Revenue accelerated 10.5% YoY to $20.1B in Q2 2026, with gross margin at 12.2% and EPS of $7.94 beating estimates by $0.48, though margins remain thin and volatile due to program charges.
Lockheed Martin Corporation (LMT) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 77.02B | 75.06B | 71.04B | 67.57B | 65.98B | 67.04B | 65.4B | 59.81B | 53.76B | 49.96B | 47.29B | 40.54B | 39.95B | 45.36B | 47.18B | 46.5B | 45.8B | 45.19B | 42.73B | 41.86B | 39.62B | 37.21B | 35.53B | 31.82B | 26.58B | 23.99B | 25.33B | 25.53B | 26.27B | 28.07B | 26.88B |
| Revenue Growth % | 7.21% | 5.65% | 5.14% | 2.41% | -1.58% | 2.52% | 9.34% | 11.25% | 7.61% | 5.65% | 16.66% | 1.48% | -11.93% | -3.87% | 1.47% | 1.52% | 1.36% | 5.75% | 2.08% | 5.66% | 6.47% | 4.75% | 11.63% | 19.74% | 10.79% | -5.29% | -0.79% | -2.8% | -6.42% | 4.44% | 17.6% |
| Cost of Goods Sold | 67.93B | 67.43B | 64.11B | 59.09B | 57.7B | 57.98B | 56.74B | 51.45B | 46.39B | 43.59B | 41.89B | 36.04B | 35.26B | 40.77B | 42.94B | 42.8B | 41.97B | 40.97B | 38.08B | 37.63B | 36.19B | 34.68B | 33.56B | 29.85B | 24.63B | 22.45B | 22.75B | 23.86B | 23.91B | 25.77B | 24.59B |
| COGS % of Revenue | - | 89.84% | 90.25% | 87.45% | 87.44% | 86.48% | 86.77% | 86.01% | 86.29% | 87.25% | 88.58% | 88.92% | 88.28% | 89.9% | 91% | 92.03% | 91.63% | 90.65% | 89.12% | 89.89% | 91.33% | 93.18% | 94.46% | 93.79% | 92.67% | 93.57% | 89.81% | 93.48% | 91.05% | 91.82% | 91.51% |
| Gross Profit | 9.09B | 7.62B | 6.93B | 8.48B | 8.29B | 9.06B | 8.65B | 8.37B | 7.37B | 6.37B | 5.4B | 4.49B | 4.68B | 4.58B | 4.24B | 3.7B | 3.84B | 4.22B | 4.65B | 4.23B | 3.43B | 2.54B | 1.97B | 1.98B | 1.95B | 1.54B | 2.58B | 1.67B | 2.35B | 2.3B | 2.28B |
| Gross Margin % | 11.8% | 10.15% | 9.75% | 12.55% | 12.56% | 13.51% | 13.23% | 13.99% | 13.71% | 12.75% | 11.42% | 11.08% | 11.72% | 10.1% | 9% | 7.97% | 8.38% | 9.35% | 10.88% | 10.11% | 8.67% | 6.82% | 5.54% | 6.21% | 7.33% | 6.43% | 10.19% | 6.52% | 8.95% | 8.18% | 8.49% |
| Gross Profit Growth % | - | 9.94% | -18.27% | 2.32% | -8.54% | 4.7% | 3.43% | 13.53% | 15.68% | 17.96% | 20.24% | -4.08% | 2.18% | 7.99% | 14.58% | -3.44% | -9.19% | -9.14% | 9.8% | 23.3% | 35.36% | 28.91% | -0.4% | 1.39% | 26.31% | -40.24% | 55.08% | -29.21% | 2.39% | 0.7% | 15.67% |
| Operating Expenses | -67M | -112M | -83M | -28M | -61M | -62M | 10M | -178M | 36M | -373M | -487M | -220M | -329M | 98M | 616M | 585M | -261M | 724M | 698M | 1.21B | 1.14B | 1.04B | 0 | 0 | 0 | 0 | 968M | 0 | 0 | 0 | 0 |
| OpEx % of Revenue | - | -0.15% | -0.12% | -0.04% | -0.09% | -0.09% | 0.02% | -0.3% | 0.07% | -0.75% | -1.03% | -0.54% | -0.82% | 0.22% | 1.31% | 1.26% | -0.57% | 1.6% | 1.63% | 2.88% | 2.87% | 2.8% | - | - | - | - | 3.82% | - | - | - | - |
| Selling, General & Admin | 0 | 50M | 137M | 499M | 865M | 1.24B | 241M | 608M | 777M | 746M | 471M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 0.07% | 0.19% | 0.74% | 1.31% | 1.85% | 0.37% | 1.02% | 1.45% | 1.49% | 1% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Research & Development | 665M | 2B | 1.6B | 1.5B | 1.7B | 1.5B | 1.3B | 1.3B | 1.3B | 1.2B | 988M | 817M | 751M | 697M | 616M | 585M | 638M | 724M | 698M | 1.21B | 1.14B | 1.04B | 962M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 2.66% | 2.25% | 2.22% | 2.58% | 2.24% | 1.99% | 2.17% | 2.42% | 2.4% | 2.09% | 2.02% | 1.88% | 1.54% | 1.31% | 1.26% | 1.39% | 1.6% | 1.63% | 2.88% | 2.87% | 2.8% | 2.71% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -2M | -2.16B | -1.82B | -2.03B | -2.63B | -2.8B | -1.53B | -2.09B | -2.04B | -2.32B | -1.95B | -1.04B | -1.08B | -599M | 0 | 0 | -899M | 0 | 0 | 0 | 0 | 0 | -962M | 0 | 0 | 0 | 968M | 0 | 0 | 0 | 0 |
| Operating Income | 9.15B | 7.73B | 7.01B | 8.51B | 8.35B | 9.12B | 8.64B | 8.54B | 7.33B | 6.74B | 5.89B | 4.71B | 5.59B | 4.5B | 4.43B | 3.98B | 4.1B | 4.47B | 5.13B | 4.53B | 3.95B | 2.99B | 2.09B | 1.98B | 1.95B | 1.54B | 1.61B | 1.67B | 2.35B | 2.3B | 2.28B |
| Operating Margin % | 11.88% | 10.3% | 9.87% | 12.59% | 12.65% | 13.61% | 13.22% | 14.29% | 13.64% | 13.5% | 12.45% | 11.62% | 14% | 9.93% | 9.4% | 8.56% | 8.94% | 9.88% | 12.01% | 10.81% | 9.98% | 8.02% | 5.88% | 6.21% | 7.33% | 6.43% | 6.37% | 6.52% | 8.95% | 8.18% | 8.49% |
| Operating Income Growth % | - | 10.24% | -17.56% | 1.9% | -8.49% | 5.54% | 1.16% | 16.51% | 8.75% | 14.54% | 24.96% | -15.74% | 24.13% | 1.6% | 11.41% | -2.86% | -8.26% | -12.96% | 13.34% | 14.52% | 32.38% | 42.94% | 5.72% | 1.39% | 26.31% | -4.4% | -3.06% | -29.21% | 2.39% | 0.7% | 77.93% |
| EBITDA | 10.44B | 8.45B | 8.57B | 9.94B | 9.75B | 10.49B | 9.93B | 9.73B | 8.49B | 7.94B | 7.1B | 5.74B | 6.59B | 5.5B | 5.42B | 4.99B | 5.15B | 5.33B | 5.98B | 5.35B | 4.72B | 3.69B | 2.75B | 2.58B | 2.51B | 2.37B | 2.58B | 2.63B | 3.36B | 3.35B | 3.48B |
| EBITDA Margin % | 13.56% | 11.25% | 12.07% | 14.71% | 14.78% | 15.64% | 15.19% | 16.27% | 15.8% | 15.89% | 15.02% | 14.16% | 16.49% | 12.11% | 11.49% | 10.73% | 11.24% | 11.78% | 13.99% | 12.77% | 11.91% | 9.92% | 7.73% | 8.12% | 9.43% | 9.86% | 10.19% | 10.32% | 12.78% | 11.93% | 12.94% |
| EBITDA Growth % | 37.38% | -1.49% | -13.73% | 1.9% | -7.01% | 5.57% | 2.05% | 14.59% | 7% | 11.77% | 23.79% | -12.88% | 19.85% | 1.35% | 8.7% | -3.13% | -3.31% | -10.89% | 11.78% | 13.33% | 27.8% | 34.46% | 6.19% | 3.11% | 5.96% | -8.37% | -1.97% | -21.54% | 0.24% | -3.71% | 57.88% |
| D&A (Non-Cash Add-back) | 1.29B | 714M | 1.56B | 1.43B | 1.4B | 1.36B | 1.29B | 1.19B | 1.16B | 1.2B | 1.22B | 1.03B | 994M | 990M | 988M | 1.01B | 1.05B | 859M | 845M | 819M | 764M | 705M | 656M | 609M | 558M | 823M | 968M | 969M | 1B | 1.05B | 1.2B |
| EBIT | 8.57B | 7.04B | 7.26B | 9.01B | 7.3B | 8.12B | 8.83B | 7.89B | 6.51B | 5.9B | 5.42B | 4.74B | 5.02B | 4.5B | 4.46B | 3.98B | 4.12B | 4.49B | 4.96B | 4.72B | 3.95B | 2.99B | 2.09B | 2.02B | 1.16B | 833M | 1.25B | 1.67B | 2.52B | 2.78B | 2.73B |
| Net Interest Income | -1.11B | -1.12B | -1.04B | -916M | -623M | -569M | -591M | -653M | -668M | -651M | -663M | -443M | -340M | -350M | -383M | -354M | -345M | -308M | -332M | -352M | -361M | -370M | -425M | -487M | -581M | -700M | -919M | -809M | -861M | -842M | -700M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.11B | 1.12B | 1.04B | 916M | 623M | 569M | 591M | 653M | 668M | 651M | 663M | 443M | 340M | 350M | 383M | 354M | 345M | 305M | 341M | 352M | 361M | 370M | 425M | 487M | 581M | 700M | 919M | 809M | 861M | 842M | 700M |
| Other Income/Expense | -1.73B | -1.81B | -793M | -409M | -1.67B | -1.57B | -409M | -1.3B | -1.5B | -1.5B | -1.13B | -413M | -334M | -350M | -362M | -349M | -271M | -83M | -423M | -159M | 158M | -370M | -425M | -444M | -1.37B | -1.41B | -1.33B | -465M | -691M | -360M | -248M |
| Pretax Income | 7.42B | 5.92B | 6.22B | 8.1B | 6.68B | 7.55B | 8.23B | 7.24B | 5.84B | 5.27B | 4.89B | 5.02B | 5.26B | 4.16B | 4.07B | 3.63B | 3.83B | 4.28B | 4.7B | 4.37B | 3.59B | 2.62B | 1.66B | 1.53B | 577M | 188M | 286M | 1.2B | 1.66B | 1.94B | 2.03B |
| Pretax Margin % | 9.63% | 7.89% | 8.76% | 11.98% | 10.12% | 11.26% | 12.59% | 12.11% | 10.86% | 10.55% | 10.33% | 12.39% | 13.16% | 9.16% | 8.63% | 7.81% | 8.35% | 9.48% | 11% | 10.43% | 9.07% | 7.03% | 4.68% | 4.81% | 2.17% | 0.78% | 1.13% | 4.7% | 6.32% | 6.9% | 7.56% |
| Income Tax | 1.13B | 905M | 884M | 1.18B | 948M | 1.24B | 1.35B | 1.01B | 792M | 3.34B | 1.13B | 1.42B | 1.64B | 1.21B | 1.33B | 964M | 1.18B | 1.26B | 1.49B | 1.33B | 1.06B | 791M | 398M | 479M | 44M | 109M | 710M | 463M | 660M | 637M | 686M |
| Effective Tax Rate % | 15.28% | 15.28% | 14.21% | 14.55% | 14.19% | 16.36% | 16.36% | 13.96% | 13.57% | 63.39% | 23.19% | 28.23% | 31.27% | 29% | 32.59% | 26.55% | 30.87% | 29.41% | 31.58% | 30.56% | 29.59% | 30.24% | 23.92% | 31.27% | 7.63% | 57.98% | 248.25% | 38.58% | 39.74% | 32.89% | 33.74% |
| Net Income | 6.29B | 5.02B | 5.34B | 6.92B | 5.73B | 6.32B | 6.83B | 6.23B | 5.05B | 2B | 5.3B | 3.6B | 3.61B | 2.98B | 2.75B | 2.65B | 2.93B | 3.02B | 3.22B | 3.03B | 2.53B | 1.82B | 1.27B | 1.05B | 500M | -1.05B | -519M | 382M | 1B | 1.3B | 1.35B |
| Net Margin % | 8.16% | 6.68% | 7.51% | 10.24% | 8.69% | 9.42% | 10.45% | 10.42% | 9.39% | 4.01% | 11.21% | 8.89% | 9.05% | 6.57% | 5.82% | 5.71% | 6.39% | 6.69% | 7.53% | 7.25% | 6.38% | 4.9% | 3.56% | 3.31% | 1.88% | -4.36% | -2.05% | 1.5% | 3.81% | 4.63% | 5.01% |
| Net Income Growth % | 49.55% | -5.98% | -22.89% | 20.73% | -9.23% | -7.58% | 9.68% | 23.46% | 152.05% | -62.24% | 47.07% | -0.25% | 21.23% | 8.6% | 3.39% | -9.26% | -3.24% | -6% | 6.07% | 19.93% | 38.58% | 44.15% | 20.23% | 110.6% | 147.8% | -101.54% | -235.86% | -61.84% | -23% | -3.49% | 97.51% |
| Net Income (Continuing) | 6.29B | 5.02B | 5.34B | 6.92B | 5.73B | 6.32B | 6.89B | 6.23B | 5.05B | 1.89B | 3.75B | 3.13B | 3.61B | 2.95B | 2.75B | 2.67B | 2.65B | 3B | 3.17B | 3.03B | 2.53B | 1.82B | 1.27B | 1.05B | 533M | 43M | -382M | 737M | 1B | 1.3B | 1.35B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -55M | 0 | 0 | 73M | 0 | 479M | 0 | 31M | 0 | 0 | 0 | 25M | 50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 23M | 44M | 55M | 74M | 95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 27.20 | 21.49 | 22.31 | 27.55 | 21.66 | 22.77 | 24.30 | 21.95 | 17.59 | 6.89 | 17.49 | 11.46 | 11.21 | 9.13 | 8.36 | 7.81 | 7.94 | 7.78 | 7.86 | 7.10 | 5.80 | 4.09 | 2.83 | 2.34 | 1.11 | -2.42 | -1.29 | 0.99 | 2.63 | 3.51 | 3.04 |
| EPS Growth % | 52.76% | -3.68% | -19.02% | 27.19% | -4.87% | -6.3% | 10.71% | 24.79% | 155.3% | -60.61% | 52.62% | 2.23% | 22.78% | 9.21% | 7.04% | -1.64% | 2.06% | -1.02% | 10.7% | 22.41% | 41.81% | 44.52% | 20.94% | 110.81% | 145.87% | -87.6% | -230.3% | -62.36% | -25.07% | 15.46% | 97.4% |
| EPS (Basic) | - | 21.56 | 22.39 | 27.65 | 21.74 | 22.85 | 24.40 | 22.09 | 17.74 | 6.96 | 17.71 | 11.62 | 11.41 | 9.29 | 8.48 | 7.90 | 8.03 | 7.86 | 8.05 | 7.29 | 5.91 | 4.14 | 2.86 | 2.36 | 1.12 | -2.45 | -1.29 | 1.00 | 2.66 | 3.51 | 3.56 |
| Diluted Shares Outstanding | 231.1M | 231.9M | 239.2M | 251.2M | 264.6M | 277.4M | 281.2M | 283.8M | 286.8M | 290.6M | 303.1M | 314.7M | 322.4M | 326.5M | 328.4M | 339.9M | 368.3M | 388.9M | 409.4M | 427.1M | 436.4M | 445.7M | 447.1M | 450M | 452M | 432.5M | 402.33M | 385.86M | 381.1M | 370.6M | 442.6M |
| Basic Shares Outstanding | 230.2M | 230.9M | 238.3M | 250.3M | 263.7M | 276.4M | 280M | 282M | 284.5M | 287.8M | 299.3M | 310.3M | 316.8M | 320.9M | 323.7M | 335.9M | 364.2M | 384.8M | 399.7M | 416M | 428.1M | 440.3M | 443.1M | 446.5M | 445.1M | 427.4M | 400.8M | 382M | 376.5M | 370.6M | 378.9M |
| Dividend Payout Ratio | - | 62.41% | 57.33% | 44.16% | 52.62% | 46.56% | 40.45% | 41.03% | 46.51% | 108.04% | 38.63% | 53.59% | 48.7% | 51.66% | 49.25% | 41.24% | 33.12% | 30.03% | 22.91% | 20.28% | 21.27% | 25.32% | 31.99% | 24.79% | 39.8% | - | - | 90.31% | 30.97% | 23% | 22.42% |
Quick answers to the most common questions about buying LMT stock.
For fiscal year 2025, Lockheed Martin Corporation (LMT) reported total revenue of $75.06B. This represents a 179.3% increase compared to $26.88B in 1996.
Lockheed Martin Corporation (LMT) is profitable, generating $5.02B in net income for the fiscal year ending 2025 with a net profit margin of 6.7%.
Lockheed Martin Corporation (LMT) reported an operating income of $7.73B, resulting in an operating profit margin of 10.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Lockheed Martin Corporation (LMT) generated $7.62B in gross profit for the year, representing a gross profit margin of 10.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Government concentration and leverage
Metrics are mathematically derived from official filings.
Backlog-Driven Revenue Acceleration
LMT's Q2 2026 revenue grew 10.5% YoY to $20.1B, with a record $230B backlog and $65B in new orders, indicating sustained multi-year visibility. According to recent SEC filings, this acceleration appears driven by strong demand across all segments.
The 10.5% YoY growth in Q2 2026 marks a clear acceleration from the 0.3% growth in Q1 2026 and the 1.3% in Q4 2024, suggesting a reacceleration in program deliveries. The record backlog of $230B, with a book-to-bill ratio well above 1.0, implies that revenue growth is likely to persist, supported by government appropriations and international orders. However, the heavy reliance on U.S. government contracts (~72% of revenue) means that any budget prioritization shifts could quickly alter this trajectory.
Thin Margins Masked by Program Mix
Gross margin averaged 12.2% in Q2 2026, but Q2 2025 and Q4 2024 saw margins collapse to 4.0% and 3.7% respectively, reflecting program charges. As reported in financial statements, these fluctuations suggest margin volatility tied to contract estimates.
The gross margin of 12.2% in Q2 2026 is below peers like RTX (20.1%) and NOC (19.8%), indicating a higher proportion of pass-through costs or lower-margin development contracts. The severe margin dips in Q2 2025 and Q4 2024, likely due to unfavorable EAC adjustments, highlight the risk of cost overruns on firm-fixed-price contracts. Investors should monitor the mix of sustainment versus new builds, as sustainment typically carries higher margins and could provide upside if it grows.
Operating Leverage Tempered by Fixed Costs
Operating income grew 11.1% YoY in Q2 2026, slightly outpacing revenue growth of 10.5%, suggesting modest operating leverage. Based on reported figures, SG&A and R&D are tightly controlled, but the high fixed-cost base limits scalability.
The operating margin of 12.4% in Q2 2026 is relatively stable, but the narrow gap between gross and operating margins (0.2 percentage points) indicates that SG&A and R&D are minimal, likely because they are embedded in contract costs. This structure means that any revenue decline could disproportionately impact operating income, as fixed costs cannot be easily adjusted. The company's ability to maintain operating leverage will depend on its success in scaling high-margin sustainment and software services.
Earnings Volatility from Program Adjustments
Net income swung from $342M in Q2 2025 to $1.8B in Q2 2026, with EPS of $7.94 beating estimates by $0.48. According to quarterly reports, this volatility appears driven by cumulative catch-up adjustments, not core operations.
The EPS growth of 4.4% YoY in Q2 2026 masks the extreme quarter-to-quarter swings, such as the -78.7% EPS decline in Q2 2025 and -70.7% in Q4 2024. These fluctuations are likely due to changes in estimates at completion on major programs, which can obscure underlying performance. Stock-based compensation of $97M in Q2 2026 is modest relative to net income, but the reliance on POC accounting warrants careful scrutiny of backlog quality and EAC revisions.
Cost Pressures in COGS and Program Charges
COGS as a percentage of revenue rose to 87.8% in Q2 2026, up from 85.5% in Q1 2026, reflecting higher input costs. As disclosed in financial statements, the company faces inflationary pressures on materials and labor, which may erode margins on fixed-price contracts.
The gross margin of 12.2% in Q2 2026 is below the 12.9% in Q1 2026, indicating that cost growth is outpacing revenue. The spikes in COGS in Q2 2025 and Q4 2024, which drove gross margins to 4.0% and 3.7%, suggest that program charges are a recurring risk. Management's ability to pass through costs on cost-plus contracts provides some protection, but the increasing mix of firm-fixed-price contracts exposes the company to commodity price volatility.
Leverage and Concentration Risks
Despite strong backlog, LMT's debt-to-equity of 3.23% and reliance on U.S. government contracts (~72% of revenue) pose structural risks. According to recent filings, any budget cuts or contract terminations could pressure the thin 10.2% gross margin.
The high leverage, while not extreme, could amplify the impact of rising interest rates on net income, especially if cash flows are used for buybacks rather than debt reduction. The concentration in U.S. government contracts means that political decisions, such as changes in defense spending priorities, could have outsized effects on revenue and margins. Short-sellers might argue that the record backlog is not a guarantee of profitability, as cost overruns on fixed-price contracts could erode the apparent revenue visibility.