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Lockheed Martin Corporation is a global aerospace and defense company that operates in four primary business segments, focusing on advanced military and defense technologies. The company designs and manufactures military aircraft, missile defense systems, helicopters, and space systems, with a significant portion of its sales coming from the U.S. Government, particularly the Department of Defense . Lockheed Martin's strategy centers on integrating advanced technologies into defense systems to enhance agility and adaptability .
- Aeronautics - Develops advanced military aircraft, including the F-35 Lightning II, which is the company's largest program .
- Missiles and Fire Control (MFC) - Provides air and missile defense systems, tactical missiles, and precision strike weapon systems .
- Rotary and Mission Systems (RMS) - Designs and supports military and commercial helicopters, missile defense systems, and cyber solutions .
- Space - Involved in satellites, space transportation systems, and strategic defense systems .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
James D. Taiclet ExecutiveBoard | Chairman, President, and CEO | None | James D. Taiclet has been CEO since June 2020, Chairman since March 2021, and a board member since January 2018. Previously, he was Chairman, President, and CEO of American Tower Corporation. | View Report → |
Frank A. St. John Executive | Chief Operating Officer (COO) | None | Frank A. St. John has been COO since June 2020. He previously served as EVP of Rotary and Mission Systems and EVP of Missiles and Fire Control at LMT. | |
H. Edward Paul III Executive | Vice President and Controller | None | H. Edward Paul III is VP and Controller at LMT. He signed an 8-K filing as VP and Controller on October 22, 2024, confirming his role. | |
Jesus Malave Executive | Chief Financial Officer (CFO) | None | Jesus Malave joined LMT as CFO in January 2022. Previously, he was CFO at L3Harris Technologies and held leadership roles at United Technologies Corporation. | |
Kevin J. O’Connor Executive | SVP, General Counsel, and Corporate Sec. | None | Kevin J. O’Connor joined LMT in January 2025. He previously served as Chief Legal Officer at Carrier Corporation and held senior legal roles in government and private sectors. | |
Maria A. Ricciardone Executive | Vice President, Treasurer and IR | None | Maria A. Ricciardone joined LMT in October 2022 and became VP, Treasurer, and IR in January 2024. She previously held leadership roles at Arrow Electronics and Hubbell Incorporated. | |
Robert M. Lightfoot Executive | President – Space | None | Robert M. Lightfoot joined LMT in 2019 and became President of Space in January 2022. He previously served as VP of Operations and Strategy for the Space segment. | |
Stephanie C. Hill Executive | President – Rotary and Mission Systems | None | Stephanie C. Hill has been President of RMS since June 2020. She previously served as SVP of Enterprise Business Transformation and Deputy EVP of RMS. | |
Timothy S. Cahill Executive | President – Missiles and Fire Control | None | Timothy S. Cahill has been with LMT for 29 years and became President of Missiles and Fire Control in November 2022. He previously held senior leadership roles in business development. | |
Bruce A. Carlson Board | Independent Director | Chairman of Utah State University’s Space Dynamics Laboratory Guidance Council | Bruce A. Carlson has been a director at LMT since 2015. He is a retired U.S. Air Force General and former Director of the National Reconnaissance Office. | |
David B. Burritt Board | Independent Director | President and CEO of U.S. Steel Corporation | David B. Burritt has been a director at LMT since 2008. He is also the President and CEO of U.S. Steel Corporation. | |
Debra L. Reed-Klages Board | Independent Director | Director at Chevron Corporation and Caterpillar Inc. | Debra L. Reed-Klages has been a director at LMT since 2019. She is a former CEO of Sempra Energy and serves on the boards of Chevron and Caterpillar. | |
Heather Wilson Board | Independent Director | President of the University of Texas at El Paso; Board Member at Google Public Sector | Heather Wilson joined LMT's board in May 2024. She is a former Secretary of the U.S. Air Force and current President of the University of Texas at El Paso. | |
John C. Aquilino Board | Independent Director | None | Admiral John C. Aquilino joined LMT's board in December 2024. He is a retired U.S. Navy Admiral and former Commander of the U.S. Indo-Pacific Command. | |
John M. Donovan Board | Independent Director | Lead Director at Palo Alto Networks | John M. Donovan has been a director at LMT since 2021. He is also Lead Director at Palo Alto Networks and a former CEO of AT&T Communications. | |
Joseph F. Dunford Jr. Board | Independent Director | Partner at Liberty Strategic Capital; Board Member at Satellogic Inc. | Joseph F. Dunford Jr. has been a director at LMT since 2020. He is a retired U.S. Marine Corps General and former Chairman of the Joint Chiefs of Staff. | |
Patricia E. Yarrington Board | Independent Director | None | Patricia E. Yarrington has been a director at LMT since 2021. She is the former CFO of Chevron Corporation and Chair of LMT's Audit Committee. | |
Thomas J. Falk Board | Independent Lead Director | None | Thomas J. Falk has been a director at LMT since 2010 and was elected Independent Lead Director in May 2024. He is the former CEO of Kimberly-Clark Corporation. | |
Vicki A. Hollub Board | Independent Director | President and CEO of Occidental Petroleum Corporation | Vicki A. Hollub has been a director at LMT since 2018. She is also the President and CEO of Occidental Petroleum Corporation. |
- Regarding the F-35 program, can you elaborate on the specific challenges you are facing with the finalization of the TR3 software and how this might impact aircraft delivery schedules and cash flow in the coming quarters?
- Given the incremental losses you've realized on certain classified programs due to aggressive bidding, what measures are you implementing to improve cost estimation and bidding practices to prevent future cost overruns?
- With the anticipated pension contribution headwinds, can you provide more details on your plans to mitigate these, including any considerations for inorganic measures like debt issuance, and how this might affect your financial flexibility?
- Considering the increased demand reflected in your record backlog, what steps are you taking to address potential supply chain constraints to ensure you can meet production targets and customer commitments?
- In the context of the evolving tactical fighter landscape and the development of Collaborative Combat Aircraft (CCA), how is Lockheed Martin positioning itself to remain competitive, especially considering that non-traditional companies have been awarded contracts in Increment 1, and how does this influence your strategy for programs like NGAD and the F-35?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
One of the primary competitors in the defense and aerospace industry, competing on program opportunities and subject to bid protests in U.S. Government procurement awards. | |
A primary competitor in the defense and aerospace industry. The company has a strategic teaming agreement with this competitor to produce solid rocket motors, enhancing security and resilience in a critical domestic supply chain. | |
A primary competitor in the defense and aerospace industry, competing on program opportunities and subject to bid protests in U.S. Government procurement awards. | |
A primary competitor in the defense and aerospace industry, competing on program opportunities and subject to bid protests in U.S. Government procurement awards. | |
A primary competitor in the defense and aerospace industry. The company collaborates with this competitor on the Javelin program, a joint venture producing anti-tank and multi-target precision weapon systems for the U.S. Army and Marine Corps. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Terran Orbital Corporation | 2024 | Lockheed Martin acquired Terran Orbital Corporation in 2024 for an enterprise value of approximately $450 million, paying $0.25 in cash per share, assuming and repaying $313 million of existing debt, and establishing a $30 million working capital facility. The acquisition strategically enhances Lockheed Martin's satellite manufacturing capabilities—leveraging its role as Terran Orbital's largest customer (81% of its backlog) to integrate modular spacecraft solutions within its Space business unit. |
Recent press releases and 8-K filings for LMT.
- Switzerland and the U.S. are in diplomatic talks after Washington challenged the fixed-price deal for 36 F-35A jets, originally set at CHF 6 billion, citing potential cost overruns of up to CHF 1.5 billion.
- The U.S. Defense Security Cooperation Agency attributes the price increase to higher U.S. inflation and rising raw material and energy costs, while Switzerland maintains the contract’s fixed-price validity to ensure airspace security.
- Because the sale is under the U.S. Foreign Military Sales program, legal remedies are barred, making a diplomatic solution the only path forward.
- Pentagon halves F-35 procurement request for fiscal year 2026 from 48 to 24 jets amid an 8% military budget cut.
- The 24-plane request carries a $3.5 billion price tag plus $531 million for advance procurement.
- Cuts affect all three F-35 variants (A, B, and C), raising concerns over the program’s future and Lockheed Martin’s order book.
- The F-35 program, led by Lockheed Martin, is estimated to cost over $2 trillion across its lifecycle and has faced cost and technical criticisms.
- Canada commits an additional C$9.3 billion to defense spending to reach NATO’s 2% of GDP target five years early.
- PM Carney seeks to reduce reliance on US suppliers and reconsider the purchase of U.S.-made F-35 jets in favor of European options.
- New funding will modernize outdated naval, air, and land capabilities and expand domestic defense production.
- The announcement strengthened the Canadian dollar amid expectations of improved trade prospects and tariff relief.
- Russia launched 499 projectiles, including 479 Shahed drones and various cruise and ballistic missiles, in its largest combined attack to date.
- Ukraine’s defenses intercepted the majority, shooting down 277 drones and all Kh-101 and Kinzhal missiles, while electronic warfare neutralized 183 additional drones.
- NATO called for a 400% increase in air and missile defense spending in response to the unprecedented scale of aerial threats.
- The assault caused extensive damage in Kyiv and Odesa, destroying residential and medical facilities, and resulted in at least one death.
- F-35 Program Focus: Discussion emphasized maintaining a 156 units per year production rate, supported by robust domestic sales and strong international export demand, with a Q1 backlog of 361 jets and an additional 150 expected soon.
- Technology Refresh & Cash Events: Progress on the TR-3 upgrade and Block 4 integration was noted, with key cash liquidation events anticipated later this year to improve production and sustainment capabilities.
- Global Production and Partnerships: The company is expanding its international presence through strategic industrial participation, including partnerships in Europe (e.g., with Rheinmetall) and in India for F-16 and C-130J component production.
- Margin Improvement Strategy: Long-term plans focus on employing multiyear contracts and cost-saving initiatives to gradually grow margins, particularly on the sustainment side.
- International growth remains a key focus with expanding backlog orders and strong demand in regions like the Middle East.
- F-35 production is robust, with consistent annual rates and a diversified mix of domestic and international orders supporting the long‐term outlook.
- A strategic partnership is underway, including an MOU with Rheinmetall, aimed at boosting international production and addressing supply chain resiliency.
- The company is advancing its digital transformation with the 1LMX platform to unify operations and enhance process efficiencies.
- Posted $18.0B in sales, GAAP EPS of $7.28 (up 14%), and $1.7B in net earnings for Q1 2025, highlighting robust overall financial performance .
- Provided strong full-year guidance with projected sales of $73,750‑$74,750M, EPS of $27.00‑$27.30, and a $173B backlog supporting long-term stability .
- Achieved operational efficiency by generating $1.4B in cash from operations and $955M in free cash flow despite investing $850M in R&D and capex .
- Business segments update: Aeronautics delivered a 3% sales increase with a 6% boost in operating profit, while the Space segment saw a 2% decline in sales but improved margins .
- Reinforced shareholder value by returning $1.5B through dividends and share repurchases .
- Evan Scott has been appointed as the new CFO effective immediately, replacing Jesus “Jay” Malave, who is leaving to pursue other opportunities.
- The announcement comes as part of Lockheed Martin’s series of leadership changes ahead of the Q1 2025 earnings webcast scheduled for April 22, 2025.
- Lockheed Martin delivered the 51st and 52nd F-35A jets to the Royal Norwegian Air Force, completing Norway’s program of record.
- The new F-35 fleet bolsters defense interoperability and supports NATO and allied missions across multiple domains.
- This milestone reflects the enduring and strategic partnership between Lockheed Martin and Norway in advancing defense capabilities.
- F-35 Program: Lockheed Martin detailed progress on the F-35 initiative with the delivery of Tech Refresh 3 and ongoing software improvements while developing Tech 4 for enhanced sensor capability, aiming for combat readiness this year and continued upgrades into 2026.
- International Demand: The company noted robust international demand that could compensate for potential U.S. buy reductions, with expectations that Lot-19 production may mirror Lot-18 orders.
- Missiles and Fire Control Growth: Production is increasing across key programs, including reaching a 550 PAC-3 rate this year and targeting 650 by 2027, alongside growing output for HIMARS, JASSM, and LRASM systems.
- Innovative Low-Cost Solutions: Leveraging its 1LMX digital initiatives, Lockheed Martin is advancing a modular, low-cost cruise missile system with a target cost of approximately $150,000, exemplifying its push for affordable, agile technologies.
- Space Segment & ULA Update: The call highlighted efforts toward Vulcan certification with over 75 launches in backlog and anticipated earnings growth from ULA starting in 2026, despite current cost headwinds in 2025.