||||||||||||||||||||||||
| Fixed-price | $ | 18,664 | $ | 7,661 | $ | 10,403 | $ | 3,276 | $ | 40,004 | ||||||||||||||||||||||
| Cost-reimbursable | 8,810 | 3,592 | 5,836 | 9,329 | 27,567 | |||||||||||||||||||||||||||
| Total sales | $ | 27,474 | $ | 11,253 | $ | 16,239 | $ | 12,605 | $ | 67,571 | ||||||||||||||||||||||
| Sales by customer | ||||||||||||||||||||||||||||||||
| U.S. Government | $ | 18,311 | $ | 7,769 | $ | 10,961 | $ | 12,382 | $ | 49,423 | ||||||||||||||||||||||
International (a) | 9,034 | 3,473 | 4,983 | 154 | 17,644 | |||||||||||||||||||||||||||
| U.S. commercial and other | 129 | 11 | 295 | 69 | 504 | |||||||||||||||||||||||||||
| Total sales | $ | 27,474 | $ | 11,253 | $ | 16,239 | $ | 12,605 | $ | 67,571 | ||||||||||||||||||||||
| Sales by geographic region | ||||||||||||||||||||||||||||||||
| United States | $ | 18,440 | $ | 7,780 | $ | 11,256 | $ | 12,451 | $ | 49,927 | ||||||||||||||||||||||
| Europe | 4,898 | 786 | 1,265 | 62 | 7,011 | |||||||||||||||||||||||||||
| Asia Pacific | 2,800 | 687 | 2,275 | 89 | 5,851 | |||||||||||||||||||||||||||
| Middle East | 987 | 1,844 | 721 | 2 | 3,554 | |||||||||||||||||||||||||||
| Other | 349 | 156 | 722 | 1 | 1,228 | |||||||||||||||||||||||||||
| Total sales | $ | 27,474 | $ | 11,253 | $ | 16,239 | $ | 12,605 | $ | 67,571 | ||||||||||||||||||||||
(a)International sales include FMS contracted through the U.S. Government, direct commercial sales with international governments and commercial and other sales to international customers.
Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Sales for the F-35 program represented approximately 27% of our consolidated sales during 2025 and 26% during both 2024 and 2023.
Capital Expenditures and PP&E Depreciation and Software Amortization
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Capital expenditures | ||||||||||||||||||||
| Aeronautics | $ | 503 | $ | 593 | $ | 535 | ||||||||||||||
| Missiles and Fire Control | 235 | 265 | 252 | |||||||||||||||||
| Rotary and Mission Systems | 243 | 230 | 220 | |||||||||||||||||
| Space | 342 | 366 | 455 | |||||||||||||||||
| Total business segment capital expenditures | 1,323 | 1,454 | 1,462 | |||||||||||||||||
| Corporate activities | 326 | 231 | 229 | |||||||||||||||||
| Total capital expenditures | $ | 1,649 | $ | 1,685 | $ | 1,691 | ||||||||||||||
| PP&E depreciation and software amortization | ||||||||||||||||||||
| Aeronautics | $ | 474 | $ | 452 | $ | 416 | ||||||||||||||
| Missiles and Fire Control | 192 | 183 | 175 | |||||||||||||||||
| Rotary and Mission Systems | 235 | 227 | 220 | |||||||||||||||||
| Space | 311 | 270 | 221 | |||||||||||||||||
| Total business segment depreciation and amortization | 1,212 | 1,132 | 1,032 | |||||||||||||||||
Corporate activities (a) | 475 | 427 | 398 | |||||||||||||||||
| Total depreciation and amortization | $ | 1,687 | $ | 1,559 | $ | 1,430 | ||||||||||||||
(a)Includes amortization of purchased intangibles.
Assets
Total assets for each of our business segments were as follows (in millions):
| 2025 | 2024 | |||||||||||||
| Assets | ||||||||||||||
| Aeronautics | $ | 14,673 | $ | 13,223 | ||||||||||
| Missiles and Fire Control | 6,304 | 5,952 | ||||||||||||
| Rotary and Mission Systems | 16,576 | 17,025 | ||||||||||||
| Space | 7,755 | 7,388 | ||||||||||||
| Total business segment assets | 45,308 | 43,588 | ||||||||||||
Corporate assets (a) | 14,532 | 12,029 | ||||||||||||
| Total assets | $ | 59,840 | $ | 55,617 | ||||||||||
(a)Corporate assets primarily include cash and cash equivalents, deferred income taxes, assets for the portion of environmental costs that are probable of future recovery, property, plant and equipment used in our corporate operations, assets held in a trust for deferred compensation plans, and other marketable investments.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 29, 2026 | Showing above |
| 2024 | Jan 28, 2025 | |
| 2023 | Jan 23, 2024 | |
| 2022 | Jan 26, 2023 | |
| 2021 | Jan 25, 2022 | |
| 2020 | Jan 28, 2021 | |
| 2019 | Feb 7, 2020 | |
| 2018 | Feb 8, 2019 | |
| 2017 | Feb 6, 2018 | |
| 2016 | Feb 9, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.