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Lockheed Martin

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Lockheed Martin Corporation
Company typePublic
IndustryAerospace, defense, arms, security, advanced technologies
PredecessorLockheed Corporation, Martin Marietta
FoundedMarch 15, 1995; 31 years ago (1995-03-15) in North Bethesda, Maryland, U.S.
Headquarters
North Bethesda
,
United States
Area served
Worldwide
Key people
James Taiclet (CEO)
ProductsAircraft (F-35 Lightning II, C-130 Hercules, F-16 Fighting Falcon, F-22 Raptor), missiles (MIM-104 Patriot, THAAD), rotary-wing aircraft (UH-60 Black Hawk), space systems (Orion crew vehicle, GPS Block III satellites), missile defense systems
Revenue$71.04 billion (2024)
Number of employees
121000 (2024)
Websitewww.lockheedmartin.com

The Lockheed Martin Corporation stands as a prominent American company specializing in the defense and aerospace manufacturing sectors, with its headquarters located in North Bethesda, Maryland, USA. Established in 1995 through the merger of Lockheed Corporation and Martin Marietta, the firm operates worldwide via four principal divisions:

In 2024, Lockheed Martin reported revenues totaling $71.04 billion, with approximately 73% stemming from contracts with the U.S. federal government—65% of which originated from the Department of Defense—and 26% generated by sales of the F-35 fighter jet. The company also provides advanced surveillance and information processing services to agencies such as NASA, the Department of Energy, CIA, NSA, FBI, IRS, among others.

Under the guidance of CEO James Taiclet, Lockheed Martin emphasizes maintaining its edge through continuous innovation within aerospace and defense technology fields. The corporation has been honored with six Collier Trophies recognizing aerospace milestones, including achievements like the F-35B LiftFan Propulsion System and Automatic Ground Collision Avoidance System.

Beyond its core defense operations, Lockheed Martin invests in healthcare technology advancements, renewable energy solutions such as solar power tailored for military use, smart energy distribution networks, and compact nuclear fusion research—broadening its portfolio to support sustainable growth.

The company employs roughly 121,000 individuals worldwide as of 2024 and sustains an extensive global presence through its subsidiaries and divisions. Its strategic focus revolves around fostering government collaborations, driving technological progress, and expanding its footprint within aerospace and defense markets.

Financial performance details are derived from the latest company SEC disclosures.

1990s

Discussions to merge Lockheed Corporation with Martin Marietta commenced in March 1994, culminating in an announced $10 billion merger plan on August 30 of that year. The new entity established its headquarters on Martin Marietta’s premises in North Bethesda, Maryland. Final shareholder approval led to completion of the merger on March 15, 1995. Divisions not retained formed what became L-3 Communications, while Lockheed Martin later spun off Martin Marietta Materials.

Following the merger, executives received substantial bonuses funded by government contracts; notably, Martin Marietta's CEO Norman R. Augustine was awarded an $8.2 million bonus.

Each company brought significant products to Lockheed Martin’s portfolio. Lockheed contributed assets such as the Trident missile, maritime patrol aircraft like the P-3 Orion, reconnaissance planes including the U-2 and SR-71 Blackbird, stealth aircraft like the F-117 Nighthawk, fighters such as the F-16 Fighting Falcon and F-22 Raptor, transport planes like the C-130 Hercules, plus DSCS-3 satellites. Martin Marietta added Titan rockets from its launch vehicle family, management responsibilities for Sandia National Laboratories, components like the Space Shuttle external tank, Viking landers for Mars missions, subcontracted Transfer Orbit Stages to Orbital Sciences, along with various satellite programs.

On April 22, 1996, Lockheed Martin acquired Loral Corporation’s defense electronics and systems integration units for $9.1 billion; Loral retained its space communications business. Plans for a merger valued at $8.3 billion with Northrop Grumman were abandoned in July 1998 due to antitrust concerns raised by regulators over market concentration.

A significant failure occurred in 1999 when NASA’s Mars Climate Orbiter was lost after Lockheed Martin supplied software that used incorrect measurement units for force calculations—resulting in a $125 million loss on a spacecraft development effort costing $193 million.

Outside defense-related activities during the 1990s, Lockheed Martin developed graphics technologies for gaming applications. This included creating the texture mapping chip used in the Sega Model 2 arcade system and designing graphics hardware for the Sega Model 3, which powered popular arcade titles of that period.

2000s

In May 2001, Lockheed Martin divested its Lockheed Martin Control Systems division to BAE Systems. Earlier, on November 27, 2000, the company finalized the sale of its Aerospace Electronic Systems unit—including Sanders Associates, Fairchild Systems, and Space Electronics & Communications—to BAE Systems for $1.67 billion. That same year, Lockheed Martin secured the contract to manufacture the F-35 Lightning II, marking the largest fighter aircraft procurement since the F-16 program, with an initial order totaling 3,000 jets. Additionally, in 2001, the firm resolved a nine-year NASA investigation by agreeing to pay $7.1 million related to allegations of false lease cost claims made by a predecessor company.

On July 8, 2003, a devastating racially motivated shooting took place at Lockheed Martin's Meridian, Mississippi facility, resulting in six fatalities and eight injuries. Following previous complaints about the assailant’s conduct and his refusal to complete mandatory anger management and diversity training, Lockheed Martin initiated an internal inquiry.

By 2004, under CEO Robert Stevens’ leadership, Lockheed Martin confronted a significant demographic challenge: projections indicated that more than 75% of its roughly 130,000 employees would retire within ten years. On August 31, 2006, the company secured a $3.9 billion NASA contract to design and construct the Crew Exploration Vehicle (CEV) capsule—later named Orion—intended for the Constellation Program’s Ares I rocket. In 2009, NASA adjusted the capsule’s crew capacity from six to four astronauts for missions servicing the International Space Station.

In August 2007, Lockheed Martin expanded by acquiring Cary-based 3Dsolve, a firm specializing in military and corporate simulation and training solutions. The acquired entity was rebranded as Lockheed Martin 3D Learning Systems (later Lockheed Martin 3D Solutions), with founder Richard Boyd retained as director. On August 13, 2008, Lockheed Martin enhanced its foothold in next-generation electronics by purchasing Nantero Inc.’s government business unit, which focused on carbon nanotube technologies. The company further extended its portfolio in 2009 through the acquisition of Unitech.

These targeted acquisitions and contract awards strengthened Lockheed Martin’s leadership position within aerospace and defense markets while simultaneously addressing workforce evolution and shifting industry requirements.

2010s

On November 18, 2010, Lockheed Martin announced plans to shutter its Eagan, Minnesota facility by 2013 as part of efforts to streamline operations and reduce expenses across its national footprint. In January 2011, the company agreed to a $2 million settlement over allegations concerning false claims submitted under a Naval Oceanographic Office contract.

On May 25, 2011, Lockheed Martin procured its first Quantum Computing System from D-Wave Systems via a multi-year agreement aimed at tackling complex computational problems. Shortly thereafter, a cyberattack compromised sensitive information, highlighting the increasing importance of cybersecurity within defense sectors.

In March 2012, Lockheed Martin resolved accusations relating to inflated pricing for perishable tools supplied by subsidiary Tools & Metals Inc during the period from 1998 to 2005. Subsequently in July of that year, it reduced its workforce by 740 positions to maintain competitive standing. On November 27, 2012, Marillyn Hewson was appointed CEO in a pivotal leadership change.

Early in 2013, Lockheed Martin Canada acquired engine maintenance assets from Aveos Fleet Performance located in Montreal. That February also saw the settlement of a $19.5 million securities fraud class-action lawsuit tied to its IT division. Later in the year, Lockheed partnered with DreamHammer to develop UAV command software and collaborated with Bell Helicopter on the V-280 Valor tiltrotor for the Future Vertical Lift initiative. In September 2013, expanding internationally beyond defense markets, Lockheed acquired Scotland-based Amor Group. The company also closed its Akron, Ohio manufacturing site in November that year, resulting in a reduction of approximately 500 employees.

In October 2013, Lockheed anticipated securing a $2.2 billion contract from the U.S. Air Force for advanced military communications satellites. By March 2014, it had acquired Beontra AG to bolster commercial airport IT offerings and Industrial Defender Inc., enhancing cybersecurity capabilities. June of that year brought a Pentagon contract valued at $915 million to develop a space fence system for tracking orbital debris.

In December 2014, Lockheed Martin Integrated Systems settled a False Claims Act lawsuit with payments totaling $27.5 million related to billing irregularities involving unqualified personnel.

A major acquisition occurred in July 2015 when Lockheed announced plans to acquire Sikorsky Aircraft from United Technologies Corporation for $7.1 billion—a deal later finalized at $9 billion after regulatory approval—thereby broadening its helicopter product line despite Pentagon concerns over competition reduction. Dan Schulz was named president of Sikorsky following the acquisition.

Lockheed also pursued innovative aircraft concepts such as a blended wing body strategic airlifter design. In early 2015, it secured contracts exceeding $400 million for Freedom-class littoral combat ships and obtained an $867 million pilot training agreement with Australia potentially extending up to twenty-six years.

In August 2016, Canadian Forces Maritime conducted trials on a submarine combat system developed by Lockheed Martin. That same month marked completion of the spin-off of its Information Systems & Global Solutions division into Leidos.

During President Trump's May 2017 visit to Saudi Arabia, Lockheed Martin secured multi-billion-dollar agreements as part of broader U.S.-Saudi strategic partnerships.

In August 2018, Lockheed won a $480 million U.S. Air Force contract for hypersonic weapon prototype development following an earlier award worth $928 million that year—underscoring its leading role in advanced weapons systems.

On November 29, 2018, NASA awarded Lockheed Martin a $2.6 billion Commercial Lunar Payload Services contract to develop lunar landers based on established Mars lander designs; the McCandless Lunar Lander was named in honor of astronaut and former employee Bruce McCandless II.

In April 2019, Lockheed successfully launched Arabsat-6A from Kennedy Space Center—one of its most sophisticated commercial communications satellites alongside SaudiGeoSat-1/HellasSat-4.

On September 23, 2019, NASA contracted Lockheed Martin for $4.6 billion to produce six or more Orion crew capsules supporting the Artemis Moon program reaffirming its pivotal role in space exploration efforts.

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 RMS division was tasked with developing and delivering the AEGIS Advanced Capability Build (ACB) 20 integrated combat system at its New Jersey facility, with an anticipated completion date in December 2020.

During the same month, the Department of Defense uncovered more than 800 software flaws in Lockheed Martin's F-35 fighter jets during its annual assessment, continuing a trend of previously identified issues.

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

On March 16, 2020, James D. Taiclet was appointed as the new CEO of Lockheed Martin, taking over from Marillyn Hewson; he later assumed the role of chairman in January 2021, marking a pivotal leadership change within the company.

Lockheed Martin encountered sanctions imposed by the Chinese government in July 2020, October 2020, and February 2023, related to its arms sales activities involving Taiwan.

On December 20, 2020, Lockheed Martin announced intentions to purchase Aerojet Rocketdyne Holdings for $4.4 billion; however, this acquisition was ultimately abandoned in February 2022 due to regulatory obstacles.

In response to the 2022 Russian invasion of Ukraine, Lockheed Martin and several other leading defense manufacturers reported notable growth in interim sales and profits, reflecting increased global defense demand.

In May 2023, Lockheed Martin launched ForwardEdge ASIC, a new microelectronics subsidiary dedicated to designing bespoke application-specific integrated circuits (ASICs), broadening its technological capabilities and product offerings.

November 2023 saw protests directly targeting Lockheed Martin facilities in both the United States and the United Kingdom, connected to arms supplied amid the Gaza conflict.

In March 2024, Lockheed Martin submitted a proposal to acquire spacecraft manufacturer Terran Orbital for close to $600 million, demonstrating continued investment in the space sector.

On June 28, 2024, Lockheed Martin received a $4.5 billion contract from the U.S. Army to supply Patriot Advanced Capability-3 (PAC-3) missiles. This contract includes production of approximately 870 PAC-3 MSE interceptors at an estimated cost of $4 million each.

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

In December 2024, Lockheed Martin established Astris AI, a subsidiary focused on embedding artificial intelligence technologies into U.S. defense operations, reinforcing its dedication to innovation within its corporate strategy.

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 reported net earnings of $6.833 billion on revenues totaling $65.398 billion, representing a 9.3% rise compared to the previous year. The backlog at the end of 2019 stood at $144.0 billion, up from $130.5 billion in 2018; firm orders accounted for $94.5 billion. At year-end 2019, shares traded above $389 per share with a market capitalization near $109.83 billion. The company ranked number 60 on the Fortune 500 list based on revenue for that year.

Sales by region (2023)
Region Share
United States 73.9%
Europe 10.4%
Asia Pacific 8.7%
Middle East 5.3%
Other 1.8%
Year Revenue
(million US$) 		Net Income
(million US$) 		Total Assets
(million US$) 		Share Price
(US$) 		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
2024 71,043 5,336 55,617 485.94 121,000


Global Operations

Enterprise Functions

Fully Owned Corporate Subsidiaries

  • ForwardEdge ASIC
  • Lockheed Martin Finance Corporation
  • LMC Properties

Collaborative Ventures

Former Divisions

Board of Directors

The board consists of 14 members. As of 2020, prominent executives include:

Chief Executive Officers

Board Chairpersons

Shareholding Structure

As of December 2023, the majority of Lockheed Martin’s stock is owned by institutional investors such as State Street Corporation, Vanguard Group, and BlackRock. These leading shareholders underscore the company’s significant market standing and attractiveness to large investment funds.

Top Shareholders as of December 2023
Shareholder Country Shares Owned Percentage Ownership 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 holds the position as the largest contractor for the U.S. government and ranks first in incident count and fifth in total settlement amounts according to the contractor misconduct records maintained by the Project on Government Oversight. Since 1995, the company has disbursed $676.8 million to resolve 88 misconduct cases.

In 2013, Lt. Gen. Christopher Bogdan publicly criticized the F-35 fighter program managed by Lockheed Martin. He called on the firm to assume a greater share of program risks and focus on cost reduction measures to enhance partnership relations. This followed earlier remarks from former Defense Secretary Robert Gates.

Lobbying

Politico emphasizes Lockheed Martin's extensive political influence and its ability to secure bipartisan backing in Congress by strategically allocating defense contracts across pivotal states and districts. The company maintained a lobbying budget of $13.6 million in 2022, consistent with previous years.

Lockheed Martin’s political action committee (PAC) channels focused financial contributions to candidates who support national defense priorities and related industry interests. During the 2011 election cycle, it was the leading donor to Republican Buck McKeon, chairman of the House Armed Services Committee, and one of the primary contributors to the late Sen. Daniel Inouye, who chaired the Senate Appropriations Committee.

The Lockheed Martin Employees Political Action Committee, funded by nearly 3,000 employee contributors, provides roughly $500,000 annually to approximately 260 congressional candidates, positioning it among the top 50 PACs nationwide.

Management

The senior leadership team comprises the CEO, CFO, and Executive Vice Presidents (EVPs) responsible for four distinct business sectors. These EVPs oversee key program operations.

On March 16, 2020, Lockheed announced that CEO Marillyn Hewson would transition to executive chair, with James Taiclet assuming the CEO position on June 15. Taiclet brought a wealth of industry experience from his previous roles as head of American Tower and leadership positions at Honeywell Aerospace and United Technologies. Concurrently, Lockheed established the role of chief operating officer, appointing EVP Frank A. St John to this position.

The company’s organizational structure is divided into four levels: Tier 1 includes Program Managers and Vice Presidents; Tier 2 consists of Functional Teams such as Finance, Engineering, Quality, and Operations; Tier 3 encompasses Integrated Product Teams (IPTs) tasked with weapon system development and integration; and Tier 4 focuses on detailed product development activities. Assembly line workers operate within component-focused teams under management supervision supported by union representation.

Lockheed Martin employs Full Spectrum Leadership alongside its LM21 program to enhance workforce management. LM21 incorporates Six Sigma methodologies aimed at boosting operational efficiency. Leadership councils formed by senior executives oversee these initiatives while managers lead Kaizen events designed to improve processes. These managers coordinate team efforts and stakeholder engagement to optimize workflows.

Functional Leads at Tier 2 and IPT Leads at Tier 3 report directly to Tier 1 managers. IPT leads bear responsibility for entire systems or products according to contract Statements of Work. Quality assurance is maintained through specialized IPT training and a Technical Performance Measure (TPM) system aligned with Lean manufacturing and Six Sigma standards. Middle management enforces commitment strategies consistent with high-commitment workplace frameworks.

Assembly operations utilize a Flow-to-takt lean manufacturing approach that integrates division of labor principles with scientific management techniques. This specialization of tasks enhances productivity by assigning workers to focused component assembly roles.

Double Helix methodology

Lockheed Martin’s "Double Helix methodology" is a systems development framework that combines experimentation, advanced technology, and the warfighter’s concept of operations to innovate new tactics and weapon systems.

See also

Further reading

  • William D. Hartung. Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex. Nation Books, 2010. .
  • "A Security Analyst Prevails in Court". Time magazine
  • "Lockheed Secures NASA’s New Spaceship Contract". Washington Post
  • "Defense Giant Penalized for National Security Oversight". ABC News
  • "NASA: Human Error Led to Mars Surveyor Failure". CBS News
  • "Lockheed Penalized for Breach of Confidentiality". BBC News
  • "Officials Criticize Coast Guard’s Contract Oversight". Washington Post
  • Commemorative Ceremony Scheduled for Final F-22 Raptor

External links

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