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Industrial Defender

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Lockheed Martin Corporation
Company typePublic
Industry
Predecessors
FoundedMarch 15, 1995; 31 years ago (1995-03-15)
HeadquartersBethesda, Maryland, United States
Area served
Worldwide
Key people
James Taiclet (chair, president & CEO)
RevenueIncrease Template:US$ (2024)
Decrease US$7.013 billion (2024)
Decrease US$5.336 billion (2024)
Total assetsIncrease US$55.62 billion (2024)
Total equityDecrease US$6.333 billion (2024)
Number of employees
  • 116,000 (2022)
  • 121,000 (2024)
Divisions
WebsiteTemplate:Official url

The Lockheed Martin Corporation stands as a premier American aerospace and defense manufacturer, with its headquarters situated in North Bethesda, Maryland. Established in 1995 through the merger of Lockheed Corporation and Martin Marietta, the company is structured into four principal business segments:

In fiscal year 2024, approximately 73% of Lockheed Martin’s income originated from contracts with the U.S. federal government—of which 65% was derived from the Department of Defense—while sales of the F-35 fighter accounted for 26%. The firm also provides services to other federal entities such as the Department of Energy and NASA.

Additionally, Lockheed Martin delivers surveillance and data processing solutions to various U.S. intelligence and governmental organizations including the CIA, FBI, NSA, IRS, Pentagon, Census Bureau, and Postal Service.

The company has been awarded six Collier Trophies recognizing its aerospace advancements, notably in 2001 for the F-35B LiftFan propulsion technology and in 2018 for its Automatic Ground Collision Avoidance System (Auto-GCAS). It serves as a global leader in managing supply chains for the F-35 program and pioneers critical technologies like the USAF Space Fence replacement system and Orion command module development.

Beyond its core aerospace and defense operations, Lockheed Martin actively invests in sectors such as healthcare technology innovations, renewable energy solutions including intelligent power grids, as well as compact nuclear fusion research.

1990s

Discussions about merging Lockheed Corporation and Martin Marietta commenced in March 1994, culminating in the announcement of a $10 billion merger on August 30, 1994. The new entity established its headquarters at Martin Marietta’s site in North Bethesda, Maryland. After receiving shareholder consent, the merger was officially completed on March 15, 1995. Segments not retained by the merged company became L-3 Communications, while Martin Marietta Materials was later separated from Lockheed Martin.

Top executives were awarded significant bonuses funded by government resources; for example, Martin Marietta’s CEO Norman R. Augustine was granted $8.2 million. Both firms brought critical defense and aerospace assets: Lockheed’s offerings included the Trident missile, P-3 Orion maritime patrol aircraft, reconnaissance aircraft such as the U-2 and SR-71 Blackbird, fighter jets like the F-117 Nighthawk, F-16 Fighting Falcon, and F-22 Raptor, transport aircraft C-130 Hercules, along with DSCS-3 satellite systems. Martin Marietta contributed Titan rockets, oversight of Sandia National Laboratories, the Space Shuttle External Tank, Viking landers, subcontracting on the Transfer Orbit Stage, and a variety of satellite technologies.

On April 22, 1996, Lockheed Martin purchased the defense electronics and systems integration divisions of Loral Corporation for $9.1 billion; the remaining parts of Loral were reorganized as Loral Space & Communications. Plans for an $8.3 billion merger with Northrop Grumman were abandoned in July 1998 due to antitrust objections from government regulators, as the combined company would have controlled one-quarter of the Department of Defense’s procurement expenditures.

A significant setback occurred when metric conversion errors in software caused NASA’s Mars Climate Orbiter to be lost, resulting in a $125 million loss out of the spacecraft’s $193 million development budget.

Outside of defense, Lockheed Martin ventured into graphics technology for 1990s arcade gaming by designing the texture mapping chip used in the Sega Model 2 and creating the complete graphics system for the Sega Model 3, which powered numerous popular arcade titles during that period.

2000s

In May 2001, Lockheed Martin divested its Lockheed Martin Control Systems division to BAE Systems. Earlier, on November 27, 2000, it completed the $1.67 billion sale of its Aerospace Electronic Systems unit—which included Sanders Associates, Fairchild Systems, and Lockheed Martin Space Electronics & Communications—to BAE Systems. That same year, Lockheed Martin secured the contract to manufacture the F-35 Lightning II, marking the largest fighter jet acquisition since the F-16 program with an initial order for 3,000 aircraft. Additionally, in 2001, the company resolved a nine-year NASA inquiry by paying $7.1 million related to false claims concerning lease costs from a predecessor entity.

On July 8, 2003, a racially motivated shooting at Lockheed Martin’s Meridian plant in Mississippi resulted in six fatalities and eight injuries. Prior to this incident, the company had investigated complaints against the shooter and required anger management and diversity training; however, he declined to participate.

By 2004, CEO Robert Stevens confronted a looming workforce challenge as over 100,000 out of approximately 130,000 employees were expected to retire within ten years. On August 31, 2006, Lockheed Martin secured a $3.9 billion contract from NASA to design and construct the Crew Exploration Vehicle (CEV), later named Orion, intended for use with the Ares I rocket under the Constellation Program. In 2009, NASA reduced Orion’s crew capacity from six to four astronauts for missions to the International Space Station.

In August 2007, Lockheed Martin acquired Cary-based firm 3Dsolve—a developer specializing in military and corporate simulation and training solutions—renaming it Lockheed Martin 3D Learning Systems (later known as Lockheed Martin 3D Solutions), retaining founder Richard Boyd as director. On August 13, 2008, it purchased Nantero Inc.’s government business unit, gaining access to advanced carbon nanotube technologies aimed at next-generation electronics. In 2009, Lockheed Martin further expanded by acquiring Unitech.

2010s

On November 18, 2010, Lockheed Martin revealed intentions to shut down its Eagan, Minnesota site by 2013 as part of a strategy to cut expenses and enhance capacity across the United States. In January 2011, the corporation agreed to a $2 million settlement addressing accusations of submitting fraudulent claims related to a U.S. government contract with the Naval Oceanographic Office Major Shared Resource Center.

Lockheed Martin acquired its initial Quantum Computing System from D-Wave Systems on May 25, 2011, entering a multi-year agreement aimed at tackling intricate computational problems. Shortly after, the company experienced a cyberattack that exposed sensitive information, underscoring cybersecurity vulnerabilities in defense contracting.

In March 2012, allegations concerning inflated pricing on perishable tools sold to the U.S. government by its subsidiary Tools & Metals Inc., dating from 1998 to 2005, were resolved through a settlement. Later that year, in July, Lockheed Martin reduced its workforce by 740 employees to sustain competitiveness and decrease operating costs. On November 27, 2012, Marillyn Hewson was appointed CEO, effective January 1, 2013.

Early in 2013, Lockheed Martin Canada expanded by acquiring engine maintenance operations from Aveos Fleet Performance. The company also settled a $19.5 million securities fraud class-action lawsuit related to its IT division in February. Midyear partnerships included collaborations with DreamHammer for UAV command software and Bell Helicopter on the V-280 Valor tiltrotor project for the Future Vertical Lift initiative. In September, Lockheed expanded its global footprint and diversified beyond defense by purchasing Scotland's Amor Group. By November, it closed its Akron, Ohio plant, resulting in 500 layoffs.

In October 2013, Lockheed anticipated closing a $2.2 billion deal with the United States Air Force for two next-generation military communication satellites.

At the beginning of 2014, Lockheed acquired Beontra AG to strengthen commercial airport IT offerings along with Industrial Defender Inc. In June of that year, it secured a $915 million contract from the Pentagon to construct a space fence system designed to monitor orbital debris.

By December 2014, Lockheed Martin Integrated Systems resolved a False Claims Act lawsuit with a $27.5 million payment related to overcharging taxpayers for work performed by inadequately qualified personnel.

On July 20, 2015, Lockheed announced its intention to acquire Sikorsky Aircraft from United Technologies Corporation for $7.1 billion, with the transaction completing later that year at $9 billion following approval from Chinese regulators. The Pentagon expressed concerns that this acquisition might diminish market competition. Dan Schulz was named president of Sikorsky under Lockheed's leadership. Concurrently, conceptual designs surfaced for a twin-engine blended wing body strategic airlifter comparable in size to the C-5 Galaxy.

In March 2015, Lockheed secured a $362 million contract from the Navy for constructing Freedom-class littoral combat ship LCS 21 and procuring components for LCS 23. By December, it obtained an $867 million contract to provide training for Australia's upcoming military pilots, with options extending up to 26 years.

August 2016 saw Canadian Forces Maritime conduct testing of Lockheed’s integrated submarine combat system paired with MK 48 heavyweight torpedoes. That same month marked the completion of a merger between Leidos and Lockheed's Information Systems & Global Solutions segment.

During President Trump's visit to Saudi Arabia in May 2017, Lockheed Martin finalized arms agreements valued at tens of billions as part of broader U.S.-Saudi deals.

On August 13, 2018, Lockheed secured a $480 million contract from the U.S. Air Force to develop a prototype hypersonic weapon—marking the second hypersonic weapons contract awarded that year following an earlier $928 million agreement.

NASA awarded Lockheed Martin a $2.6 billion Commercial Lunar Payload Services contract on November 29, 2018, commissioning delivery of science and technology payloads to the Moon. The company intends to propose the McCandless Lunar Lander, inspired by successful Mars lander technology and named in honor of astronaut Bruce McCandless II.

On April 11, 2019, Lockheed launched the Arabsat-6A satellite from Kennedy Space Center; together with SaudiGeoSat-1/HellasSat-4, these represent some of the most sophisticated commercial communications satellites developed by the firm.

On September 23, 2019, Lockheed Martin secured a $4.6 billion NASA contract to manufacture six or more Orion capsules supporting lunar exploration under the Artemis program.

2020s

In January 2020, Lockheed Martin secured a $138 million contract from the Naval Sea Systems Command to serve as the Engineering Agent for the AEGIS Combat System. The company's Rotary and Mission Systems (RMS) division was responsible for the development, integration, testing, and delivery of the AEGIS Advanced Capability Build (ACB) 20 combat system at their New Jersey facility, with an anticipated completion date by December 2020.

During the same month, the Department of Defense reported more than 800 software issues in Lockheed Martin's F-35 fighter jets as part of its annual assessment, continuing longstanding concerns.

In February 2020, following Vector Launch Inc's bankruptcy, Lockheed Martin acquired GalacticSky, a satellite software technology, for $4.25 million.

On March 16, 2020, James D. Taiclet was appointed as Lockheed Martin's new chief executive officer, effective June 15; he also assumed the role of chairman in January 2021.

Lockheed Martin encountered sanctions imposed by the Chinese government in July and October of 2020 and again in February 2023 due to its arms sales to Taiwan.

In December 2020, Lockheed Martin announced intentions to purchase Aerojet Rocketdyne Holdings for $4.4 billion; however, regulatory authorities blocked the acquisition, leading to its cancellation in February 2022.

Amid the 2022 Russian invasion of Ukraine, Lockheed Martin and other leading defense contractors experienced substantial growth in interim sales and profits.

May 2023 saw Lockheed Martin launch ForwardEdge ASIC, a microelectronics subsidiary dedicated to designing customized application-specific integrated circuits tailored for clients.

In November 2023, protest actions directly targeted Lockheed Martin’s facilities in both the United States and United Kingdom in opposition to arms sales to Israel during the Gaza conflict.

In March 2024, Lockheed Martin placed a bid nearing $600 million to acquire spacecraft manufacturer Terran Orbital.

On June 28, 2024, the U.S. Army awarded Lockheed Martin a contract valued at $4.5 billion to supply 870 Patriot Advanced Capability-3 (PAC-3) missiles along with associated equipment; each missile is priced at approximately $4 million.

On October 9, 2024, Chauncey McIntosh was appointed vice president and general manager of the F-35 Lightning II Program, succeeding Bridget Lauderdale upon her retirement after a distinguished 38-year career.

In December 2024, Lockheed Martin established Astris AI, a new subsidiary focused on assisting U.S. defense firms with integrating artificial intelligence technologies into their operations.

Finances

Sales by business (2023)
Business share
Aeronautics 40.7%
Rotary and Mission Systems 24.0%
Space 18.7%
Missiles and Fire Control 16.7%

For fiscal year 2020, Lockheed Martin posted net earnings of $6.833 billion on revenues totaling $65.398 billion, reflecting a 9.3% rise compared to the previous year. The backlog at the close of 2019 reached $144.0 billion, up from $130.5 billion in 2018; firm orders accounted for $94.5 billion. Shares were trading above $389 per share by year-end 2019, with market capitalization around $109.83 billion. The company ranked number 60 on Fortune's 2019 list based on revenue.

Sales by region (2023)
Region share
United States 73.9%
Europe 10.4%
Asia Pacific 8.7%
Middle East 5.3%
Other 1.8%
 2024  71 ,043  5 ,336  55 ,617  485 .94  121 ,000
Year Revenue
in mil. US$ 		Net income
in mil. US$ 		Total Assets
in mil. US$ 		Price per Share
in US$ 		Employees
2005 37,213 1,825 27,744 41.78
2006 39,620 2,529 28,231 54.52
2007 41,862 3,033 28,926 70.93
2008 41,372 3,217 33,439 71.54
2009 43,867 2,973 35,111 55.94
2010 45,671 2,878 35,113 57.35
2011 46,499 2,655 37,908 60.85
2012 47,182 2,745 38,657 73.10
2013 45,358 2,981 36,188 97.53 115,000
2014 39,946 3,614 37,046 151.21 112,000
2015 40,536 3,605 49,304 187.00 126,000
2016 47,248 5,302 47,806 226.05 97,000
2017 51,048 2,002 46,521 280.65 100,000
2018 53,762 5,046 44,876 261.84 105,000
2019 59,812 6,230 47,528 389.38 110,000
2020 65,398 6,833 50,710 354.98 114,000
2021 67,044 6,315 50,873 355.41 114,000
2022 65,984 5,732 52,880 486.49 116,000
2023 67,571 6,920 52,456 453.24 122 ,000


Global operations

Enterprise functions

Fully owned subsidiaries

  • ForwardEdge ASIC
  • Lockheed Martin Finance Corporation
  • LMC Properties

Joint ventures

Divested entities

Board of directors

The board is composed of 14 members. As of 2020, notable directors include:

Chief executive officer

Chairman of the board

Ownership structure

By December 2023, the majority of Lockheed Martin’s stock was owned by institutional investors including entities such as State Street Corporation, Vanguard Group, BlackRock, and Capital Group Companies.

Top shareholders as of December 2023
Shareholder Country Shares Held Ownership Percentage Market Value in thousands USD
State Street Corporation Template:USA 37,049,916 15.33% $16,113,379
The Vanguard Group Template:USA 22,099,137 9.15% $9,611,136
BlackRock Inc. Template:USA 18,158,813 7.51% $7,897,449
Charles Schwab Corporation Template:USA 5,637,923 2.33% $2,451,989
Morgan Stanley Template:USA 5,206,242 2.15% $2,264,247
Capital World Investors Template:USA 5,031,450 2.08% $2,188,228
Geode Capital Management, LLC Template:USA 4,559,183 1.89% $1,982,834
FMR, LLC Template:USA 4,351,452 1.80% $1,892,490
Bank of America Template:USA 3,209,854 1.33% $1,395,998
Wellington Management Company Template:USA 2,807,469 1.16% $1,220,996

Lockheed Martin stands as the largest contractor for the U.S. government and holds the top position for incidents recorded on the 'contractor misconduct' database maintained by the Project on Government Oversight, ranking fifth in terms of settlement amounts. Since 1995, the company has disbursed $676.8 million to resolve 88 misconduct cases.

In 2015, Lockheed Martin settled for $4.7 million over allegations involving improper use of taxpayer funds for unlawful lobbying aimed at suppressing competitors. This activity was conducted through its subsidiary, Sandia Corporation, which included employing former Representative Heather Wilson as an unregistered lobbyist to safeguard lucrative contracts related to nuclear weapons laboratories. Observers have expressed concerns about Lockheed and other defense contractors utilizing opaque expenditures and dark money to influence U.S. defense policy decisions—raising issues about transparency and national security.

In 2013, Lieutenant General Christopher Bogdan publicly criticized Lockheed Martin's management of the F-35 fighter jet program. He urged the company to assume a fair share of program risks, focus on reducing expenses, and enhance collaborative relations—remarks that followed earlier critiques from former Defense Secretary Robert Gates regarding cost management and oversight within the program.

Lobbying

Lockheed Martin operates an influential political network that effectively garners bipartisan backing within the U.S. Congress by strategically allocating defense contracts to pivotal states and districts. In 2022, the firm invested $13.6 million in lobbying efforts, a figure closely aligned with its $13.7 million expenditure in 2009.

The company’s political action committee (PAC) channels focused financial contributions to candidates prioritizing national defense and associated industry interests. Historically, Lockheed Martin has been a major benefactor to key defense committee members, such as the late Senator Daniel Inouye and former House Armed Services Committee chair Buck McKeon. Supported by roughly 3,000 employees, the Lockheed Martin Employees Political Action Committee donates about $500,000 annually to approximately 260 congressional candidates.

Management

Lockheed Martin’s executive leadership consists of the CEO, CFO, and Executive Vice Presidents (EVPs) who oversee four main business sectors. Each EVP is responsible for managing significant programs within their respective divisions.

In March 2020, James Taiclet assumed the role of CEO, succeeding Marillyn Hewson who transitioned to executive chair. Taiclet brought with him leadership experience from American Tower, Honeywell Aerospace, and United Technologies. At the same time, Frank A. St John was elevated to the newly established position of chief operating officer.

The organizational structure divides employees into four levels: Tier 1 includes Program Managers and Vice Presidents; Tier 2 consists of Functional Teams such as Finance and Engineering; Tier 3 is composed of Integrated Product Teams (IPTs) tasked with system development and integration; Tier 4 focuses on detailed product design and development. Assembly line personnel are grouped into component teams managed by supervisors in conjunction with unions.

Lockheed Martin implements Full Spectrum Leadership alongside the LM21 program to boost management effectiveness. The LM21 initiative incorporates Six Sigma techniques and Lean methodologies like Kaizen to streamline operations. Leadership councils support managers in driving continuous improvement initiatives involving both internal stakeholders and external suppliers.

Functional Leads at Tier 2 and IPT Leads at Tier 3 report directly to Tier 1 leadership, with IPT leads accountable for systems or products as defined by contracts. Quality assurance is upheld through specialized IPT teams trained in conjunction with a Technical Performance Measure (TPM) system that aligns with Lean and Six Sigma frameworks. Middle management promotes strong employee engagement through effective communication and involvement strategies.

On the manufacturing floor, Lockheed Martin employs a Flow-to-takt lean production method for aircraft assembly that merges division of labor principles with scientific management techniques to enhance efficiency via task specialization.

Double Helix methodology

The Double Helix methodology represents a systems development strategy utilized by Lockheed Martin that combines experimentation, technological innovation, and a warfighter’s concept of operations to create advanced tactics and weaponry.

See also

Further reading

External links

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