Lockheed Martin Corporation
Lockheed Martin Corporation, an aerospace and defense company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services in the United States, Europe, Asia, the Middle East, and internationally. The company operates through four segments: Aeronautics; Missiles and Fire Control (MFC); Rotary and Mission Systems (RMS); and Space. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The MFC segment provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; and ground vehicles. The RMS segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar and 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. The Space segment provides satellites; space transportation systems; strategic, advanced strike, and defensive systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government and international customers, as well as foreign military sales contracted through the U.S. government. The company was formerly known as The Lockheed Corporation and changed its name to Lockheed Martin Corporation in March 1995. Lockheed Martin Corporation was founded in 1912 and is based in Bethesda, Maryland.
What does it do?
Lockheed Martin is the world's largest defense contractor — basically the company that builds the weapons, jets, and satellites that governments use to defend their countries. Their most famous product is the F-35 fighter jet, a stealth aircraft used by the US military and over a dozen allied nations. They also make missile systems like the HIMARS rocket launcher (which became famous during the Ukraine conflict), military helicopters like the Black Hawk, and satellites for GPS and reconnaissance. If a country needs cutting-edge military technology, there's a good chance Lockheed Martin built it.
Global defense budgets are rising fast — NATO members are scrambling to hit their 2% of GDP spending targets after Russia's invasion of Ukraine changed Europe's security calculations overnight. Lockheed sits at the center of that spending surge, holding multi-decade contracts that make its revenue unusually predictable compared to most companies. With geopolitical tensions running hot across Europe, the Middle East, and Asia simultaneously, demand for exactly what Lockheed sells has rarely been higher.
How does it make money?
Lockheed makes money by selling weapons systems, aircraft, and technology to governments — primarily the US Department of Defense, which accounts for roughly 70% of its $75 billion in annual revenue. Its Aeronautics segment (home of the F-35) is the biggest earner, followed by Missiles and Fire Control, which makes rockets and precision strike systems. The company also earns long-tail revenue from maintaining and upgrading the systems it already sold, meaning a jet sold today generates service income for decades. Revenue grew from $71 billion to $75 billion year-over-year, a solid 5.6% increase.
Why do investors care?
The investment case for Lockheed rests on one big idea: governments don't cancel defense orders the way consumers stop buying gadgets, which makes Lockheed's revenue stream unusually stable and predictable. The F-35 program alone is expected to generate over $1.7 trillion in lifetime revenue across production and sustainment — it's essentially a 50-year annuity. International arms sales are a growing piece of the pie as US allies modernize their militaries. For the thesis to fully play out, Lockheed needs to keep winning new contracts, avoid costly overruns on fixed-price deals, and successfully ramp up production to meet surging global demand.
Deep Dive
MemberA full investor briefing on Lockheed Martin Corporation — history, leadership, risks, and outlook.