Lockheed Martin Corporation: A Comprehensive Overview

Lockheed Martin Corporation stands as a global titan in the aerospace, defense, and security sectors, renowned for its innovative technologies and unwavering commitment to advancing national security. With a workforce of approximately 120,000 dedicated professionals, the company delivers cutting-edge solutions that empower its customers to address complex global challenges.

Detailed Company Profile

Lockheed Martin Corporation is a global aerospace and defense company headquartered at 6801 Rockledge Drive, Bethesda, MD 20817. The company is principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. It also provides a broad spectrum of management, engineering, technical, scientific, logistics, system integration, and cybersecurity services. Operating primarily in defense, space, intelligence, homeland security, and information technology, Lockheed Martin serves both U.S. and international customers, with a significant focus on contracts with the U.S. Government, including all branches of the U.S. military and NASA.

The company operates through four primary business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. These segments collectively generated net sales of $71.043 billion in 2024, reflecting a 5.1% increase from $67.571 billion in 2023. Lockheed Martin’s strategic vision, branded as 21st Century Security, emphasizes the integration of digital technologies such as 5G, artificial intelligence (AI), distributed cloud computing, and software-defined networks to deliver advanced, resilient, and interoperable solutions. The company’s 1LMX initiative, a comprehensive business and digital transformation program, drives operational efficiencies by standardizing processes, modernizing systems, and enhancing collaboration.

With a workforce dedicated to innovation, Lockheed Martin maintains a robust portfolio of patents, trademarks, copyrights, and trade secrets, safeguarding its intellectual property to maintain a competitive edge. The company’s operations are heavily regulated, requiring compliance with U.S. Government laws, including the Defense Federal Acquisition Regulation Supplement (DFARS) and the Federal Acquisition Regulation (FAR). Additionally, Lockheed Martin navigates complex environmental regulations and invests in employee safety, health, and professional development to sustain its competitive position.

Business Segments

Lockheed Martin organizes its operations into four business segments, each focusing on distinct areas of aerospace and defense. Below is a detailed breakdown of each segment, including their activities, major programs, and revenue contributions in 2024.

1. Aeronautics

• Description: The Aeronautics segment focuses on the research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircraft. This includes combat and air mobility aircraft, unmanned air vehicles, and related technologies. The segment also manages contracts for various classified programs.
• Major Programs:
  • F-35 Lightning II: An international multi-role, multi-variant, fifth-generation stealth fighter, contributing 26% of total consolidated net sales and 65% of Aeronautics’ net sales in 2024.
  • C-130 Hercules: An international tactical airlifter.
  • F-16 Fighting Falcon: A combat-proven, international multi-role fighter.
  • F-22 Raptor: An air dominance and multi-role fifth-generation stealth fighter.
• Revenue in 2024: $28.618 billion
• Revenue Breakup %: 40.3% of total net sales ($71.043 billion)
• Key Highlights: Aeronautics saw a 4% sales increase in 2024, driven by higher volume on F-35 sustainment, production, and development contracts, as well as F-16 production ramp-up. However, operating profit decreased by 11% due to lower profit booking rate adjustments, particularly on classified programs.

2. Missiles and Fire Control (MFC)

• Description: MFC is engaged in the development and production of air and missile defense systems, tactical missiles, precision strike weapons, and fire control systems. The segment also supports classified programs and serves international customers, contributing 29% of its sales from international markets in 2024.
• Major Programs:
  • PAC-3: A missile defense system.
  • Terminal High Altitude Area Defense (THAAD): A missile defense system.
  • Guided Multiple Launch Rocket System (GMLRS): A precision strike weapon.
  • High Mobility Artillery Rocket System (HIMARS): A mobile rocket launcher.
  • Joint Air-to-Surface Standoff Missile (JASSM): A long-range precision missile.
  • Long Range Anti-Ship Missile (LRASM): An anti-ship missile.
• Revenue in 2024: $12.682 billion
• Revenue Breakup %: 17.8% of total net sales
• Key Highlights: MFC’s net sales increased by 12.7% in 2024, driven by production ramp-up on GMLRS, HIMARS, JASSM, and LRASM programs. The segment’s focus on air and missile defense continues to attract significant international interest.

3. Rotary and Mission Systems (RMS)

• Description: RMS designs, manufactures, services, and supports military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, mission systems, and simulation and training solutions. It also manages classified programs.
• Major Programs:
  • Sikorsky Helicopter Programs: Includes Black Hawk, Seahawk, CH-53K King Stallion, Combat Rescue Helicopter (CRH), and VH-92A (Presidential helicopter, with final delivery in 2024).
  • Integrated Warfare Systems and Sensors (IWSS): Includes the Aegis Combat System, a key air and missile defense system for the U.S. Navy and international customers.
  • Command, Control, Battle Management, and Communications (C2BMC): A missile defense integration program.
• Revenue in 2024: $17.264 billion
• Revenue Breakup %: 24.3% of total net sales
• Key Highlights: RMS recorded a 6% sales increase in 2024, driven by higher volume on radar programs, the Canadian Surface Combatant (CSC) program, and Sikorsky helicopter production. Operating profit increased marginally, supported by higher volume despite challenges from the U.S. Army’s cancellation of the Future Attack Reconnaissance Aircraft (FARA) program.

4. Space

• Description: The Space segment focuses on the design, development, and production of satellites, space transportation systems, and missile defense systems. It also provides classified systems and services for national security and includes a 50% ownership interest in United Launch Alliance (ULA).
• Major Programs:
  • Global Positioning System (GPS) III: Advanced positioning, navigation, and timing satellites, with the seventh satellite launched in 2024.
  • Next Generation Interceptor (NGI): A modern interceptor for homeland missile defense.
  • GeoXO: A commercial civil space program.
  • Fleet Ballistic Missile (FBM) Mk7: A strategic missile defense program.
• Revenue in 2024: $12.479 billion
• Revenue Breakup %: 17.6% of total net sales
• Key Highlights: Space segment sales decreased slightly by 1% in 2024 due to lower volume on certain programs, but backlog increased due to higher orders for classified programs, GeoXO, and FBM Mk7. Equity earnings from ULA contributed $45 million to operating profit in 2024.

Revenue Breakup Summary:

• Aeronautics: 40.3%
• RMS: 24.3%
• MFC: 17.8%
• Space: 17.6%

Products and Services

Lockheed Martin’s portfolio encompasses a wide range of products and services tailored to defense, space, and intelligence needs. The company generates revenue from both product sales and service contracts, with products accounting for 83.4% and services 16.6% of total net sales in 2024.

Products

• Description: Products include advanced military aircraft, missiles, missile defense systems, helicopters, radar systems, and space systems. These are primarily developed under long-term contracts with the U.S. Government and international customers.
• Key Products:
  • F-35 Lightning II: A fifth-generation stealth fighter, generating $18.468 billion (26% of total net sales) in 2024.
  • C-130 Hercules: A tactical airlifter used globally.
  • F-16 Fighting Falcon: A multi-role fighter with strong international demand.
  • F-22 Raptor: A fifth-generation stealth fighter for air dominance.
  • Sikorsky Helicopters: Includes Black Hawk, Seahawk, CH-53K King Stallion, CRH, and VH-92A.
  • PAC-3 and THAAD: Missile defense systems for air and missile threats.
  • GMLRS, HIMARS, JASSM, LRASM: Precision strike and anti-ship missiles.
  • Aegis Combat System: A naval air and missile defense system.
  • GPS III Satellites: Advanced navigation and timing systems.
  • Next Generation Interceptor (NGI): A ballistic missile defense interceptor.
• Revenue in 2024: $59.277 billion
• Revenue Breakup %: 83.4% of total net sales
• Details: Product sales increased by 5% in 2024, driven by production ramp-up on missile programs (MFC), radar and helicopter programs (RMS), and F-35 and F-16 programs (Aeronautics).

Services

• Description: Services include sustainment, logistics, training, system integration, and cybersecurity support for delivered products. These are often part of long-term contracts, particularly for the F-35 program.
• Key Services:
  • F-35 Sustainment: Logistics and training support for delivered F-35 aircraft.
  • Sikorsky Helicopter Support: Maintenance and training for helicopter fleets.
  • Aegis System Support: Sustainment for naval defense systems.
  • Cybersecurity Services: Protection for defense and intelligence systems.
  • Space System Support: Maintenance for satellites and missile defense systems.
• Revenue in 2024: $11.766 billion
• Revenue Breakup %: 16.6% of total net sales
• Details: Service sales increased by 2% in 2024, primarily due to higher volume on F-35 sustainment contracts.

Revenue Breakup by Segment and Type:

• Aeronautics:
  • Products: $23.598 billion (82.4% of segment sales)
  • Services: $5.020 billion (17.6% of segment sales)
• MFC:
  • Products: $11.275 billion (88.9% of segment sales)
  • Services: $1.407 billion (11.1% of segment sales)
• RMS:
  • Products: $13.796 billion (79.9% of segment sales)
  • Services: $3.468 billion (20.1% of segment sales)
• Space:
  • Products: $10.608 billion (85.0% of segment sales)
  • Services: $1.871 billion (15.0% of segment sales)

Company History

Lockheed Martin’s history is a saga of innovation, mergers, and strategic growth, evolving from its origins in the early 20th century to its current status as a global defense leader.

• Early Beginnings: The company traces its roots to the Lockheed Corporation, founded in 1912 by the Loughead brothers (later renamed Lockheed), and the Martin Marietta Corporation, established in 1961. Lockheed began as an aircraft manufacturer, producing iconic planes like the P-38 Lightning during World War II, while Martin Marietta focused on missiles and space systems.
• Merger in 1995: The modern Lockheed Martin was formed through the merger of Lockheed Corporation and Martin Marietta in 1995, creating a powerhouse in aerospace and defense. This merger combined Lockheed’s expertise in aircraft with Martin Marietta’s strengths in missiles, space systems, and electronics.
• Post-Merger Growth: The late 1990s and early 2000s saw Lockheed Martin expand through acquisitions, including the purchase of General Dynamics’ aircraft division (1993, pre-merger) and Loral Corporation’s defense electronics business (1996). These acquisitions bolstered its portfolio in fighters (F-16) and electronics.
• F-35 Program Milestone: In 2001, Lockheed Martin won the Joint Strike Fighter contract, leading to the development of the F-35 Lightning II, which became its largest revenue-generating program by 2024, contributing 26% of total sales.
• Strategic Acquisitions: The company continued to shape its portfolio through strategic acquisitions, such as the 2024 acquisition of Terran Orbital for $231 million, enhancing its space capabilities. Divestitures, like the sale of certain assets in 2023 for $170 million, reflect ongoing portfolio optimization.
• 21st Century Security and 1LMX: Introduced in the 2010s and emphasized in 2024, the 21st Century Security strategy integrates digital technologies like AI and 5G to enhance defense capabilities. The 1LMX initiative, launched to drive digital transformation, has standardized processes and modernized systems, boosting efficiency.
• Recent Milestones: In 2024, Lockheed Martin launched the seventh GPS III satellite, advanced the NGI program, and completed the final VH-92A delivery for the U.S. Marine One mission. Despite challenges like the U.S. Army’s cancellation of the FARA program, the company maintained strong growth, with a backlog of $176 billion by year-end.

Brands

Lockheed Martin operates under several recognized brands, primarily associated with its major product lines. Below is a detailed list of key brands and their contributions to revenue in 2024.

• F-35 Lightning II:
  • Description: A family of single-seat, single-engine, all-weather stealth multirole fighters designed for air superiority and strike missions.
  • Revenue Contribution: $18.468 billion (26% of total net sales)
  • Details: The F-35 program is the cornerstone of Lockheed Martin’s Aeronautics segment, with international participation from seven partner countries and twelve Foreign Military Sales (FMS) customers. It includes development, production, and sustainment contracts.
• Sikorsky:
  • Description: A leading helicopter brand producing Black Hawk, Seahawk, CH-53K King Stallion, CRH, and VH-92A helicopters.
  • Revenue Contribution: Approximately $2.408 billion (estimated 14% of RMS sales, or 3.4% of total net sales)
  • Details: Sikorsky helicopters serve military and commercial customers globally, with significant production increases in 2024 despite the FARA program cancellation.
• Aegis Combat System:
  • Description: An advanced naval air and missile defense system used by the U.S. Navy and international allies.
  • Revenue Contribution: Approximately $1.726 billion (estimated 10% of RMS sales, or 2.4% of total net sales)
  • Details: Part of the IWSS portfolio, Aegis supports sea and land-based missile defense, with growing international demand.
• PAC-3 and THAAD:
  • Description: Missile defense systems designed to intercept short- and medium-range ballistic missiles.
  • Revenue Contribution: Approximately $3.804 billion (estimated 30% of MFC sales, or 5.4% of total net sales)
  • Details: These systems are critical to MFC’s air and missile defense portfolio, with strong international sales (29% of MFC revenue).
• GPS III:
  • Description: A series of advanced navigation and timing satellites for the U.S. Space Force.
  • Revenue Contribution: Approximately $1.247 billion (estimated 10% of Space sales, or 1.8% of total net sales)
  • Details: The 2024 launch of the seventh GPS III satellite underscores Lockheed Martin’s leadership in space navigation.

Revenue Breakup by Brand (Estimated):

• F-35: 26%
• Sikorsky: 3.4%
• Aegis: 2.4%
• PAC-3/THAAD: 5.4%
• GPS III: 1.8%
• Other (C-130, F-16, F-22, GMLRS, HIMARS, JASSM, LRASM, etc.): 61%

Geographical Presence

Lockheed Martin maintains a global presence, with operations primarily in the U.S. and significant international sales across Europe, Asia Pacific, the Middle East, and other regions. Below is a detailed breakdown of its geographical presence and revenue distribution in 2024.

• United States:
  • Description: The primary market, serving all branches of the U.S. military, NASA, and other government agencies. The company operates 356 locations, including offices, manufacturing plants, warehouses, and laboratories, primarily in the U.S.
  • Revenue in 2024: $49.927 billion
  • Revenue Breakup %: 70.3% of total net sales
  • Details: The U.S. market drives the majority of sales across all segments, with Aeronautics (F-35, F-16) and Space (GPS III, NGI) being key contributors.
• Europe:
  • Description: Includes sales to countries like the UK, Poland, and others, primarily through FMS and direct commercial contracts.
  • Revenue in 2024: $7.011 billion
  • Revenue Breakup %: 9.9% of total net sales
  • Details: Aeronautics contributes significantly ($4.898 billion), driven by F-35 sales to European partners.
• Asia Pacific:
  • Description: Encompasses markets like Australia, Japan, and South Korea, with strong demand for F-35, F-16, and missile defense systems.
  • Revenue in 2024: $5.851 billion
  • Revenue Breakup %: 8.2% of total net sales
  • Details: RMS ($2.275 billion) and Aeronautics ($2.800 billion) lead sales, with growing interest in Sikorsky helicopters and PAC-3 systems.
• Middle East:
  • Description: Includes sales to countries like Saudi Arabia and the UAE, primarily for missile defense systems and helicopters.
  • Revenue in 2024: $3.554 billion
  • Revenue Breakup %: 5.0% of total net sales
  • Details: MFC ($1.844 billion) dominates with PAC-3 and THAAD sales, reflecting strong regional demand for missile defense.
• Other Regions:
  • Description: Includes Canada, India, and other markets, with sales driven by F-35 and C-130 programs.
  • Revenue in 2024: $1.228 billion
  • Revenue Breakup %: 1.7% of total net sales
  • Details: RMS ($0.722 billion) and Aeronautics ($0.349 billion) contribute to sales in these regions.

Revenue Breakup by Region:

• United States: 70.3%
• Europe: 9.9%
• Asia Pacific: 8.2%
• Middle East: 5.0%
• Other: 1.7%

Financial Performance

Lockheed Martin’s financial performance in 2024 reflects robust growth and operational efficiency. Below are the consolidated financial statements for 2024, 2023, and 2022, presented in tables.

Consolidated Statements of Earnings

(in millions, except per share data)	2024	2023	2022
Net Sales
Products	$59,277	$56,265	$55,466
Services	11,766	11,306	10,518
Total Net Sales	71,043	67,571	65,984
Cost of Sales
Products	(54,825)	(51,793)	(50,776)
Services	(10,563)	(10,373)	(9,468)
Impairment and Severance Charges	(87)	(92)	–
Other Unallocated, Net	1,445	2,194	2,604
Total Cost of Sales	(64,030)	(60,064)	(57,640)
Gross Profit	7,013	7,507	8,344
Other Income (Expense), Net	209	398	4
Operating Profit	7,222	7,905	8,348
Interest Expense	(1,038)	(916)	(623)
Non-service FAS Pension Income (Expense)	2	378	(1,058)
Other Non-operating Income (Expense), Net	25	(74)	(113)
Earnings Before Income Taxes	6,211	8,095	6,557
Income Tax Expense	(875)	(1,175)	(825)
Net Earnings	5,336	6,920	5,732
Earnings Per Common Share
Basic	22.39	27.65	21.74
Diluted	22.31	27.55	21.66

Consolidated Balance Sheets

(in millions, except par value)	2024	2023
Assets
Current Assets
Cash and Cash Equivalents	2,483	1,442
Receivables, Net	2,351	2,132
Contract Assets	12,957	13,183
Inventories	3,474	3,132
Other Current Assets	584	632
Total Current Assets	21,849	20,489
Noncurrent Assets
Property, Plant, and Equipment, Net	8,350	8,365
Goodwill	10,831	10,790
Intangible Assets, Net	1,725	1,972
Deferred Income Taxes	3,605	3,672
Other Noncurrent Assets	9,257	7,168
Total Assets	55,617	52,456
Liabilities and Equity
Current Liabilities
Accounts Payable	2,695	2,314
Contract Liabilities	9,967	9,100
Salaries, Benefits, and Payroll Taxes	3,398	3,108
Current Maturities of Long-term Debt	567	168
Other Current Liabilities	3,009	2,133
Total Current Liabilities	19,636	16,823
Noncurrent Liabilities
Long-term Debt, Net	17,715	17,460
Accrued Pension Liabilities	5,361	5,243
Other Noncurrent Liabilities	6,572	6,095
Total Liabilities	49,284	45,621
Stockholders’ Equity
Common Stock, $1 Par Value Per Share	234	240
Additional Paid-in Capital	–	–
Retained Earnings	14,551	15,398
Accumulated Other Comprehensive Loss	(8,452)	(8,803)
Total Stockholders’ Equity	6,333	6,835
Total Liabilities and Equity	55,617	52,456

Consolidated Statements of Cash Flows

(in millions)	2024	2023	2022
Operating Activities
Net Earnings	5,336	6,920	5,732
Adjustments
Depreciation and Amortization	1,559	1,430	1,404
Stock-based Compensation	258	250	235
Deferred Income Taxes	(33)	10	(735)
Pension Settlement Charge	–	–	1,470
Impairment and Severance Charges	87	92	–
Net Losses (Gains) on Investments	(22)	64	114
Changes in Assets and Liabilities
Receivables, Net	(219)	29	(343)
Contract Assets	226	(606)	(1,689)
Inventories	(342)	(51)	195
Accounts Payable	381	259	351
Contract Liabilities	867	901	568
Income Taxes	147	(361)	151
Qualified Defined Benefit Pension Plans	(990)	–	(171)
Other, Net	(258)	(16)	1,695
Net Cash Provided by Operating Activities	6,972	7,920	7,802
Investing Activities
Capital Expenditures	(1,685)	(1,691)	(1,670)
Acquisitions of Businesses, Net of Cash Acquired	(231)	–	–
Other, Net	170	64	85
Net Cash Used for Investing Activities	(1,746)	(1,627)	(1,585)
Financing Activities
Issuance of Long-term Debt, Net of Costs	1,986	1,975	6,151
Repayments of Long-term Debt	(168)	(115)	(2,250)
Repurchases of Common Stock	(2,000)	(6,000)	(7,900)
Dividends Paid	(3,805)	(3,056)	(2,956)
Other, Net	(152)	(135)	(115)
Net Cash Used for Financing Activities	(4,139)	(7,331)	(7,070)
Net Change in Cash and Cash Equivalents	1,041	(1,105)	(1,057)
Cash and Cash Equivalents at Beginning of Year	1,442	2,547	3,604
Cash and Cash Equivalents at End of Year	2,483	1,442	2,547

Subsidiaries, Wholly-Owned Subsidiaries, and Associates

Lockheed Martin operates through several subsidiaries and holds a significant equity investment in United Launch Alliance (ULA). Below is a detailed list.

• Wholly-Owned Subsidiaries:
  • Lockheed Martin Investment Management Company (LMIMCo):
    • Description: Manages investment decisions for postretirement benefit plan assets, ensuring optimal funding and returns.
    • Revenue Contribution: Not directly revenue-generating; supports corporate operations.
    • Details: LMIMCo oversees pension plan assets, with investment objectives to minimize funding contributions and ensure long-term plan viability.
  • Terran Orbital:
    • Description: Acquired in 2024 for $231 million, Terran Orbital enhances Lockheed Martin’s space capabilities, focusing on small satellite manufacturing.
    • Revenue Contribution: Minimal in 2024; integrated into the Space segment.
    • Details: The acquisition strengthens Lockheed Martin’s position in commercial and national security space programs.
• Associates:
  • United Launch Alliance (ULA):
    • Description: A 50% joint venture with Boeing, providing expendable launch services to the U.S. Government and commercial customers.
    • Revenue Contribution: Equity earnings of $45 million in 2024 (4% of Space segment operating profit).
    • Details: ULA’s contributions are recorded under the equity method, with investments valued at $551 million as of December 31, 2024.
• Other Joint Ventures:
  • Description: Lockheed Martin participates in joint ventures for international programs, often related to offset obligations. These ventures involve products and services dissimilar to core activities.
  • Revenue Contribution: Not separately reported; impacts Aeronautics, MFC, and RMS through offset agreements.
  • Details: Outstanding offset obligations totaled $19.1 billion as of December 31, 2024, extending through 2044.

Revenue Breakup by Subsidiary/Associate:

• Terran Orbital: <1% (recently acquired)
• ULA: Indirect contribution via $45 million equity earnings
• Other subsidiaries: Integrated into segment revenues

Physical Properties

Lockheed Martin owns or leases 356 locations, primarily in the U.S., including offices, manufacturing plants, warehouses, service centers, laboratories, and other facilities. Additionally, it manages or occupies nine government-owned facilities under long-term contracts.

• Key Locations:
  • Headquarters: 6801 Rockledge Drive, Bethesda, MD 20817
  • Manufacturing Plants:
    • Fort Worth, TX: Primary site for F-35 and F-16 production (Aeronautics).
    • Marietta, GA: Home to C-130 Hercules assembly.
    • Camden, AR: Missile production for MFC (GMLRS, HIMARS, JASSM, LRASM).
    • Troy, AL: PAC-3 and THAAD manufacturing.
    • Stratford, CT: Sikorsky helicopter production (Black Hawk, Seahawk, CH-53K).
    • Sunnyvale, CA: Space segment facilities for satellite and missile defense programs.
  • Other Facilities:
    • Orlando, FL: RMS radar and missile defense system development.
    • Moorestown, NJ: Aegis Combat System engineering.
    • Littleton, CO: Space systems design and manufacturing.
  • Government-Owned Facilities: Nine facilities, including testing and integration sites, managed under U.S. Government contracts.
• Details: The company’s facilities are critical to its operations, supporting production, R&D, and sustainment. Environmental remediation liabilities for certain sites totaled $677 million in 2024, with $619 million recoverable from the U.S. Government.

Founders Details

Lockheed Martin, as it exists today, is the result of a 1995 merger between Lockheed Corporation and Martin Marietta. The original founders of these predecessor companies are:

• Lockheed Corporation:
  • Founders: Allan and Malcolm Loughead (pronounced “Lockheed”)
  • Details: Founded in 1912 as the Alco Hydro-Aeroplane Company in Santa Barbara, CA, the company was renamed Lockheed Aircraft Company in 1926. The Loughead brothers were aviation pioneers, designing early aircraft like the Model G and later the P-38 Lightning. Allan Loughead’s vision for innovative aircraft laid the foundation for Lockheed’s dominance in military aviation.
• Martin Marietta:
  • Founder: Glenn L. Martin
  • Details: Founded in 1912 as the Glenn L. Martin Company, it merged with American-Marietta in 1961 to form Martin Marietta. Glenn L. Martin was a key figure in early aviation, developing bombers and aerospace systems. The company expanded into missiles and space systems, complementing Lockheed’s portfolio.

The 1995 merger created a unified entity under the leadership of Norman Augustine (from Martin Marietta) and Daniel Tellep (from Lockheed), with no single “founder” for the modern corporation.

Board of Directors

As of March 1, 2025, Lockheed Martin’s Board of Directors comprises 13 members, with James D. Taiclet serving as Chairman. Below is a detailed list:

1. James D. Taiclet (Age 64)
   • Position: Chairman, President, and CEO
   • Details: Joined as President and CEO in June 2020, became Chairman in March 2021. Previously Chairman, President, and CEO of American Tower Corporation (2004–2020).
2. Thomas J. Falk (Independent Lead Director)
   • Position: Retired Chairman and CEO, Kimberly-Clark Corporation
   • Details: Brings expertise in corporate governance and consumer goods.
3. John C. Aquilino
   • Position: Retired Admiral, U.S. Navy
   • Details: Offers military and strategic expertise from naval service.
4. David B. Burritt
   • Position: President and CEO, United States Steel Corporation
   • Details: Provides industrial and manufacturing insights.
5. Bruce A. Carlson
   • Position: Retired General, U.S. Air Force
   • Details: Contributes deep knowledge of air force operations and defense programs.
6. Daniel F. Akerson
   • Position: Former Chairman and CEO, General Motors
   • Details: Brings automotive and corporate leadership experience.
7. Ilene S. Gordon
   • Position: Retired Chairman and CEO, Ingredion Incorporated
   • Details: Offers expertise in global business and innovation.
8. Vicki A. Hollub
   • Position: President and CEO, Occidental Petroleum
   • Details: Provides energy sector insights.
9. Jeh C. Johnson
   • Position: Former U.S. Secretary of Homeland Security
   • Details: Contributes national security and legal expertise.
10. Debra L. Reed-Klages
    • Position: Retired Chairman and CEO, Sempra Energy
    • Details: Brings energy and regulatory experience.
11. Mark E. Schwartz
    • Position: Retired General, U.S. Army
    • Details: Offers army and defense strategy expertise.
12. Heather Wilson
    • Position: Former U.S. Secretary of the Air Force
    • Details: Provides air force and policy expertise.
13. Patricia E. Yarrington
    • Position: Former CFO, Chevron Corporation
    • Details: Contributes financial and energy sector experience.

Investment Details

Lockheed Martin holds investments in joint ventures and marketable securities, primarily through its postretirement benefit plan trusts.

• United Launch Alliance (ULA):
  • Details: 50% ownership, valued at $551 million as of December 31, 2024. ULA provides launch services, contributing $45 million in equity earnings in 2024.
• Postretirement Benefit Plan Investments:
  • Details: Managed by LMIMCo, these include global equity, fixed income, private equity, real estate, hedge funds, and commodities. Total fair value was approximately $30 billion in 2024, with a 1% actual return.
  • Asset Allocation Ranges:
    • Cash and Cash Equivalents: 0–20%
    • Global Equity: 10–65%
    • Fixed Income: 10–60%
    • Private Equity Funds: 5–30%
    • Real Estate Funds: 0–20%
    • Hedge Funds: 0–20%
    • Commodities: 0–10%
  • Net Gains/Losses: Recorded net gains of $22 million in 2024, compared to losses of $64 million in 2023.
• Other Investments:
  • Terran Orbital: Acquired for $231 million in 2024, enhancing space capabilities.
  • Joint Ventures for Offset Obligations: Investments in international ventures to fulfill offset agreements, with a notional value of $19.1 billion as of December 31, 2024.

Future Investment Plans

Lockheed Martin’s future investment strategy focuses on innovation, portfolio optimization, and strategic partnerships to address evolving mission requirements. Key plans include:

• 21st Century Security: Continued investment in digital technologies (AI, 5G, cloud computing) to enhance defense capabilities. This includes developing the Golden Dome initiative and advancing NGI for missile defense.
• 1LMX Transformation: Further investment in digital transformation to streamline operations, reduce costs, and improve collaboration, driving demand and growth.
• R&D Investments: The company plans to continue significant company-funded (IR&D) and customer-funded R&D, focusing on hypersonics, classified programs, and next-generation technologies. In 2024, R&D costs were substantial, allocated to overhead and recoverable through cost-reimbursable contracts.
• Strategic Acquisitions and Divestitures: Lockheed Martin will pursue acquisitions at attractive valuations to complement its portfolio, as demonstrated by the Terran Orbital acquisition. Divestitures will optimize the portfolio for current and future customer needs.
• Pension Contributions: Potential additional contributions to qualified defined benefit pension plans, depending on ERISA requirements and asset returns. In 2024, $990 million was contributed, with future contributions to ensure plan stability.
• Capital Expenditures: Continued investment in equipment and facilities to support new and existing programs, with $1.685 billion spent in 2024. Future expenditures will focus on IT infrastructure and advanced manufacturing.
• International Expansion: Investments to support international demand, particularly for F-35, F-16, PAC-3, and THAAD, with a focus on Europe, Asia Pacific, and the Middle East.

Conclusion

Lockheed Martin Corporation exemplifies leadership in aerospace and defense, driven by a legacy of innovation, strategic vision, and global impact. Its diversified business segments, robust product and service offerings, and extensive geographical presence underscore its role as a trusted partner in national security. With a strong financial foundation, strategic investments, and a commitment to cutting-edge technologies, Lockheed Martin is poised to shape the future of defense and space exploration, fostering a safer and more secure world.