Lockheed Martin Corporation (LMT)

In February 2025, Lockheed Martin agreed to pay $29.74 million to resolve False Claims Act allegations of defective pricing on contracts for F-35 military aircraft. In March 2025, Lockheed Martin was awarded a $4.937 billion contract for the production and sustainment of the Precision Strike Missile (PrSM) and submitted a bid to acquire Terran Orbital. In April 2025, Baird upgraded Lockheed Martin Corp (LMT) to Outperform from Neutral, citing strong global demand for missiles, reduced risk, and upbeat management commentary. In June 2025, a former Lockheed Martin employee claimed that the company awarded bonuses based on employees' race rather than job performance in late 2022, which Lockheed Martin denies.

Demand for Lockheed Martin's products is primarily driven by government defense spending, particularly from the U.S. Department of Defense. Demand is generally strong and sustained, both domestically and internationally, as reflected in the company's robust backlog. Long sales cycles, government budget cycles, program-specific trends, and supply chain impacts can influence demand. The company's backlog was $172.97 billion as of March 30, 2025, representing over two years of sales. Lockheed Martin is increasing production capabilities for missile systems in response to global demand. Some sources indicate that the products produced by defense contractors can be seasonal, which might reduce productivity during low seasons.

Lockheed Martin Corporation is a major American defense and aerospace manufacturer, formed in 1995 through the merger of Lockheed Corporation and Martin Marietta. It operates across four primary business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. The majority of Lockheed Martin's business is with the U.S. Department of Defense and other U.S. federal government agencies, with approximately 73% of its 2024 revenue coming from the U.S. federal government, including 65% from the U.S. Department of Defense. The company also serves the U.S. Department of Energy and NASA.

Lockheed Martin has a strong global presence with operations in over 70 countries and more than 350 facilities worldwide. It has a strong focus on the United States and Canada, with major facilities in states like Texas, California, Florida, Maryland, and Virginia. It also has a significant presence in Colorado. In Europe, it has a presence in the United Kingdom, Germany, and Romania. In Asia-Pacific, it has a growing presence in Japan, South Korea, Australia, and Singapore. It also recognizes growing opportunities in the Middle East. The company's international operations include Lockheed Martin UK and Lockheed Martin Canada.

Lockheed Martin is generally known for high-quality products and services, delivering reliable and effective solutions. It has been a Fortune 500 company for 26 years and ranked highly in the aerospace and defense industry. However, the company has faced challenges, including allegations of defective pricing on F-35 contracts, discrimination allegations regarding bonus allocations, and historical scrutiny related to overbilling and misconduct. The company has settled multiple instances of misconduct since 1995.

Lockheed Martin's shares are mainly held by institutional investors, who hold a combined 74% of the stock. State Street Corporation is the largest shareholder, followed by The Vanguard Group Inc. and BlackRock, Inc. Individual insider shareholders hold a smaller percentage, around 0.06% of the company's stock. The biggest individual shareholder is James D. Taiclet, the company's chair, president, and CEO.