Lockheed Martin Q3 backlog hits record $292B

The updated 2026 outlook raises the projected ranges for sales, diluted EPS, cash from operations and free cash flow.

Rhea-AI Filing Summary

Lockheed Martin Corporation reported third-quarter 2026 sales of $20.711 billion, up 11% from $18.609 billion a year earlier, and net earnings of $1.845 billion, up 14%. Diluted earnings per share were $7.97, compared with $6.95. All four business segments reported year-over-year sales growth. Cash from operations was $3.438 billion, down $290 million, and free cash flow was $2.999 billion, down $348 million, from the prior-year quarter.

Backlog reached a record $291.984 billion as of September 27, 2026, up 27% since the second quarter; it included $52.5 billion associated with the multi-year PAC-3 MSE interceptor award. The company raised its 2026 outlook to approximately $80.0–$82.0 billion in sales, $30.35–$30.75 in diluted EPS, $10.0–$10.2 billion in cash from operations and $7.8–$8.0 billion in free cash flow.

Negotiations with the U.S. Government continued on production contracts for F-35 Lots 20 and higher. Costs incurred on the Lot 20 advance acquisition contract began exceeding current contractual authorization and funding during the third quarter of 2026. The company said that without additional U.S. Government authorization and funding, its results, cash flows and financial condition will be negatively impacted in future periods.

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Positive

• Moderate pointQuarterly sales rose 11% and net earnings rose 14% year over year.
• Moderate pointRecord backlog reached $291.984 billion on September 27, 2026, up 27% since the second quarter.

Negative

• Moderate pointQuarterly operating cash flow declined $290 million year over year.
• Moderate pointQuarterly free cash flow declined $348 million year over year.
• Moderate pointLot 20 costs began exceeding authorization and funding during Q3 2026.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Quarterly sales: $20.711 billion Quarterly net earnings: $1.845 billion Diluted earnings per share: $7.97 per share +5 more

8 metrics

Quarterly sales $20.711 billion Quarter ended September 27, 2026; $18.609 billion in the prior-year quarter

Quarterly net earnings $1.845 billion Quarter ended September 27, 2026; $1.619 billion in the prior-year quarter

Diluted earnings per share $7.97 per share Quarter ended September 27, 2026; $6.95 per share in the prior-year quarter

Cash from operations $3.438 billion Quarter ended September 27, 2026; $3.728 billion in the prior-year quarter

Free cash flow $2.999 billion Quarter ended September 27, 2026; $3.347 billion in the prior-year quarter

Backlog $291.984 billion As of September 27, 2026; up 27% since the second quarter

2026 sales outlook Approximately $80.0–$82.0 billion Current update

2026 diluted EPS outlook Approximately $30.35–$30.75 per share Current update

Key Terms

Free cash flow, Business segment operating profit, FAS/CAS pension operating adjustment, advance acquisition contract

4 terms

Free cash flow financial

"Free cash flow is a non-GAAP financial measure"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Business segment operating profit financial

"Business segment operating profit represents operating profit"

FAS/CAS pension operating adjustment financial

"FAS/CAS pension operating adjustment"

A FAS/CAS pension operating adjustment is an accounting reconciliation that aligns pension costs reported under general financial rules (FAS) with the cost-accounting rules used for government contracts (CAS). It adjusts operating income so investors can see the difference between pension expenses shown in corporate financial statements and the pension costs allowable for contract billing, similar to reconciling two different ways of tracking the same household bill. This matters because it can materially change reported profit and margins and signal whether pension costs are a paper accounting item or a real cash burden.

advance acquisition contract technical

"on the Lot 20 advance acquisition contract"

Earnings Snapshot

Sales: $20.711 billion · Guidance included

Third quarter 2026

Sales $20.711 billion Increased 11% year over year

Net earnings $1.845 billion Increased 14% year over year

Diluted earnings per share $7.97 per share Increased $1.02 year over year

Cash from operations $3.438 billion Decreased $290 million year over year

Free cash flow $2.999 billion Decreased $348 million year over year

Guidance

The 2026 outlook increased to approximately $80.0–$82.0 billion in sales, $30.35–$30.75 in diluted EPS, $10.0–$10.2 billion in cash from operations and $7.8–$8.0 billion in free cash flow.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did LMT perform in Q3 2026?

LMT reported $20.711 billion in sales and $1.845 billion in net earnings for Q3 2026; diluted EPS was $7.97. Sales rose 11% and net earnings rose 14% year over year. In Q3 2025, sales were $18.609 billion, net earnings were $1.619 billion and diluted EPS was $6.95.

Why did LMT's cash flow decline in Q3 2026?

Lockheed Martin said cash from operations and free cash flow declined primarily because customer receipts were higher in Q3 2025. Q3 2026 cash activities included $439 million of capital expenditures and $599 million of independent research and development.

What drove LMT's Missiles and Fire Control sales growth?

Missiles and Fire Control sales rose 24% to $4.501 billion in Q3 2026. Production ramps contributed higher sales of $480 million on integrated air and missile defense programs, including PAC-3 and THAAD, and $330 million on tactical and strike missile programs, including GMLRS and PrSM.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/22/2026 - 06:26 AM EDT Accepted by SEC EDGAR 10/22/2026 - 06:26 AM EDT Learn about SEC filing dates

0000936468false00009364682026-10-222026-10-22

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 

Date of Report (Date of earliest event reported): October 22, 2026

LOCKHEED MARTIN CORPORATION

(Exact name of registrant as specified in its charter) 

Maryland						1-11437			52-1893632
(State or other jurisdiction						(Commission file number)			(IRS Employer
of incorporation)									Identification No.)
6801 Rockledge Drive
Bethesda,			Maryland						20817
(Address of principal executive offices)									(Zip Code)

(301) 897-6000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol			Name of each exchange on which registered
Common Stock, $1 par value			LMT			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 22, 2026, Lockheed Martin Corporation issued a news release reporting its financial results for the quarter ended September 27, 2026. A copy of the news release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

 

Exhibit No.						Description
99.1						Lockheed Martin Corporation News Release dated October 22, 2026 (earnings release reporting Lockheed Martin Corporation’s financial results for the quarter ended September 27, 2026).
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.  

						Lockheed Martin Corporation
						(Registrant)
Date: October 22, 2026			By:			/s/ H. Edward Paul III
						H. Edward Paul III
						Vice President and Controller

Exhibit 99.1

News Release

Lockheed Martin Reports Third Quarter 2026 Financial Results

•Sales increased 11% to $20.7 billion

•Net earnings increased 14% to $1.8 billion, or $7.97 per share

•Cash from operations of $3.4 billion and free cash flow of $3.0 billion

•Record backlog of $292.0 billion, including $52.5 billion associated with the multi-year award to produce PAC-3 Missile Segment Enhancement (MSE) interceptors

•Updates 2026 financial outlook

BETHESDA, Md., Oct. 22, 2026 – Lockheed Martin Corporation [NYSE: LMT] today reported third quarter 2026 sales of $20.7 billion, compared to $18.6 billion in the third quarter of 2025. Net earnings in the third quarter of 2026 were $1.8 billion, or $7.97 per share, compared to $1.6 billion, or $6.95 per share. Cash from operations was $3.4 billion in the third quarter of 2026, compared to $3.7 billion in the third quarter of 2025. Free cash flow was $3.0 billion in the third quarter of 2026, compared to $3.3 billion in the third quarter of 2025. Backlog grew 27% since the second quarter of 2026, setting another new record at $292.0 billion.

“Our strong third quarter performance underscores Lockheed Martin’s continuing leadership in the development and delivery of advanced and reliable defense technology solutions. Every day, our research, engineering and production teams are putting highly effective and scalable capabilities in the field. We strive to improve mission performance on a continuous basis by combining proven systems like Aegis, F-35, and Hellfire with the latest digital technologies including AI and Autonomy. We are doing this by integrating our internal innovative solutions with those of start-ups, new entrants into our industry, and commercial technology leaders.” said Lockheed Martin Chairman, President and CEO Jim Taiclet.

“By pulling through our existing platforms and systems using innovations from multiple sources and with newly available digital technology, we can drive elevated growth in our financial performance as well. In the third quarter each of our four segments posted growth year-over-year, sales topped $20.7 billion and net earnings exceeded $1.8 billion, increases of 11% and 14% respectively. We delivered $3 billion of free cash flow in the quarter, and increased our backlog to a record $292 billion, allowing us to raise our dividend for the 24th year in a row. The sustained financial momentum across our portfolio gives us confidence to increase our outlook for sales, earnings per share and free cash flow, the second consecutive quarter we have raised our financial guidance.”

1

Summary Financial Results

			(in millions, except per share data)						Quarters Ended												Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			Sales						$	20,711					$	18,609					$	58,795					$	54,727
			Business segment operating profit1						$	2,229					$	2,029					$	6,214					$	4,685
			Unallocated items
			FAS/CAS pension operating adjustment						421						380						1,264						1,138
			Impairment and other charges						—						—						—						(66)
			Intangible asset amortization expense						(49)						(70)						(149)						(197)
			Other, net						(158)						(59)						(344)						(160)
			Total unallocated items						214						251						771						715
			Consolidated operating profit						$	2,443					$	2,280					$	6,985					$	5,400
			Net earnings						$	1,845					$	1,619					$	5,169					$	3,673
			Diluted earnings per share						$	7.97					$	6.95					$	22.36					$	15.69
			Cash from operations						$	3,438					$	3,728					$	6,893					$	5,338
			Capital expenditures						(439)						(381)						(1,268)						(1,186)
			Free cash flow1						$	2,999					$	3,347					$	5,625					$	4,152
1			Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news release for more information.

Sales: Third quarter 2026 sales increased $2.1 billion, or 11%, driven by growth in each of the company's four business segments.

Business Segment Operating Profit1: Third quarter 2026 business segment operating profit increased $200 million due to munition ramps at Missiles and Fire Control and higher volume at Aeronautics.

Net Earnings and Diluted EPS: Third quarter 2026 net earnings increased $226 million and diluted earnings per share increased $1.02 primarily due to higher consolidated operating profit of $163 million described above.

Cash Flows: Third quarter 2026 cash from operations decreased $290 million and free cash flows decreased $348 million primarily due to the higher customer receipts in the third quarter of 2025. The company's cash activities during the third quarter of 2026 included capital expenditures of $439 million and independent research and development of $599 million.

2

2026 Financial Outlook

The following guidance table contains forward-looking statements, which are based on the company's expectations at the time of this news release. Actual results may differ materially from those projected. It is the company's practice not to incorporate adjustments in its financial outlook for proposed acquisitions, divestitures, joint ventures, changes in tax laws, or special items until such items have been consummated or enacted. Refer to the “Forward-Looking Statements” section contained in this press release and Form 10-Q for factors that may impact the company’s ability to achieve guidance or meet expectations.

(in millions, except per share data)

Current Update

July 2026

Sales

~$80,000 - $82,000

$79,750 - $81,750

Business segment operating profit1

~$8,575 - $8,675

$8,500 - $8,700

Total FAS/CAS pension adjustment

~$1,365

~$1,365

Diluted earnings per share

~$30.35 - $30.75

$29.95 - $30.65

Cash from operations

~$10,000 - $10,200

$9,200 - $9,400

Capital expenditures

~$2,100 - $2,300

$2,000 - $2,400

Free cash flow1

~$7,800 - $8,000

$7,000 - $7,200

1

Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news release for more information.

F-35 Lots 20-22 Contract Update

The company remains in negotiations with the U.S. Government on the production contracts for F-35 lots 20 and higher. The company's costs incurred began to exceed the current contractual authorization and funding on the Lot 20 advance acquisition contract during the third quarter of 2026. Without additional contractual authorization and funding from the U.S. Government, the company's results of operations, cash flows, and financial condition will be negatively impacted in future periods.

3

Segment Results

			(in millions)						Quarters Ended												Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			Sales
			Aeronautics						$	8,214					$	7,256					$	23,279					$	21,733
			Missiles and Fire Control						4,501						3,624						12,251						10,430
			Rotary and Mission Systems						4,511						4,373						12,856						12,696
			Space						3,485						3,356						10,409						9,868
			Total sales						$	20,711					$	18,609					$	58,795					$	54,727
			Operating profit
			Aeronautics						$	743					$	682					$	2,122					$	1,304
			Missiles and Fire Control						631						510						1,725						1,454
			Rotary and Mission Systems						524						506						1,384						855
			Space						331						331						983						1,072
			Total business segment operating profit						2,229						2,029						6,214						4,685
			Unallocated items
			FAS/CAS operating adjustment						421						380						1,264						1,138
			Impairment and other charges						—						—						—						(66)
			Intangible asset amortization expense						(49)						(70)						(149)						(197)
			Other, net						(158)						(59)						(344)						(160)
			Total unallocated items						214						251						771						715
			Total consolidated operating profit						$	2,443					$	2,280					$	6,985					$	5,400

4

Aeronautics 

			(in millions)						Quarters Ended												Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			Sales						$	8,214					$	7,256					$	23,279					$	21,733
			Operating profit						743						682						2,122						1,304
			Operating margin						9.0		%				9.4		%				9.1		%				6.0		%

Third quarter 2026 sales increased $958 million, or 13%, compared to the third quarter of 2025. The increase was primarily due to higher sales of $710 million on the F‑35 program as a result of higher volume on production and sustainment contracts and $270 million on the C-130 program due to the liquidation of pre-contract costs incurred in anticipation of a contract award in the third quarter of 2026. These increases were partially offset by lower sales of $130 million on the F-16 program due to lower production volume and the sales impact of unfavorable profit adjustments recognized.

Third quarter 2026 operating profit increased $61 million, or 9%, compared to the third quarter of 2025. The increase was primarily attributable to the higher sales volume previously described, partially offset by higher unfavorable profit adjustments of $40 million on the F-16 program and $40 million on the C-130 program.

5

Missiles and Fire Control

			(in millions)						Quarters Ended												Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			Sales						$	4,501					$	3,624					$	12,251					$	10,430
			Operating profit						631						510						1,725						1,454
			Operating margin						14.0		%				14.1		%				14.1		%				13.9		%

Third quarter 2026 sales increased $877 million, or 24%, compared to the third quarter of 2025. The increase was primarily attributable to higher sales of $480 million on integrated air and missile defense programs due to production ramps (Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD)), and $330 million on tactical and strike missile programs due to production ramps (Guided Multiple Launch Rocket Systems (GMLRS) and Precision Strike Missile (PrSM)).

Third quarter 2026 operating profit increased $121 million, or 24%, compared to the third quarter of 2025. The increase was primarily attributable to higher sales volume previously described.

6

Rotary and Mission Systems

			(in millions)						Quarters Ended												Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			Sales						$	4,511					$	4,373					$	12,856					$	12,696
			Operating profit						524						506						1,384						855
			Operating margin						11.6		%				11.6		%				10.8		%				6.7		%

Third quarter 2026 sales increased $138 million, or 3%, compared to the third quarter of 2025. The increase was attributable to higher sales of $140 million on Sensors, Effectors & Mission Systems (SEMS) programs due to higher volume on radar programs.

Third quarter 2026 operating profit increased $18 million, or 4%, compared to the third quarter of 2025 primarily due to a $40 million favorable profit adjustment upon the resolution of a contracting matter, offset by unfavorable profit adjustments of $45 million on Heavy Lift and Seahawk programs in the third quarter of 2026.

7

Space

			(in millions)						Quarters Ended												Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			Sales						$	3,485					$	3,356					$	10,409					$	9,868
			Operating profit						331						331						983						1,072
			Operating margin						9.5		%				9.9		%				9.4		%				10.9		%

Third quarter 2026 sales increased $129 million, or 4%, compared to the third quarter of 2025. The increase was primarily attributable to higher sales of $185 million on strategic and missile defense programs due to higher volume on the Fleet Ballistic Missile (FBM) and Next Generation Interceptor (NGI) programs, partially offset by lower sales of $115 million for national security space programs due to the program lifecycle on the OPIR mission.

Third quarter 2026 operating profit was comparable to the third quarter of 2025.

8

Income Taxes

The company's effective income tax rates were 15.1% and 16.5% for the quarters ended September 27, 2026 and September 28, 2025. The decrease was primarily attributable to increased tax deductions for foreign derived deduction eligible income (FDDEI), partially offset by the absence of the favorable resolution of certain federal income tax audit items as compared to the prior year.

Use of Non-GAAP Financial Measures

This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company's definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.

Business segment operating profit

Business segment operating profit represents operating profit from the company's business segments before unallocated income and expense. This measure is used by the company's senior management in evaluating the performance of its business segments and is a performance goal in the company's annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.

(in millions)

Current Update

July 2026

Business segment operating profit (non-GAAP)

~$8,575 - $8,675

$8,500 - $8,700

FAS/CAS operating adjustment1

~1,685

~1,685

Intangible asset amortization expense

~(200)

~(200)

Other, net

~(540)

~(490)

Consolidated operating profit (GAAP)

~$9,520 - $9,620

$9,495 - $9,695

1

Reflects the amount by which total CAS pension cost of $1.7 billion exceeds FAS pension service cost and excludes non-service FAS pension expense. Refer to the supplemental table "Selected Financial Data" included in this news release for a detail of the FAS/CAS operating adjustment.

Free cash flow

Free cash flow is a non-GAAP financial measure that the company defines as cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity. While management believes that free cash flow as a non-GAAP financial measure may be useful in evaluating the company's financial performance, it should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies.

9

Webcast and Conference Call Information

Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Thursday, October 22, 2026, at 8:30 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor. The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor.

For additional information, visit the company’s website: www.lockheedmartin.com.

About Lockheed Martin

Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.

# # #

Media Contacts:

Corporate Communications

+1 301-214-3030, media.relations@lmco.com

Investor Relations Contacts:

Mark Kvasnak, Vice President, Investor Relations

Jessica Serafin, Director, Investor Relations

+1 301-897-6800, investor.relations@lmco.com

10

Forward-Looking Statements

This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:

•the company's reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company's ability to negotiate favorable contract terms;

•budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling and government shutdowns, and changing funding and acquisition priorities;

•    risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program;

•the timing of contract awards or contract definitization, the outcome of contract negotiations, decisions by government customers to impose contract terms following undefinitized contract actions, achievement of performance milestones, customer acceptance of product deliveries, and receipt of customer payments;

•the company's ability to recover costs under U.S. Government contracts, the mix of fixed-price and cost-reimbursable contracts and the risks inherent in preparing estimates for fixed-price contracts (particularly for complex and technologically advanced programs);

•    customer procurement and other policies, laws, regulations and executive actions that affect the company and its industry, programs, future opportunities, and financial performance, including those relating to mission priorities, competing domestic and international spending, contracting terms (such as fixed-price requirements), acquisition process reforms, treatment of contractor performance issues, and contractor access to competitive opportunities;

•    planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment, rare earth minerals and microelectronics;

•performance and/or financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance, for which the company has provided guarantees and expects to provide additional financial support), joint venture partners, subcontractors and customers;

•changes in economic, capital market and political conditions in the U.S. and globally;

•    the impact of inflation and other cost pressures;

•government actions that restrict or prevent the sale or delivery of the company's products (such as delays in approvals for exports requiring Congressional notification);

•    foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences, and other trade restrictions;

•    the company's success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales, including potential effects from fluctuations in currency exchange rates;

•    changes in non-U.S. national priorities and government budgets and planned orders;

•    the competitive environment for the company's products and services;

•    the company's ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;

•the company's ability to develop and integrate artificial intelligence and autonomy technologies into its products and operations, its use of third-party AI providers, unintended performance of AI-enabled systems, and evolving laws, regulations and contract requirements governing AI and autonomous weapon systems;

•the company's ability to benefit fully from or adequately protect its intellectual property rights;

11

•    the company's ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions;

•    cyber or other security threats or other disruptions faced by the company or its suppliers;

•    the company's ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions, including as a result of presidential executive orders;

•    the accuracy of the company's estimates and projections;

•    changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension annuity contracts and associated charges;

•    realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market;

•the company's ability to successfully integrate the Ultra Maritime business and realize synergies and other expected benefits of the transaction and the potential for disruption to its or Ultra Maritime's business, customer and supplier relationships;

•    the company's efforts to fund and increase production capabilities and the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives;

•    the risk of an impairment of the company's assets, including the potential impairment of goodwill and intangibles;

•    the availability and adequacy of the company's insurance and indemnities;

•    compliance with laws, regulations, policies, and customer requirements relating to environmental matters;

•    the impact of public health crises, natural disasters and other severe weather conditions on the company's business and financial results, including supply chain disruptions and delays, employee absences, and program delays;

•    changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; and

•    the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, administrative reviews, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems.

These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the company’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.

The company’s actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its issuance. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.

12

Lockheed Martin Corporation

Consolidated Statements of Earnings1

(unaudited; in millions, except per share data)

									Quarters Ended												Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			Sales						$	20,711					$	18,609					$	58,795					$	54,727
			Operating costs and expenses						(18,275)						(16,369)						(51,835)						(49,430)
			Gross profit						2,436						2,240						6,960						5,297
			Other income, net						7						40						25						103
			Operating profit						2,443						2,280						6,985						5,400
			Interest expense						(264)						(286)						(799)						(828)
			Non-service FAS pension expense						(81)						(99)						(241)						(296)
			Other non-operating income, net						74						43						179						115
			Earnings before income taxes						2,172						1,938						6,124						4,391
			Income tax expense						(327)						(319)						(955)						(718)
			Net earnings						$	1,845					$	1,619					$	5,169					$	3,673
			Effective tax rate						15.1		%				16.5		%				15.6		%				16.4		%
			Earnings per common share
			Basic						$	8.00					$	6.98					$	22.45					$	15.74
			Diluted						$	7.97					$	6.95					$	22.36					$	15.69
			Weighted average shares outstanding
			Basic						230.5						231.9						230.2						233.3
			Diluted						231.5						232.8						231.2						234.1
			Common shares reported in stockholders’   equity at end of period																		230						230
1			The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on September 27, for the third quarter of 2026 and September 28, for the third quarter of 2025. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company's fiscal year ends on Dec. 31.

13

Lockheed Martin Corporation

Business Segment Summary Operating Results

(unaudited; in millions)

									Quarters Ended																		Nine Months Ended
									Sept. 27, 2026						Sept. 28, 2025						% Change						Sept. 27, 2026						Sept. 28, 2025						% Change
			Sales
			Aeronautics						$	8,214					$	7,256					13%						$	23,279					$	21,733					7%
			Missiles and Fire Control						4,501						3,624						24%						12,251						10,430						17%
			Rotary and Mission Systems						4,511						4,373						3%						12,856						12,696						1%
			Space						3,485						3,356						4%						10,409						9,868						5%
			Total sales						$	20,711					$	18,609					11%						$	58,795					$	54,727					7%
			Operating profit
			Aeronautics						$	743					$	682					9%						$	2,122					$	1,304					63%
			Missiles and Fire Control						631						510						24%						1,725						1,454						19%
			Rotary and Mission Systems						524						506						4%						1,384						855						62%
			Space						331						331						—%						983						1,072						(8%)
			Total business segment operating profit						2,229						2,029						10%						6,214						4,685						33%
			Unallocated items
			FAS/CAS operating adjustment						421						380												1,264						1,138
			Impairment and other charges						—						—												—						(66)
			Intangible asset amortization expense						(49)						(70)												(149)						(197)
			Other, net						(158)						(59)												(344)						(160)
			Total unallocated items						214						251						(15%)						771						715						8%
			Total consolidated operating profit						$	2,443					$	2,280					7%						$	6,985					$	5,400					29%
			Operating margin
			Aeronautics						9.0		%				9.4		%										9.1		%				6.0		%
			Missiles and Fire Control						14.0		%				14.1		%										14.1		%				13.9		%
			Rotary and Mission Systems						11.6		%				11.6		%										10.8		%				6.7		%
			Space						9.5		%				9.9		%										9.4		%				10.9		%
			Total business segment operating margin						10.8		%				10.9		%										10.6		%				8.6		%
			Total consolidated operating margin						11.8		%				12.3		%										11.9		%				9.9		%

14

Lockheed Martin Corporation

Consolidated Balance Sheets

(in millions, except par value)

									Sept. 27, 2026						Dec. 31, 2025
									(unaudited)
			Assets
			Current assets
			Cash and cash equivalents						$	5,960					$	4,121
			Receivables, net						3,096						3,901
			Contract assets						16,899						13,001
			Inventories						3,987						3,524
			Other current assets						1,059						815
			Total current assets						31,001						25,362
			Property, plant and equipment, net						11,524						11,292
			Goodwill						11,299						11,314
			Intangible assets, net						1,737						1,887
			Deferred income taxes						1,819						2,975
			Other noncurrent assets						7,130						7,010
			Total assets						$	64,510					$	59,840
			Liabilities and equity
			Current liabilities
			Accounts payable						$	5,005					$	3,630
			Salaries, benefits and payroll taxes						3,349						3,184
			Contract liabilities						12,644						11,440
			Current maturities of long-term debt						—						1,168
			Other current liabilities						3,542						3,913
			Total current liabilities						24,540						23,335
			Long-term debt, net						20,498						20,532
			Accrued pension liabilities						3,938						3,915
			Other noncurrent liabilities						5,471						5,337
			Total liabilities						54,447						53,119
			Stockholders’ equity
			Common stock, $1 par value per share						230						229
			Additional paid-in capital						451						—
			Retained earnings						16,802						14,034
			Accumulated other comprehensive loss						(7,420)						(7,542)
			Total stockholders’ equity						10,063						6,721
			Total liabilities and equity						$	64,510					$	59,840

15

Lockheed Martin Corporation

Consolidated Statements of Cash Flows

(unaudited; in millions)

						Nine Months Ended
						Sept. 27, 2026						Sept. 28, 2025
Operating activities
Net earnings						$	5,169					$	3,673
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization						1,223						1,224
Stock-based compensation						269						215
Deferred income taxes						1,114						72
Impairment and other charges						—						66
Reach-forward losses on select programs						—						1,615
Qualified defined benefit pension plans						277						334
Changes in assets and liabilities
Receivables, net						805						(1,493)
Contract assets						(3,898)						(1,231)
Inventories						(463)						(511)
Accounts payable						1,488						1,644
Contract liabilities						1,204						38
Income taxes						(244)						(100)
Other, net						(51)						(208)
Net cash provided by operating activities						6,893						5,338
Investing activities
Capital expenditures						(1,268)						(1,186)
Other, net						(92)						(278)
Net cash used for investing activities						(1,360)						(1,464)
Financing activities
Issuance of long-term debt, net of related costs						—						1,985
Repayments of long-term debt						(1,168)						(142)
Repurchases of common stock						—						(2,250)
Dividends paid						(2,408)						(2,332)
Other, net						(118)						(148)
Net cash used for financing activities						(3,694)						(2,887)
Net change in cash and cash equivalents						1,839						987
Cash and cash equivalents at beginning of period						4,121						2,483
Cash and cash equivalents at end of period						$	5,960					$	3,470

16

Lockheed Martin Corporation

Selected Financial Data

(unaudited; in millions)

									2026 Outlook						2025 Actual
			Total FAS pension expense and CAS cost
			FAS pension expense						$	(370)					$	(924)
			Less: CAS pension cost						1,735						1,568
			Total FAS/CAS pension adjustment						$	1,365					$	644
			Less: pension settlement charge						—						479
			Total FAS/CAS pension adjustment - adjusted1						$	1,365					$	1,123
			Service and non-service cost reconciliation
			FAS pension service cost						$	(50)					$	(50)
			Less: CAS pension cost						1,735						1,568
			FAS/CAS pension operating adjustment						1,685						1,518
			Non-service FAS pension expense						(320)						(874)
			Total FAS/CAS pension adjustment						$	1,365					$	644
			Less: pension settlement charge						—						479
			Total FAS/CAS pension adjustment - adjusted1						$	1,365					$	1,123
1			The cost components in the table above relate only to the company's qualified defined benefit pension plans. The company recognized a noncash, non-operating pretax settlement charge of $479 million in the fourth quarter of 2025.

17

Lockheed Martin Corporation

Other Financial and Operating Information

(unaudited; in millions, except for aircraft deliveries and weeks)

			Backlog						Sept. 27, 2026						Dec. 31, 2025
			Aeronautics						$	57,331					$	59,435
			Missiles and Fire Control						142,517						46,650
			Rotary and Mission Systems						49,435						47,715
			Space						42,701						39,822
			Total backlog						$	291,984					$	193,622

									Quarters Ended												Nine Months Ended
			Aircraft Deliveries						Sept. 27, 2026						Sept. 28, 2025						Sept. 27, 2026						Sept. 28, 2025
			F-35						43						46						94						143
			F-16						4						5						6						12
			C-130J						2						—						10						2
			Government helicopter programs						16						22						51						55
			Commercial helicopter programs						—						1						—						2
			International military helicopter programs						7						6						7						6

			Number of Weeks in Reporting Period1						2026						2025
			First quarter						12						13
			Second quarter						13						13
			Third quarter						13						13
			Fourth quarter						14						13
1			Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods.

18

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 508.5 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 1.9 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 21.4 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.3 KB