Lockheed Martin (LMT) 10-K risk factor changes: FY2025 vs FY2024

The outcome of one or more of these risks could have a material effect on our [removed: operating results, financial position,] [added: results of operations] or [removed: cash flows.][added: financial position.]

We derived [removed: 73%] [added: 72%] of our total consolidated [removed: net] sales from the U.S. Government in [removed: 2024,] [added: 2025,] including [removed: 65%] [added: 63%] from the Department of [added: War (DoW), also known as the Department of] Defense [removed: (DoD).][added: under 10 U.S.C. § 111(a).]

Budget uncertainty, [removed: the potential for] [added: extended or repeated] U.S. Government shutdowns, the use of continuing resolutions, and the federal debt ceiling can adversely affect our industry and [added: both] the [added: quantum and timing of] funding for our programs.

[removed: If] [added: When] appropriations are delayed or a government shutdown [removed: were to occur] [added: occurs] and [removed: continue] [added: continues] for an extended period, we [removed: could] [added: may] be at risk of reduced orders, program [removed: cancellations] [added: cancellations, nonpayment or payment delays] and other [removed: disruptions and nonpayment.][added: disruptions.]

[removed: DoD’s] [added: DoW’s] changes in funding priorities also could reduce opportunities in existing programs and in future programs or initiatives where we intend to compete and where we have made investments.

While we [removed: would] [added: generally] expect to compete and be well positioned as the incumbent on existing programs, we may not be successful and, even if we are successful, the replacement programs may be funded at lower levels or result in lower margins.

The F-35 program, which consists of multiple development, production and sustainment contracts, is our largest program and represented [removed: 26%] [added: 27%] of our total consolidated [removed: net] sales in [removed: 2024.][added: 2025.]

A decision by the U.S. Government, international partners, or FMS customer countries to cut spending on this program or reduce or delay planned orders [removed: would] [added: may] have an adverse impact on our business and results of operations.

Given the size and complexity of the F-35 program, we anticipate that there will be continual reviews related to aircraft performance, program and delivery schedule, cost, and requirements as part of the [removed: DoD,] [added: DoW,] Congressional, and international countries’ oversight and budgeting processes.

We are subject to extensive procurement [removed: laws] and [added: other laws,] regulations, [added: and contract terms,] including those that enable the U.S. Government to terminate contracts for convenience.

Our business and reputation could be adversely affected if we or those we do business with fail to comply with these [removed: laws and regulations.][added: laws, regulations, or terms.]

In addition, costs to comply with new government regulations [added: and changing policies and practices] can increase our costs, reduce our margins and adversely affect our competitiveness.

*Undefinitized Contract Action (UCA).* [removed: When operating] [added: From time to time, we perform work] under a [removed: undefinitized contract action (UCA),] [added: UCA with the U.S. Government,] which is when we begin performing our obligations before the terms, specifications or price are finally agreed to between the [removed: parties, the U.S. Government has the right to unilaterally definitize contracts, which it has exercised in the past and which, absent a successful appeal, obligates us to perform under terms and conditions imposed by the U.S. Government.][added: parties.]

[removed: If a contract is] [added: The U.S. Government has the right to] unilaterally [removed: imposed upon us,] [added: definitize contracts, which] it [added: has exercised in the past and which, absent a successful appeal, obligates us to perform under terms and conditions imposed on us by the U.S. Government and] may negatively affect our expected profit and cash flows on a program or impose burdensome terms.

*Bid Protests.* [removed: U.S] [added: U.S.] Government procurement laws permit legal challenges, referred to as bid protests, to the terms of a contract solicitation or the award of a contract.

Competition and changing [added: customer] procurement policies could adversely affect our business and financial results.

The U.S. Government also may not award us large competitive contracts that we otherwise might have won in an effort to strengthen a broad industrial [removed: base.][added: base or address other procurement policy preferences.]

The [removed: DoD] [added: DoW] is increasingly pursuing rapid acquisition pathways and procedures for new technologies, including through so called “other transaction authority” agreements (OTAs).

Our profitability and cash flow may vary based on the mix of our contracts and programs, our performance, and our ability to [added: estimate and] control costs.

A reach-forward loss is when estimates of total costs to be incurred on a [added: contract exceed total estimates of the transaction price.]

Certain contracts may impose other risks, such as [added: temporary payment withholds,] forfeiting fees, paying penalties, or providing replacement systems in the event of performance failure.

See [removed: Note] [added: “Note] 1 – Organization and Significant Accounting [removed: Policies] [added: Policies”] included in our Notes to Consolidated Financial Statements for further details about losses incurred on certain programs, including fixed-price development programs.

U.S. Government audits and investigations often take years to [removed: complete, and many result in no adverse action against us.]

We are the prime contractor on most of our contracts and rely on other companies to provide materials, major components and products, and to perform a portion of the services that are provided to our [removed: customers under the terms of most of our contracts.][added: customers.]

These arrangements may involve subcontracts, teaming arrangements, joint ventures, or supply agreements with other companies [removed: on which we rely] (contracting parties) and, in many cases, [removed: our] contracting parties in turn rely on lower-tier subcontractors.

We sometimes have disputes with our contracting parties, including [removed: disputes] regarding the cost, quality and timeliness of work performed, workshares, customer concerns about the [removed: other] [added: contracting] party’s performance, issues related to lower-tier subcontractor performance, our failure to issue or extend task orders, or our hiring the personnel of a subcontractor, teammate or joint venture partner or vice versa.

The financial stability and viability of our contracting parties or lower-tier subcontractors have and in the future could adversely affect their ability to meet their performance [removed: obligation.][added: obligations and result in an impact on our business and results of operations.]

A failure by one or more of our contracting parties to provide [removed: the] agreed-upon materials, components or products, or perform [removed: the] agreed-upon services, on a timely basis, according to specifications, including compliance with regulatory requirements we flow down from our prime contracts, or at all, has and may adversely affect our ability to perform our obligations and require that we transition [removed: the] [added: impacted] work to other companies.

[removed: The future occurrence of non-compliant components in our programs could cause] suspensions in product deliveries, remediation work on installed components, contract price adjustments and alternate supply sourcing, all of which could adversely affect our financial condition and results of operations.

These commercial entities may not be accustomed to government contracting and may be unwilling to agree to the government’s customary terms, including with respect to intellectual property, liability and indemnification [removed: term,] [added: terms,] which may [added: prevent or lessen the benefit of collaboration.]

If we fail in our development [removed: projects or] [added: projects,] if our new products or technologies fail to achieve customer [removed: acceptance or] [added: acceptance, if] competitors develop more capable technologies or offerings or develop new technologies or offerings [added: or deliver existing offerings] faster, [added: or if stakeholders perceive our company as being slow to adapt, lacking in innovation or inconsistently delivering results,] we may be unsuccessful in obtaining new contracts or winning all or a portion of next generation programs, including in key areas such as hypersonics and classified work, and this could adversely affect our future performance and financial results.

Changes in U.S. [removed: government] [added: Government] and other nations’ [removed: administration] [added: administrations] and their associated shifts in policy and priorities could also impact our operations and market conditions.

Global conflicts, including [removed: Russia’s invasion of Ukraine, conflicts in the Middle East, and heightened tensions in the Pacific region,] [added: those noted above,] have significantly elevated global geopolitical tensions and security concerns and resulted in increased demand for some of our products and services.

However, if we are unable to increase production to meet demand in the timeframe [removed: expected by potential customers,] [added: customers expect,] whether due to supply constraints, government funding, or otherwise, then we may lose sales opportunities as those [removed: possible] customers seek alternatives, even less capable ones, that may be delivered more quickly.

Our international sales also could be adversely affected by actions taken by the U.S. Government, including the exercise of foreign policy, Congressional oversight or the financing of particular programs, that may [added: alter the international demand for our products or that may] prevent, restrict or otherwise impose conditions upon the sale and delivery of our products or the transfer of sensitive technology.

If we are unable to successfully mitigate [removed: the impact,] [added: these impacts,] our future profits, margins and cash flows, particularly for existing fixed-price contracts, may be adversely affected.

[added: In addition, macroeconomic conditions could cause budgetary] pressures for our government customers resulting in reductions or delays in spending, which could adversely impact our business.

Interest rates also impact our [removed: pension.][added: pension obligations.]

For example, higher interest rates [removed: generally] reduce the measure of our gross pension obligations while lower interest rates increase it.

In [removed: 2024, 26%] [added: 2025, 28%] of our total [removed: net] sales were associated with international customers.

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We may face similar risks for other complex and technologically advanced programs.

*Executive Orders.* The President has issued multiple Executive Orders (EOs), including two that are intended to (i) simplify and accelerate the procurement process through an overhaul of the FAR and (ii) modernize the defense acquisition process by promoting commercial solutions, use of innovative acquisition authorities, and other existing streamlined processes.

The Secretary of War recently released the Department’s Acquisition Transformation Strategy that is consistent with these EOs, and also aims to restructure the requirements process, funding authority, and reorganizes the Acquisition workforce.

As part of this broader transformation, the U.S. Government is shifting its acquisition strategy toward longer‑term contract structures; some contracts that were previously negotiated on an annual basis may now be executed as a multi‑year procurement.

We expect a revision to the DFARS in the next several months as well.

In addition, the President recently issued an EO that could limit certain contractors performing work under critical defense weapons, supplies, and equipment contracts from issuing excessive dividends or owner distributions, making share repurchases, and placing certain restrictions on executive compensation, as well as additional measures.

It is expected that this EO will be implemented this year through a new DFARS clause and the EO’s restrictions will apply only after the DoW determines that a contractor has failed to meet identified contract performance requirements.

While the applicability and full impact of these initiatives on our business is uncertain, we are adapting to meet the changes in U.S. Government buying behaviors and expectations.

We will continue to monitor and assess their effects on our business and financial results.

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We are facing increased competition from new entrants, startups and non-traditional defense contractors.

Additionally, the DoW has proposed broad-reaching acquisition reforms that, if enacted, could impact our business and results of operations.

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complete, and many result in no adverse action against us.

The future occurrence of non-compliant components in our programs could cause

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Our ability to invest, or attract investment, to fund increased production to meet anticipated demand, and our ability to earn returns on those investments, is subject to government policies and priorities and our ability to perform, the impacts of which could impact our results of operations.

Government actions relating to rare earth minerals that are used in certain of our products, including U.S. Government sourcing prohibitions on the import of such minerals and the imposition of export controls on such minerals by China, have

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raised concerns about supply availability.

The rare earth supply chain continues to be vulnerable to disruption due to increasing scarcity and constrained capacity, and we are developing and executing mitigation plans designed to safeguard supply and meet future delivery commitments.

We believe we will continue to meet our production and delivery commitments.

However, if we are unable to successfully mitigate disruptions to the availability of rare earth minerals, our future profits, margins and cash flows may be adversely affected.

Certain materials and component parts that go into making our products are imported into the U.S. and are subject to tariffs, sanctions, embargoes, export and import controls, and other trade restrictions.

The U.S. Government has increased, expanded, or imposed new tariffs on goods imported from various countries.

We also export certain products to other countries, and several countries have increased or imposed additional tariffs in response to U.S. tariffs.

The tariff environment has been dynamic in 2025, with changes occurring on an ongoing basis, and it is possible that additional developments will occur in the future, including as a result of negotiations between the U.S. and trade partners and legal challenges to the tariffs.

At this time, excluding the near-term cash flow impact, we do not believe that the tariffs announced by the U.S. or actions taken in response to these tariffs by other countries will have a material adverse effect upon our results of operation or financial condition over the long term.

The actual impact of the tariffs is subject to a number of factors including the effective date and duration of such tariffs, changes in the amount, scope and nature of the tariffs, any countermeasures that the target countries may take, the result of negotiations between the U.S. and trade partners, how our Tier 1 and Tier 2 suppliers react, possible substitution effects, possible duty-free entry entitlements, the outcome of any legal challenges, and any mitigating actions that may become available.

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announced programs.

Additionally, third parties may assert

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Additionally, because allowable pension costs are included in the price of our products and services, those costs can affect our affordability and competitiveness.

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We are subject to income and other taxes in the U.S. and foreign jurisdictions.

See also “Status of the F-35 Program” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the current program status and specific challenges and risks.

This can affect our ability to negotiate mutually agreeable contract terms.

We are facing increased competition from startups and non-traditional defense contractors, which may have a lower cost structure or be able to move more quickly in addition to being favored, in certain cases, by procurement policy.

contract exceed total estimates of the transaction price.

prevent or lessen the benefit of collaboration.

In 2023, China also implemented broad-based export restrictions on certain minerals used in the production of, among other things, semiconductors and missile systems; in 2024, China specifically banned export of certain minerals to the U.S. China may impose additional sanctions that could adversely affect Lockheed Martin, our suppliers, teammates and/or partners in the future.

In addition, macroeconomic conditions could cause budgetary

The improper conduct of our employees or others working on our

operations.

Although under the majority of the GACs we have purchased, we are relieved of all responsibility for the associated pension obligations, we have purchased and may in the future purchase GACs whereby the insurance company reimburses the pension plans but we remain responsible for paying benefits under the plans to covered retirees and beneficiaries and are subject to the risk that the insurance company will default on its obligations to reimburse the pension trust.

For example, beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures immediately in the year incurred and requires taxpayers to amortize such expenditures over five years for tax purposes (research and development capitalization).

While the most significant impact of this provision was to cash tax liability for 2022, the tax year in which the provision took effect, the impact will continue over the five-year amortization period, but decline to an immaterial amount in year six.

For example, we are limited in the amount of insurance we

bids could result in costly changes to our operations or affect our competitiveness on future bids, or our ability to bid at all.

The MD&A generally discusses [removed: 2024] [added: 2025] and [removed: 2023] [added: 2024] items and year-to-year comparisons between [removed: 2024] [added: 2025] and [removed: 2023.][added: 2024.]

Discussions of [removed: 2022] [added: 2023] items and year-to-year comparisons between [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results or Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, [removed: 2023] [added: 2024] filed with the SEC on January [removed: 23, 2024.][added: 28, 2025.]

In [removed: 2024, 73%] [added: 2025, 72%] of our [removed: $71.0] [added: $75.0] billion in [removed: net] sales were from the U.S. Government, either as a prime contractor or as a subcontractor (including [removed: 65%] [added: 63%] from the Department of [added: War (DoW), also known as the Department of] Defense [removed: (DoD)), 26%] [added: under 10 U.S.C. § 111(a)) and 28%] were from international customers (including foreign military sales (FMS) contracted through the U.S. [removed: Government) and 1% were from U.S. commercial and other customers.][added: Government).]

[removed: Keys to enabling success of our strategy include] [added: We achieve this by] developing and investing in differentiating technologies, forging strategic partnerships, including with commercial companies, executing on our multi-year business transformation [removed: initiative to enhance our digital infrastructure] [added: initiative, maintaining fiscal discipline,] and [removed: increase efficiencies] [added: continuing to cultivate the greatest aerospace] and [removed: collaboration throughout our business] [added: defense workforce talent] and [removed: maintaining fiscal discipline.][added: culture in the world.]

We invest substantially in our people to ensure that our [removed: workforce has] [added: people have] the technical skills necessary to succeed, and we expect to continue to invest internally in innovative technologies that address rapidly evolving mission requirements for our customers.

We also will continue to evaluate our [added: organizational structure and] portfolio and will make strategic [added: changes,] acquisitions or divestitures, as appropriate, while deepening our connection to commercial industry through cooperative partnerships, joint ventures and equity investments.

[removed: The financial results of Terran Orbital have been included within our] operating results in the period post-acquisition.

See [removed: Note] [added: “Note] 1 [added: – Organization and Significant Accounting Policies” included in our Notes] to [removed: the consolidated financial statements] [added: Consolidated Financial Statements] for further information regarding the acquisition of [removed: Terran Orbital.][added: Rapid Solutions.]

U.S. [added: Government] Budget Environment

[removed: With approximately three quarters of our sales from the] U.S. [removed: Government, U.S.] Government spending levels, particularly defense spending, and timely funding thereof can affect our financial performance over the short and long term.

[removed: We] [added: Despite the Administration indicating their desire for a significant increase in defense spending in FY2027, we] anticipate the federal [removed: budget] [added: budget, additional potential tax law changes, and regulatory environment] will continue to be subject to debate and compromise shaped by, among other things, the [removed: new] Administration and Congress, [added: heightened political tensions,] the global security environment, inflationary pressures, and macroeconomic conditions.

[removed: Geopolitical and] [added: Global] Economic [added: and Geopolitical] Environment

We operate in a complex and evolving global security [removed: environment and our business is affected by geopolitical and security issues.][added: environment.]

[removed: We operate primarily in] [added: As] a [removed: long-cycle business and] [added: result,] the U.S. Government has been [added: broadly] focused on increasing industry capacity to meet [added: long-term] demand.

We continue to work with the U.S. [removed: Government] [added: Government, international partners,] and our supply chain to [removed: evaluate increases in] [added: increase] capacity [removed: at] [added: and enhance] our [added: ability to scale our] operations to anticipate potential [removed: demand and enable us to] [added: demand,] deliver critical [removed: capabilities.][added: capabilities, and replenish depleted U.S. and allied stockpiles of products that have been consumed over the past several years.]

We [added: have experienced, and] continue to [removed: experience] [added: experience,] supply chain challenges, including supplier shortages and performance issues.

In addition, [added: macroeconomic conditions including] elevated levels of inflation [removed: and macroeconomic conditions] present risks for us, our suppliers and the stability of the broader defense industrial base.

[added: Supply chain challenges, including both the availability and cost of goods, may be further impacted due to the imposition of tariffs and the availability of raw materials including rare earth minerals, as discussed below under “Recent Developments in Trade and Regulatory Policies.”] If we experience significant supply chain issues or high rates of inflation, and are unable to successfully mitigate the impact, our future profits, margins and cash flows, particularly for existing fixed-price contracts, may be adversely affected.

Our international business is conducted either by FMS contracted through the U.S. Government or by direct commercial sales (DCS) to international [added: government] customers.

In [removed: 2024,] [added: 2025,] approximately [removed: 73%] [added: 77%] of our sales to international customers were FMS and about [removed: 27%] [added: 23%] were DCS.

Additionally, in [removed: 2024,] [added: 2025,] substantially all of our sales from international customers were in our Aeronautics, MFC and RMS business segments.

Space’s sales from international customers were not material in [removed: 2024.][added: 2025.]

In [removed: 2024,] [added: 2025,] international customers accounted for [removed: 32%] [added: 36%] of Aeronautics’ [removed: net] sales.

[added: Other areas of] international expansion at our Aeronautics business segment include the F-16 and C-130J programs, which continue to draw interest from international customers for new aircraft.

In [removed: 2024,] [added: 2025,] international customers accounted for 29% of MFC’s [removed: net] sales.

Additionally, we continue to see international demand for our tactical and strike missile [removed: products,] [added: products and fire control systems,] where we received orders [removed: from Poland] for [removed: precision fire systems and for Joint Air-to-Surface Standoff Missile (JASSM).]

In [removed: 2024,] [added: 2025,] international customers accounted for [removed: 32%] [added: 34%] of RMS’ [removed: net] sales.

We have [removed: ongoing] combat systems programs associated with different classes of surface combatant ships [removed: for] [added: from] customers in [removed: Canada, Chile] [added: Canada] and [removed: New Zealand.][added: Germany.]

In our [removed: training and] [added: training,] logistics [removed: solutions] [added: and simulation] portfolio, we have active programs and pursuits in the United Kingdom, [removed: the Kingdom of Saudi Arabia, Canada,] Singapore, Australia, [removed: Germany] [added: Germany, Japan, New Zealand, Republic of Korea] and France.

We have active development, production and sustainment support of the S-70 Black Hawk and MH-60 Seahawk helicopters to international customers, including India, Philippines, Australia, the Republic of Korea, Thailand, the Kingdom of Saudi [removed: Arabia] [added: Arabia, Japan,] and Greece.

From [removed: program] inception [added: of the F-35 program] through December 31, [removed: 2024,] [added: 2025,] we have delivered [removed: 1,102] [added: 1,293] production F-35 aircraft, including [removed: 797] [added: 927] F-35A variants, [removed: 203] [added: 238] F-35B variants and [removed: 102] [added: 128] F-35C variants, and our backlog as of that date was [removed: 408 aircraft, demonstrating the F-35 program’s continued progress and longevity.][added: 368 aircraft.]

In [removed: December 2024,] [added: addition, during the third quarter of 2025,] Lockheed Martin and the Joint Program Office (JPO) reached an agreement for [removed: an undefinitized contract action for] Lot 18 [added: and Lot 19] F-35 Air Vehicle Production Contract for [removed: 145 aircraft.][added: 296 aircraft, followed by definitization on September 29, 2025.]

The scope includes aircraft for the U.S. Air Force, Navy, and Marines and the International Partners and [removed: Foreign Military Sales (FMS)] [added: FMS] customers, in addition to the required infrastructure for the international Final Assembly and Checkout Facilities (FACOs) and other equipment.

At December 31, [removed: 2024,] [added: 2025,] our backlog was [removed: $176.0] [added: $193.6] billion compared [removed: with $160.6] [added: to $176.0] billion at December 31, [removed: 2023.][added: 2024.]

[added: We expect to recognize approximately 37%] of our backlog over the next 12 months and [added: a total of] approximately 60% over the next 24 months as revenue, with the remainder recognized thereafter.

Funded backlog was [removed: $107.8] [added: $120.2] billion at December 31, [removed: 2024,] [added: 2025,] as compared to [removed: $107.4] [added: $107.8] billion at December 31, [removed: 2023.][added: 2024.]

| | | | | | | [removed: 2024] [added: 2025] | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | |

| [removed: Net sales] [added: Sales] | | | | | | $ | [removed: 71,043] [added: 75,048] | | | | | $ | [removed: 67,571] [added: 71,043] | | | | | $ | [removed: 65,984] [added: 67,571] | | | | |

| Gross profit | | | | | | [removed: 6,930] [added: 7,619] | | | | | | [removed: 8,479] [added: 6,930] | | | | | | [removed: 8,287] [added: 8,479] | | | | | |

| Other income, net | | | | | | [removed: 83] [added: 112] | | | | | | [removed: 28] [added: 83] | | | | | | [removed: 61] [added: 28] | | | | | |

We are a global aerospace and defense technology company that builds and sustains the solutions America and its allies need to deter conflict and advance national security and scientific exploration objectives.

Our four business areas – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space – work as one company offering integrated solutions, at scale, across all warfighting domains.

Our defense, space, intelligence, homeland security, information technology, and cybersecurity capabilities serve U.S. and international customers in defense, civil and commercial applications.

Our principal customers are agencies of the U.S. Government and allies.

Recent regional conflicts have demonstrated the integral role Lockheed Martin products play in protecting people, and we are rapidly transforming our business to meet increased demand.

We are expanding production capacity to continue delivering at scale, and we are harnessing leading-edge technologies like artificial intelligence and autonomy, open-architecture systems, and advanced networking to make defense forces more agile, adaptive and unpredictable.

Our goal is to deliver overwhelming capability and value – quickly, at the needed quantities and with the greatest effectiveness – to enable overmatch and strengthen deterrence today and into the future.

As previously disclosed, during the second quarter of 2025, we paid $360 million, in cash, for the acquisition of Amentum’s Rapid Solutions business (Rapid Solutions).

This acquisition integrates Rapid Solutions’ advanced space and airborne mission capabilities, including intelligence, surveillance and reconnaissance technologies, into Lockheed Martin’s portfolio.

Rapid Solutions operates within our Space business segment and the financial results have been included within our

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Global Security

Conflicts or tensions in areas such as Europe, the Middle East, and the Pacific region have heightened tensions and highlighted security requirements globally, including in these regions as well as the U.S. Although these tensions and conflicts may drive interest in specific products or services as countries seek to improve their security posture, our business primarily operates on a long-cycle basis.

Our business and financial performance are impacted by general economic conditions including inflationary pressures, delays and disruptions in supply chains, business slowdowns or shutdowns, workforce challenges and labor shortfalls, impacts from technological change, and market volatility.

These macroeconomic factors have contributed, and may continue to contribute, to increased costs, delays, disruptions and other performance challenges, as well as competing demands for limited resources to address such increased costs and other challenges, for our company, our suppliers and partners, and our customers.

While on-time deliveries are improving, pressures remain in certain areas, and we are proactively working with our suppliers to meet our contract commitments.

*Recent Developments in Trade and Regulatory Policies*

Certain materials and component parts that go into making our products are imported into the U.S. and are subject to tariffs, sanctions, embargoes, export and import controls, and other trade restrictions.

The U.S. Government has increased, expanded, or imposed new tariffs on goods imported from various countries.

We also export certain products to other countries, and several countries have increased or imposed additional tariffs in response to U.S. tariffs.

The tariff environment has been dynamic in 2025, with changes occurring on an ongoing basis, and it is possible that additional developments will occur in the future, including as a result of negotiations between the U.S. and trade partners and legal challenges to the tariffs.

Tariffs that have been enacted or expanded by the U.S. or other countries had an impact of approximately $485 million on our cash flows during the year ended December 31, 2025.

However, we expect a substantial portion of this impact to be recoverable over time.

We are closely monitoring the situation and evaluating the potential future impacts of the imposition of the announced tariffs to our business and financial condition.

We are pursuing available options to fully or substantially mitigate the impact of the increased tariffs or any future tariffs, including seeking exclusions, through drawbacks, refunds, recovering the costs in the pricing of our products, or securing alternative sources of materials or products.

However, these actions may not be successful in fully or substantially mitigating the impact of tariffs, and, even if successful, there could continue to be a near-term volatility in cash flows due to the timing of when tariffs are paid compared to when such costs may be refunded or recovered.

Additionally, a substantial amount of our imports qualify for duty-free entry.

At this time, excluding the near-term cash flow impact, we do not believe that the tariffs announced by the U.S. or actions taken in response to these tariffs by other countries will have a material adverse effect upon our results of operations or financial condition over the long term.

Significant changes in tax, trade, or other policies either in the U.S. or other countries, as well as any fluctuation in foreign exchange rates as a result of such activity, could materially increase our tax burden, the price we pay for materials and component parts, the price our customers pay, and result in delays in products received or non-delivery from our vendors as well as impact the availability of materials (including rare earth minerals), which could materially impact our business and financial results.

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In addition, recent government actions relating to rare earth minerals that are used in certain of our products have raised concerns about supply availability.

We are monitoring the rare earth minerals supply chain and maintaining active engagement with our suppliers as the regulatory landscape evolves.

If we are unable to successfully mitigate disruptions to the availability of rare earth minerals, our future profits, margins and cash flows may be adversely affected.

See Item 1A - Risk Factors for additional risks to the company related to the geopolitical and economic environment.

Our primary customer is the U.S. Government, from which we derived 72% of our sales in 2025, including 63% from the DoW.

Funding for U.S. Government programs is subject to a variety of factors that can affect our business, including the Administration’s budget requests and procurement priorities and policies, annual congressional budget authorization and appropriation processes, and other U.S. Government domestic and international priorities.

The Administration published its Fiscal Year (FY) 2026 budget request in June 2025.

The budget request includes $848.3 billion in the base budget (discretionary) funding, and $113.3 billion in reconciliation (mandatory) funding.

The One Big Beautiful Bill Act was signed by the President on July 4, 2025.

The bill provides more than $150 billion in mandatory funding (inclusive of the $113.3 billion reconciliation funding) for the DoW available until September 30, 2029.

We are a global aerospace and defense company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

We also provide a broad range of management, engineering, technical, scientific, logistics, system integration and cybersecurity services.

Our main areas of focus are in defense, space, intelligence, homeland security and information technology, including cybersecurity.

We serve both U.S. and international customers with products and services that have defense, civil and commercial applications, with our principal customers being agencies of the U.S. Government.

Our 21st Century Security® vision is to accelerate the adoption of advanced networking and other leading-edge technologies into the American defense enterprise, while enhancing the performance and value of our platforms and products for our customers.

The aim of 21st Century Security is to integrate and continuously upgrade new and existing systems across all domains with advanced, open-architecture networking and operational technologies that make defense forces more agile, adaptive and unpredictable, enabling overmatch and strengthening deterrence today and into the future.

21st Century Security guides our strategy and investments.

As our growth pillars continue to evolve, we are focusing on advancing all-domain mission solutions through investments in digital technologies such as Artificial Intelligence (AI)/Machine Learning (ML), Autonomy and Crewed/Uncrewed Teaming, Generative Design and other technologies and capabilities enabling Combined Joint All-Domain Command and Control (CJADC2).

Innovations in these areas will expand capability, improve interoperability, increase demand for our multi-domain solutions and drive efficient conversion of backlog into growth across our portfolio.

We have well established programs across our business segments that continue to experience growth, including F-35 sustainment activity (Aeronautics); increased Patriot Advanced Capability-3 (PAC-3) production rates and increased demand for High Mobility Artillery Rocket System (HIMARS®) and Guided Multiple Launch Rocket Systems (GMLRS) (Missiles and Fire Control); radar surveillance systems and CH-53K King Stallion heavy lift helicopter (Rotary and Mission Systems); and the modernization of and enhancements to the Trident II D5 Fleet Ballistic Missile (FBM) (Space).

Additionally, our teams continue to transform our products and rapidly innovate for the future, developing 6th generation air dominance technologies within Skunk Works®, demonstrating autonomous capabilities with the X-62A (F-16) and optionally piloted BLACK HAWK®, creating new Joint All-Domain Operating systems with Defense of Guam and AIR 6500 in Australia, establishing small-to-medium satellite capabilities to support proliferated space constellations and advancing hypersonic capabilities.

Finally, we are always in pursuit of new program awards to develop future platforms that enable us to continue to strengthen our national defense and advance deterrence and global security.

Underpinning our ability to execute our strategy is our talent and culture.

On September 9, 2024, we completed the sale of our Commercial Engine Solutions (CES) business, which was part of our Aeronautics business segment.

We received $170 million in cash from the sale.

Gains recognized from the sale in 2024 were not significant.

The final gain is subject to certain post-closing adjustments, including final working capital, indemnification, and tax adjustments, which we expect to complete in 2025.

This sale did not represent a strategic shift and the impacts to our consolidated results of operation, financial position, and cash were not significant.

Accordingly, the operating results and cash flows for the CES business up to the divestiture date have not been reclassified to discontinued operations.

On October 30, 2024, we closed our acquisition of Terran Orbital Corporation (Terran Orbital) for a purchase consideration of $314 million, which will be included in our Space business segment.

Terran Orbital’s product and service offerings include satellite design, production, launch planning, mission operations, and on-orbit support for the aerospace and defense industries.

We believe this acquisition will enable us to broaden our capabilities and offerings, provide additional innovative solutions to meet our customers’ emerging requirements, and provide expanded opportunities for our combined employees.

On March 22, 2024, the President signed into law the second Fiscal Year (FY) 2024 Consolidated Appropriations package, which includes the DoD funding.

This legislation reflects the Fiscal Responsibility Act of 2023 (FRA) spending limit of $886 billion for National Defense, of which $842 billion was for the DoD base budget.

The President’s FY 2025 budget request was submitted to Congress on March 11, 2024, initiating the FY 2025 defense authorization and appropriations legislative process.

The request included $895 billion for National Defense, of which $850 billion is for the DoD base budget, in keeping with the limit established by the FRA.

While compression on overall requirements driven by the FRA limit is evident, the Office of the Secretary of Defense has stated the FY 2025 budget proposal meets their objectives of keeping National Defense Strategy priorities on track.

On April 24, 2024, the President signed a bill providing a total of $95 billion in additional supplemental funding for Ukraine, Israel and Taiwan, including funding for the restock of U.S. munitions capacity.

Supplemental funding legislation is not subject to the FRA limits.

The House and Senate continue the legislative process on the FY 2025 budget.

The National Defense Authorization Act for Fiscal Year 2025, signed by the President on December 24, 2024, is consistent with the FY 2025 President’s Budget Request (PBR) and Congressionally mandated budget caps established by the FRA with a topline of $849.8 billion.

The House Appropriations Committee also marked its bill at this same level.

The Senate Appropriations Committee, however, did not adhere to the FRA spending caps and marked budgets above the PBR, providing between a $21 billion and $25 billion increase over the PBR level.

Regardless of toplines, all four Committees support additional funding for several of our programs, spread across our four business areas.

Congress still needs to approve or revise the President’s FY 2025 budget proposal through enactment of appropriations bills and other policy legislation, which would then require final approval from the President in order for the FY 2025 budget process to conclude.

A second Continuing Resolution (CR) for FY 2025 passed the House and Senate on December 20, 2024, and was signed by the President on December 21, 2024.

The bill funds U.S. Government operations through March 14, 2025.

In addition to the Continuing Resolution, the President also signed the Disaster Relief Supplemental Appropriations Act on December 21, 2024, which includes more than $100 billion in supplemental funding.

Of note, the final version of the bill did

not address the debt ceiling, which is set to expire mid-January 2025 and is expected to cause challenges at the start of the 119th Congressional negotiations.

The estimated fair value of our outstanding debt was [removed: $20.2] [added: $22.0] billion at December 31, [removed: 2024] [added: 2025] and the outstanding principal amount of debt, including short-term and long-term debt, was [removed: $21.6] [added: $22.9] billion, excluding unamortized discounts and issuance costs of [removed: $1.3] [added: $1.2] billion.

A 10% change in the level of interest rates would not have a material impact on the fair value of our outstanding debt at December 31, [removed: 2024.][added: 2025.]

The aggregate notional amount of our outstanding interest rate swaps was $1.3 billion at both December 31, [removed: 2024] [added: 2025] and [removed: 2023.][added: 2024.]

The aggregate notional amount of our outstanding foreign currency hedges at December 31, [removed: 2024] [added: 2025] and [removed: 2023] [added: 2024] was [removed: $7.5] [added: $7.2] billion and [removed: $6.5] [added: $7.5] billion.

At December 31, [removed: 2024] [added: 2025] and [removed: 2023,] [added: 2024,] the net fair value of our derivative instruments was not material (see “Note 15 – Fair Value Measurements” included in our Notes to Consolidated Financial Statements).

As of December 31, [removed: 2024,] [added: 2025,] investments in the trust totaled [removed: $1.8] [added: $2.0] billion and are reflected at fair value on our consolidated balance sheet in other noncurrent assets.

Both the change in the fair value of the trust and the change in the value of the liabilities are recognized on our consolidated statements of earnings in other unallocated, net and were not material for the year ended December 31, [removed: 2024.][added: 2025.]

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We do not hold or issue derivative financial instruments for trading or speculative purposes.

[removed: Keys to enabling success of our strategy include] [added: We achieve this by] developing and investing in differentiating technologies, forging strategic partnerships, including with commercial companies, executing on our multi-year business transformation [removed: initiative to enhance our digital infrastructure] [added: initiative, maintaining fiscal discipline,] and [removed: increase efficiencies] [added: continuing to cultivate the greatest aerospace] and [removed: collaboration throughout our business] [added: defense workforce talent] and [removed: maintaining fiscal discipline.][added: culture in the world.]

We invest substantially in our people to ensure that our [removed: workforce has] [added: people have] the technical skills necessary to succeed, and we expect to continue to invest internally in innovative technologies that address rapidly evolving mission requirements for our customers.

We also will continue to evaluate our [added: organizational structure and] portfolio and will make strategic [added: changes,] acquisitions or divestitures, as appropriate, while deepening our connection to commercial industry through cooperative partnerships, joint ventures and equity investments.

The F-35 program is our largest program, generating [removed: 26%] [added: 27%] of our total consolidated [removed: net] sales, as well as [removed: 65%] [added: 67%] of Aeronautics’ [removed: net] sales in [removed: 2024.][added: 2025.]

Development is focused on [removed: modernization of] [added: modernizing] F-35’s capability and addressing emerging threats.

[removed: See also] [added: For additional information on the F-35 program, see] Item 1A - Risk Factors for a discussion of risks related to the F-35 program.

Our Advanced Development Programs (ADP) organization, also known as Skunk Works®, is focused on future systems, including unmanned and manned aerial systems and next generation capabilities [removed: for air dominance, hypersonics, intelligence, surveillance, reconnaissance, situational awareness and air mobility.]

MFC provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; [added: and] mission operations support, readiness, engineering support and integration [removed: services; ground vehicles; and energy management solutions.][added: services.]

- The Multiple Launch Rocket System (MLRS), Precision Strike Missile (PrSM), Joint Air-to-Surface Standoff Missile (JASSM), Long Range Anti-Ship Missile (LRASM), [removed: and] Hellfire [added: and Joint Air-to-Ground Missile (JAGM)] tactical and strike missile programs.

Hellfire [removed: is an] [added: and JAGM are] air-to-ground missile used on rotary and fixed-wing aircraft, which is produced for the U.S. Army, Navy, Marine Corps and international customers.

RMS’ major [removed: programs] [added: lines of business] include:

- Sikorsky helicopter programs such as those related to the Black Hawk, Seahawk® and CH-53K King Stallion heavy lift helicopters, which are in service with U.S. and foreign governments, [added: and] the Combat Rescue Helicopter (CRH) utilized by the [added: U.S. Air Force.]

- Integrated warfare systems and sensors (IWSS) programs such as Aegis Combat System (Aegis) programs that serve as an air and missile defense system for the U.S. Navy and international customers and are also a sea and land-based element of the U.S. missile defense system, and the Littoral Combat Ship (LCS), Multi-Mission Surface Combatant (MMSC), and [added: River-Class Destroyer (RCD) (formerly known as] Canadian Surface [removed: Combatant (CSC)] [added: Combatant)] programs to provide surface combatant ships for the U.S. Navy and international customers that are designed to operate in shallow waters and the open ocean.

- [removed: Training and] [added: Training,] logistics [removed: solutions] [added: and simulation] (TLS) programs such as those providing sustainment services and programs that provide simulators and associated training to U.S. military and foreign government customers.

- The Transport [added: and Tracking] Layer programs, [added: multiple tranches of] small [removed: satellite capabilities] [added: satellites] to support [added: the] proliferated space [added: architecture, with] constellations [removed: and early] [added: of missile] warning [added: and] communications [added: satellites] for the Space Development Agency.

[removed: We rely on other companies to provide materials, components and products and to] perform a portion of the services that are provided to our customers under the terms of most of our contracts.

Although long-term agreements have historically helped enable a continued supply of these materials, supply chain challenges, supplier disputes, regulatory restrictions, and inflationary pressures have [removed: caused] [added: resulted in] certain parts’ shortages, extended lead times and pricing escalations affecting certain sources of supply.

These dynamics are expected to continue in [removed: 2025.][added: 2026.]

[removed: Our human capital management strategy, which we refer to as our people strategy, tightly aligns to our business needs and technology strategy and] [added: In 2025, it] focused [removed: in 2024] on continuing to accelerate the transformation of our [removed: technology for] workforce management [added: technology] through investments in upgraded systems and processes, increasing our ability to meet the quickly changing needs of our business, and maintaining a working environment and culture that is supportive of all employees and reflects our core value of “Respect Others.” We structure our people strategy and its implementation to comply with the laws and regulations to which we are subject as a federal government contractor.

As of December 31, [removed: 2024,] [added: 2025,] we had a highly skilled workforce made up of approximately [removed: 121,000] [added: 123,000] employees, including approximately [removed: 70,000] [added: 72,000] engineers, scientists and information technology professionals.

As of December 31, [removed: 2024,] [added: 2025,] approximately 93% of our workforce was located in the U.S. and approximately 19% of our employees were covered by collective bargaining agreements with various unions.

This has continued to be the case in [removed: 2024.][added: 2025.]

[removed: An] [added: Our early career strategy, to include partnerships with universities and college internship roles, is an] integral part of [added: developing the full breadth of] our [removed: people strategy is early career hiring through college and intern] [added: talent] pipelines, particularly in technical fields and critical skills areas.

We seek to access the broadest possible pool of talent to enable us to meet our hiring [removed: needs, and we work to expand Lockheed Martin’s brand awareness and positioning as a best place to work.][added: needs.]

We have a [removed: hybrid] [added: distributed] workforce model that enables flexible working arrangements for employees and teams who can meet our customer commitments remotely, which has helped recruit and retain talent.

In addition, we invest in the development of our employees through training, apprenticeship programs, security clearance sponsorship, leadership development plans and [removed: offering] tuition assistance [removed: programs] for continuing education or industry certifications.

We believe this employee development makes us more competitive and assists with leadership succession [removed: planning throughout the company.][added: planning.]

We often collaborate with our competitors through teaming arrangements in efforts to provide our customers with the best mix of capabilities to address specific [removed: requirements, such as our recently announced strategic teaming agreement with General Dynamics to produce solid rocket motors, enhancing security and resilience in a critical domestic supply chain.][added: requirements.]

In some areas of our business, customer requirements [added: and acquisition processes] are changing to encourage or facilitate expanded competition.

If a contract is terminated for convenience, we generally are protected by provisions covering reimbursement for costs incurred on the [removed: contract] [added: contract, up to termination,] and profit on those costs.

However, [removed: under] certain classified fixed-price development and production [removed: contracts,] [added: contracts carry higher performance risk, and] we are unable to insure [removed: risk of] loss to government property because [removed: of] the classified nature of the contracts [removed: and] [added: prevents] the [removed: inability to disclose classified] [added: disclosure of] information necessary for underwriting and claims to commercial insurers.

For information regarding these matters, including current estimates of the amounts that we believe are required for remediation or cleanup to the extent that they are probable and estimable, see [removed: “Critical Accounting Policies – Environmental Matters” in Management’s Discussion and Analysis of Financial Condition and Results of Operations and] “Note 14 – Legal Proceedings, Commitments and Contingencies” included in our Notes to Consolidated Financial Statements.

We are a global aerospace and defense technology company that builds and sustains the solutions America and its allies need to deter conflict and advance national security and scientific exploration objectives.

Our four business areas – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space – work as one company offering integrated solutions, at scale, across all warfighting domains.

Our defense, space, intelligence, homeland security, information technology, and cybersecurity capabilities serve U.S. and international customers in defense, civil and commercial applications.

Our principal customers are agencies of the U.S. Government and allies.

Recent regional conflicts have demonstrated the integral role Lockheed Martin products play in protecting people, and we are rapidly transforming our business to meet increased demand.

We are expanding production capacity to continue delivering at scale, and we are harnessing leading-edge technologies like artificial intelligence and autonomy, open-architecture systems, and advanced networking to make defense forces more agile, adaptive and unpredictable.

Our goal is to deliver overwhelming capability and value – quickly, at the needed quantities and with the greatest effectiveness – to enable overmatch and strengthen deterrence today and into the future.

Aircraft production is expected to continue well into the future given the U.S. Government’s stated objective of procuring 2,456 aircraft for the U.S. Air Force, U.S. Marine Corps, and U.S. Navy.

We also have commitments from seven international partner countries and 12 FMS customers, who collectively during the year indicated their intent to purchase 72 additional aircraft beyond their existing programs of record.

The F-35 program is significant and complex, and we, our customers, and our and our customers’ suppliers continually review aircraft performance, schedule, cost and requirements.

Our current areas of focus include technology modernization, life-cycle cost containment, delivery schedule optimization, and aircraft readiness enhancements.

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

for air dominance, hypersonics, intelligence, surveillance, reconnaissance, situational awareness and air mobility.

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Effective January 2026, the IWSS and C6ISR lines of business within RMS were restructured and renamed Sensors, Effectors & Mission Systems (SEMS) and Mission Integrated Command and Control (MIC2).

This includes realignment of various programs, such as Aegis and RCD moving from what was historically IWSS to MIC2, which more closely aligns with C6ISR.

SEMS and MIC2 will therefore incorporate an updated mix of existing program portfolios designed to accelerate mission‑focused solutions and enhance our customers’ experience.

- The Orion Multi-Purpose Crew Vehicle (Orion), NASA’s next generation exploration-class crewed vehicle for human exploration to the Moon and throughout the solar system.

We rely on other companies to provide materials, components and products and to

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Our human capital management strategy, which we refer to as our people strategy, tightly aligns to our business needs and technology strategy.

During 2025, we hired nearly 10,800 new employees into Lockheed Martin, nearly 1,500 of which were college hires.

In addition to the 10,800, we created internship opportunities for an additional 2,000 students.

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

We are a global aerospace and defense company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

We also provide a broad range of management, engineering, technical, scientific, logistics, system integration and cybersecurity services.

Our main areas of focus are in defense, space, intelligence, homeland security and information technology, including cybersecurity.

We serve both U.S. and international customers with products and services that have defense, civil and commercial applications, with our principal customers being agencies of the U.S. Government.

Our 21st Century Security® vision is to accelerate the adoption of advanced networking and other leading-edge technologies into the American defense enterprise, while enhancing the performance and value of our platforms and products for our customers.

The aim of 21st Century Security is to integrate and continuously upgrade new and existing systems across all domains with advanced, open-architecture networking and operational technologies that make defense forces more agile, adaptive and unpredictable, enabling overmatch and strengthening deterrence today and into the future.

21st Century Security guides our strategy and investments.

As our growth pillars continue to evolve, we are focusing on advancing all-domain mission solutions through investments in digital technologies such as Artificial Intelligence (AI)/Machine Learning (ML), Autonomy and Crewed/Uncrewed Teaming, Generative Design and other technologies and capabilities enabling Combined Joint All-Domain Command and Control (CJADC2).

Innovations in these areas will expand capability, improve interoperability, increase demand for our multi-domain solutions and drive efficient conversion of backlog into growth across our portfolio.

We have well established programs across our business segments that continue to experience growth, including F-35 sustainment activity (Aeronautics); increased Patriot Advanced Capability-3 (PAC-3) production rates and increased demand for High Mobility Artillery Rocket System (HIMARS®) and Guided Multiple Launch Rocket Systems (GMLRS) (Missiles and Fire Control); radar surveillance systems and CH-53K King Stallion heavy lift helicopter (Rotary and Mission Systems); and the modernization of and enhancements to the Trident II D5 Fleet Ballistic Missile (FBM) (Space).

Additionally, our teams continue to transform our products and rapidly innovate for the future, developing 6th generation air dominance technologies within Skunk Works®, demonstrating autonomous capabilities with the X-62A (F-16) and optionally piloted BLACK HAWK®, creating new Joint All-Domain Operating systems with Defense of Guam and AIR 6500 in Australia, establishing small-to-medium satellite capabilities to support proliferated space constellations and advancing hypersonic capabilities.

Finally, we are always in pursuit of new program awards to develop future platforms that enable us to continue to strengthen our national defense and advance deterrence and global security.

Underpinning our ability to execute our strategy is our talent and culture.

For additional information on the F-35 program, see “Status of the F‑35 Program” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

U.S. Air Force, and the VH-92A helicopter for the U.S. Marine One transport mission, Presidential helicopter, of which we made the final aircraft delivery under the program in 2024.

- The Orion Multi-Purpose Crew Vehicle (Orion), a spacecraft for NASA utilizing new technology for human exploration missions beyond low earth orbit.

During 2024, we hired nearly 9,200 employees and we hired 3,900 college hires and interns during the 2023-24 academic year.

The U.S. Government’s power to unilaterally definitize a contract can affect our ability to negotiate mutually agreeable contract terms and, if a contract is unilaterally imposed upon us, it may negatively affect our expected profit and cash flows on a program or impose burdensome terms.

For information regarding the matters discussed above, including current estimates of the amounts that we believe are required for remediation or clean-up to the extent estimable, see [removed: “Critical Accounting Policies - Environmental Matters” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and] “Note 14 – Legal Proceedings, Commitments and Contingencies” included in our Notes to Consolidated Financial Statements, which are incorporated herein by reference.

For the fiscal year ended December 31, [removed: 2024][added: 2025]

The aggregate market value of voting and non-voting common stock held by non-affiliates of the registrant computed by reference to the last sales price of such stock, as of the last business day of the registrant’s most recently completed second fiscal quarter, which was June [removed: 28, 2024,] [added: 27, 2025,] was approximately [removed: $110.8] [added: $106.5] billion.

There were [removed: 235,385,902] [added: 230,080,240] shares of our common stock, $1 par value per share, outstanding as of January [removed: 23, 2025.][added: 26, 2026.]

Portions of Lockheed Martin Corporation’s [removed: 2025] [added: 2026] Definitive Proxy Statement are incorporated by reference into Part III of this Form 10‑K.

The [removed: 2025] [added: 2026] Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

For the Year Ended December 31, [removed: 2024][added: 2025]

| ITEM 1. | | | [removed: [Business](#i2cf70e383d544adc91c1e4046733af99_13)] [added: [Business](#i575d3349cd204377a00f1b80abdad504_13)] | | | [removed: [3](#i2cf70e383d544adc91c1e4046733af99_13)] [added: [3](#i575d3349cd204377a00f1b80abdad504_13)] | | |

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| ITEM 1C. | | | [removed: [Cybersecurity](#i2cf70e383d544adc91c1e4046733af99_22)] [added: [Cybersecurity](#i575d3349cd204377a00f1b80abdad504_22)] | | | [removed: [22](#i2cf70e383d544adc91c1e4046733af99_22)] [added: [23](#i575d3349cd204377a00f1b80abdad504_22)] | | |

| ITEM 2. | | | [removed: [Properties](#i2cf70e383d544adc91c1e4046733af99_25)] [added: [Properties](#i575d3349cd204377a00f1b80abdad504_25)] | | | [removed: [24](#i2cf70e383d544adc91c1e4046733af99_25)] [added: [24](#i575d3349cd204377a00f1b80abdad504_25)] | | |

| ITEM 3. | | | [Legal [removed: Proceedings](#i2cf70e383d544adc91c1e4046733af99_28)] [added: Proceedings](#i575d3349cd204377a00f1b80abdad504_28)] | | | [removed: [24](#i2cf70e383d544adc91c1e4046733af99_28)] [added: [25](#i575d3349cd204377a00f1b80abdad504_28)] | | |

| ITEM 4. | | | [Mine Safety [removed: Disclosures](#i2cf70e383d544adc91c1e4046733af99_31)] [added: Disclosures](#i575d3349cd204377a00f1b80abdad504_31)] | | | [removed: [24](#i2cf70e383d544adc91c1e4046733af99_31)] [added: [25](#i575d3349cd204377a00f1b80abdad504_31)] | | |

| | | | [Information about our Executive [removed: Officers](#i2cf70e383d544adc91c1e4046733af99_34)] [added: Officers](#i575d3349cd204377a00f1b80abdad504_34)] | | | [removed: [25](#i2cf70e383d544adc91c1e4046733af99_34)] [added: [25](#i575d3349cd204377a00f1b80abdad504_34)] | | |

| ITEM 5. | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#i2cf70e383d544adc91c1e4046733af99_40)] [added: Securities](#i575d3349cd204377a00f1b80abdad504_40)] | | | [removed: [27](#i2cf70e383d544adc91c1e4046733af99_40)] [added: [27](#i575d3349cd204377a00f1b80abdad504_40)] | | |

| ITEM 6. | | | [removed: [\[Reserved\]](#i2cf70e383d544adc91c1e4046733af99_43)] [added: [\[Reserved\]](#i575d3349cd204377a00f1b80abdad504_43)] | | | [removed: [28](#i2cf70e383d544adc91c1e4046733af99_43)] [added: [28](#i575d3349cd204377a00f1b80abdad504_43)] | | |

| ITEM 7. | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i2cf70e383d544adc91c1e4046733af99_46)] [added: Operations](#i575d3349cd204377a00f1b80abdad504_46)] | | | [removed: [29](#i2cf70e383d544adc91c1e4046733af99_46)] [added: [29](#i575d3349cd204377a00f1b80abdad504_46)] | | |

| ITEM 7A. | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#i2cf70e383d544adc91c1e4046733af99_67)] [added: Risk](#i575d3349cd204377a00f1b80abdad504_67)] | | | [removed: [52](#i2cf70e383d544adc91c1e4046733af99_67)] [added: [49](#i575d3349cd204377a00f1b80abdad504_67)] | | |

| ITEM 8. | | | [Financial Statements and Supplementary [removed: Data](#i2cf70e383d544adc91c1e4046733af99_70)] [added: Data](#i575d3349cd204377a00f1b80abdad504_70)] | | | [removed: [53](#i2cf70e383d544adc91c1e4046733af99_70)] [added: [50](#i575d3349cd204377a00f1b80abdad504_70)] | | |

| ITEM 9. | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#i2cf70e383d544adc91c1e4046733af99_139)] [added: Disclosure](#i575d3349cd204377a00f1b80abdad504_139)] | | | [removed: [98](#i2cf70e383d544adc91c1e4046733af99_139)] [added: [93](#i575d3349cd204377a00f1b80abdad504_139)] | | |

| ITEM 9A. | | | [Controls and [removed: Procedures](#i2cf70e383d544adc91c1e4046733af99_142)] [added: Procedures](#i575d3349cd204377a00f1b80abdad504_142)] | | | [removed: [98](#i2cf70e383d544adc91c1e4046733af99_142)] [added: [93](#i575d3349cd204377a00f1b80abdad504_142)] | | |

| ITEM 9B. | | | [Other [removed: Information](#i2cf70e383d544adc91c1e4046733af99_148)] [added: Information](#i575d3349cd204377a00f1b80abdad504_148)] | | | [removed: [100](#i2cf70e383d544adc91c1e4046733af99_148)] [added: [95](#i575d3349cd204377a00f1b80abdad504_148)] | | |

| ITEM 9C. | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#i2cf70e383d544adc91c1e4046733af99_151)] [added: Inspections](#i575d3349cd204377a00f1b80abdad504_151)] | | | [removed: [100](#i2cf70e383d544adc91c1e4046733af99_151)] [added: [95](#i575d3349cd204377a00f1b80abdad504_151)] | | |

| ITEM 10. | | | [Directors, Executive Officers and Corporate [removed: Governance](#i2cf70e383d544adc91c1e4046733af99_157)] [added: Governance](#i575d3349cd204377a00f1b80abdad504_157)] | | | [removed: [100](#i2cf70e383d544adc91c1e4046733af99_157)] [added: [95](#i575d3349cd204377a00f1b80abdad504_157)] | | |

| ITEM 11. | | | [Executive [removed: Compensation](#i2cf70e383d544adc91c1e4046733af99_160)] [added: Compensation](#i575d3349cd204377a00f1b80abdad504_160)] | | | [removed: [100](#i2cf70e383d544adc91c1e4046733af99_160)] [added: [95](#i575d3349cd204377a00f1b80abdad504_160)] | | |

| ITEM 12. | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i2cf70e383d544adc91c1e4046733af99_163)] [added: Matters](#i575d3349cd204377a00f1b80abdad504_163)] | | | [removed: [101](#i2cf70e383d544adc91c1e4046733af99_163)] [added: [96](#i575d3349cd204377a00f1b80abdad504_163)] | | |

| ITEM 13. | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i2cf70e383d544adc91c1e4046733af99_166)] [added: Independence](#i575d3349cd204377a00f1b80abdad504_166)] | | | [removed: [101](#i2cf70e383d544adc91c1e4046733af99_166)] [added: [96](#i575d3349cd204377a00f1b80abdad504_166)] | | |

| ITEM 14. | | | [Principal Accounting Fees and [removed: Services](#i2cf70e383d544adc91c1e4046733af99_169)] [added: Services](#i575d3349cd204377a00f1b80abdad504_169)] | | | [removed: [101](#i2cf70e383d544adc91c1e4046733af99_169)] [added: [96](#i575d3349cd204377a00f1b80abdad504_169)] | | |

| ITEM 15. | | | [Exhibits and Financial Statement [removed: Schedules](#i2cf70e383d544adc91c1e4046733af99_175)] [added: Schedules](#i575d3349cd204377a00f1b80abdad504_175)] | | | [removed: [102](#i2cf70e383d544adc91c1e4046733af99_175)] [added: [97](#i575d3349cd204377a00f1b80abdad504_175)] | | |

| ITEM 16. | | | [Form 10-K [removed: Summary](#i2cf70e383d544adc91c1e4046733af99_178)] [added: Summary](#i575d3349cd204377a00f1b80abdad504_178)] | | | [removed: [105](#i2cf70e383d544adc91c1e4046733af99_178)] [added: [101](#i575d3349cd204377a00f1b80abdad504_178)] | | |

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

| [SIGNATURES](#i575d3349cd204377a00f1b80abdad504_181) | | | | | | [102](#i575d3349cd204377a00f1b80abdad504_181) | | |

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

| [SIGNATURES](#i2cf70e383d544adc91c1e4046733af99_181) | | | | | | [106](#i2cf70e383d544adc91c1e4046733af99_181) | | |

As a defense contractor, we must comply with extensive regulations, including requirements imposed by the [removed: Defense Federal Acquisition Regulation Supplement (DFARS)] [added: DFARS] related to adequately safeguarding controlled unclassified information (CUI) and reporting cybersecurity incidents to the [removed: DoD.][added: DoW.]

We have implemented cybersecurity policies and frameworks based on industry and governmental [added: standards to align closely with DoW requirements, instructions and guidance.]

Moreover, we continue to work with the [removed: DoD] [added: DoW] on assessing cybersecurity risk and on policies and practices aimed at mitigating these risks.

For example, we have worked in collaboration with the other members of the defense industrial base to support [removed: DoD’s] [added: DoW’s] development of the Cybersecurity Maturity Model Certification (CMMC) program, [removed: DoD’s] [added: DoW’s] program to ensure members of the defense industrial base meet cybersecurity requirements for handling CUI and federal contract information.

In addition to following [removed: DoD] [added: DoW] guidance and implementing pre-existing third party frameworks, we have developed our own practices and frameworks, which we believe enhance our ability to identify and manage cybersecurity risks.

Senior leadership, including our Chief Information Security Officer (CISO), [removed: regularly briefs] [added: report to] the Board of Directors on our cybersecurity and information security posture [added: at least annually] and the Board of Directors is apprised of cybersecurity incidents deemed to have a moderate or higher business impact, even if immaterial to us.

[added: While Lockheed Martin maintains cybersecurity] insurance, the costs related to cybersecurity threats or disruptions may not be fully insured.

In November 2025, we submitted our initial CMMC certification as required by the program.

The effectiveness of our security controls are validated by external third parties, including an independent audit agency to maintain our ISO 27001 certification.

Whether through independent audits or consulting on best practices, we continuously evaluate both the design and operational effectiveness of security controls.

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

standards to align closely with DoD requirements, instructions and guidance.

We believe we are well positioned to meet the requirements of the CMMC and are preparing for certification.

Third parties also play a role in our cybersecurity.

We engage third-party services to conduct evaluations of our security controls, whether through penetration testing, independent audits or consulting on best practices to address new challenges.

These evaluations include testing both the design and operational effectiveness of security controls.

While Lockheed Martin maintains cybersecurity

At December 31, [removed: 2024,] [added: 2025,] we owned or leased building space (including offices, manufacturing plants, warehouses, service centers, laboratories and other facilities) at [removed: 356] [added: 333] locations primarily in the U.S. Additionally, we manage or occupy 9 government-owned facilities under lease and other arrangements.

At December 31, [removed: 2024,] [added: 2025,] we had significant operations in the following locations:

- Missiles and Fire Control \- [added: Troy, Alabama;] Camden, Arkansas; Ocala and Orlando, Florida; Lexington, Kentucky; and Grand Prairie, Texas

The following is a summary of our square feet of floor space owned, leased, or utilized by business segment at December 31, [removed: 2024] [added: 2025] (in millions):

| | | | | | | Owned | | | | | | | | | Leased | | | | | | | | | Government- Owned | | | | | | | | | Total | | | [removed: | | |]

| Aeronautics | | | | | | 5.1 | | | | | | | | | [removed: 3.2] [added: 2.8] | | | | | | | | | 14.7 | | | | | | | | | [removed: 23.0 | | |] [added: 22.6] | | |

| Missiles and Fire Control | | | | | | 7.8 | | | | | | | | | [removed: 2.5] [added: 2.4] | | | | | | | | | 2.0 | | | | | | | | | [removed: 12.3 | | |] [added: 12.2] | | |

| Rotary and Mission Systems | | | | | | [removed: 10.7] [added: 10.5] | | | | | | | | | [removed: 4.9] [added: 4.7] | | | | | | | | | 0.2 | | | | | | | | | [removed: 15.8 | | |] [added: 15.4] | | |

| Space | | | | | | 9.5 | | | | | | | | | [removed: 3.2] [added: 3.3] | | | | | | | | | 0.1 | | | | | | | | | [removed: 12.8 | | |] [added: 12.9] | | |

| Corporate activities | | | | | | 2.5 | | | | | | | | | 0.9 | | | | | | | | | — | | | | | | | | | 3.4 | | | [removed: | | |]

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Total | | | | | | 35.4 | | | | | | | | | 14.1 | | | | | | | | | 17.0 | | | | | | | | | 66.5 | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Total | | | | | | 35.6 | | | | | | | | | 14.7 | | | | | | | | | 17.0 | | | | | | | | | 67.3 | | | | | |

Our executive officers as of January [removed: 28, 2025] [added: 29, 2026] are listed below, with their ages on that date, positions and offices currently held, and principal occupation and business experience during at least the last five years.

Cahill (age [removed: 59),] [added: 60),] President – Missiles and Fire Control

Hill (age [removed: 60),] [added: 61),] President – Rotary and Mission Systems

Lightfoot, Jr. (age [removed: 61),] [added: 62),] President – Space

[removed: Jesus Malave] [added: Scott] (age [removed: 56),] [added: 48),] Chief Financial Officer

Mr. [removed: Malave] [added: Scott] has served as Chief Financial Officer since [removed: January 2022.][added: April 2025.]

Prior to joining Lockheed Martin Corporation [removed: in 2022, Mr. Malave] [added: he] served as [added: the] Senior Vice President and Chief [removed: Financial] [added: Legal] Officer of [removed: L3Harris Technologies, Inc. (L3Harris)] [added: Carrier Corporation] from [removed: June 2019 to] January [removed: 2022.][added: 2020 until January 2025.]

O’Connor (age [removed: 57),] [added: 58),] Senior Vice President, General Counsel and Corporate Secretary

Edward Paul, III (age [removed: 49),] [added: 50),] Vice President and Controller

Ricciardone (age [removed: 49),] [added: 50),] Vice President, Treasurer and Investor Relations

St. John (age [removed: 58),] [added: 59),] Chief Operating Officer

Taiclet (age [removed: 64),] [added: 65),] Chairman, President and Chief Executive Officer

Ulmer (age [removed: 60),] [added: 61),] President – Aeronautics

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

Evan T.

He previously served as Vice President and Chief Financial Officer of the Missiles and Fire Control (MFC) business segment from January 2024 to April 2025.

Prior to that, Mr. Scott was Vice President and Treasurer from June 2022 through December 2023, and Vice President, Finance and Business Operations of the Space business segment from March 2019 to August 2021.

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

Effective February 21, 2024, the titles of our business segment executive officers were changed from Executive Vice President to President, with no changes to their duties or responsibilities.

Prior to joining Lockheed Martin Corporation he served as the Senior Vice President and Chief Legal Officer of Carrier Corporation from January 2020 until January 2025, prior to which he served as Chief Legal Officer of Point72 Asset Management from June 2015 until January 2020.

Previously, he was Chairman, President and CEO of American Tower Corporation from February 2004 to March 2020; and Executive Chairman from March 2020 to May 2020.

At January [removed: 23, 2025,] [added: 26, 2026,] we had [removed: 21,751] [added: 20,822] holders of record of our common stock, par value $1 per share.

The following graph compares the total return on a cumulative basis through December 31, [removed: 2024,] [added: 2025,] assuming reinvestment of dividends, of $100 invested in Lockheed Martin common stock as of market close on December 31, [removed: 2019] [added: 2020] to the Standard and Poor’s (S&P) 500 Index and the S&P Aerospace & Defense Index.

[removed: ][added: ]

There were no sales of unregistered equity securities during the quarter ended December 31, [removed: 2024.][added: 2025.]

The following table provides information about our repurchases of our common stock that is registered pursuant to Section 12 of the Securities Exchange Act of 1934 during the quarter ended December 31, [removed: 2024.][added: 2025.]

For example, [removed: November 25, 2024] [added: September 29, 2025] was the first day of our [removed: December 2024] [added: October 2025] fiscal month.

In October [removed: 2024,] [added: 2025,] the Board of Directors authorized an increase to the program by [removed: $3.0] [added: $2.0] billion.

The total remaining authorization for future common share repurchases under our share repurchase program was [removed: $9.3] [added: $8.3] billion as of December 31, [removed: 2024.][added: 2025.]

(c)During the fourth quarter of [removed: 2024,] [added: 2025,] the total number of shares purchased included [removed: 9,609] [added: 10,294] shares that were transferred to us by employees in satisfaction of tax withholding obligations associated with the vesting of restricted stock units.

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

| September 29, 2025 – October 26, 2025 (c) | | | | | | 82,681 | | | | | | $ | 488.29 | | | | | 81,913 | | | | | | $ | 9,033 | |

| October 27, 2025 – November 30, 2025 (c) | | | | | | 62,123 | | | | | | $ | 488.43 | | | | | 61,415 | | | | | | $ | 9,003 | |

| December 1, 2025 – December 31, 2025 (c) | | | | | | 1,441,683 | | | | | | $ | 474.26 | | | | | 1,432,865 | | | | | | $ | 8,324 | |

| Total (c) | | | | | | 1,586,487 | | | | | | $ | 475.55 | | | | | 1,576,193 | | | | | | | | |

The program does not have an expiration date, and may be amended or terminated by the Board of Directors at any time.

| September 30, 2024 – October 27, 2024 (c) | | | | | | 93,965 | | | | | | $ | 566.77 | | | | | 93,082 | | | | | | $ | 10,271 | |

| October 28, 2024 – November 24, 2024 (c) | | | | | | 990,487 | | | | | | $ | 546.85 | | | | | 989,937 | | | | | | $ | 9,729 | |

| November 25, 2024 – December 31, 2024 (c) | | | | | | 795,125 | | | | | | $ | 515.71 | | | | | 786,949 | | | | | | $ | 9,323 | |

| Total (c) | | | | | | 1,879,577 | | | | | | $ | 534.67 | | | | | 1,869,968 | | | | | | | | |

The program does not have an expiration date.

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

We have audited the accompanying consolidated balance sheets of Lockheed Martin Corporation (the Corporation) as of December 31, [removed: 2024] [added: 2025] and [removed: 2023,] [added: 2024,] the related consolidated statements of earnings, comprehensive income, cash flows and equity for each of the three years in the period ended December 31, [removed: 2024,] [added: 2025,] and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation at December 31, [removed: 2024] [added: 2025] and [removed: 2023,] [added: 2024,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2024,] [added: 2025,] in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Corporation’s internal control over financial reporting as of December 31, [removed: 2024,] [added: 2025,] based on criteria established in Internal [removed: Control-Integrated] [added: Control - Integrated] Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January [removed: 28, 2025] [added: 29, 2026] expressed an unqualified opinion thereon.

Critical Audit [removed: Matters][added: Matter]

The critical audit [removed: matters] [added: matter] communicated below [removed: are matters] [added: is a matter] arising from the current period audit of the financial statements that [removed: were] [added: was] communicated or required to be communicated to the audit committee and that: (1) [removed: relate] [added: relates] to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of [added: the] critical audit [removed: matters] [added: matter] does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit [removed: matters] [added: matter] below, providing [added: a] separate [removed: opinions] [added: opinion] on the critical audit [removed: matters] [added: matter] or on the [removed: accounts] [added: account] or [removed: disclosures] [added: disclosure] to which [removed: they relate.][added: it relates.]

| *How We Addressed the Matter in Our Audit* | | | | | | We obtained an understanding, evaluated the design and tested the operating effectiveness of relevant internal controls over the Corporation’s revenue recognition process. For example, we tested internal controls over management’s review of the [removed: estimate-at-completion analyses] [added: estimates used to recognize revenue] and [added: determine] the [added: loss position on certain contracts as well as the] significant assumptions underlying the estimated [removed: contract value and estimated] total costs to complete. We also tested internal controls that management executes which are designed to validate the data [removed: used] in the [removed: estimate-at-completion analyses] [added: estimates used to recognize revenue] was complete and accurate. To test the accuracy of the Corporation’s [removed: estimate-at-completion analyses,] [added: estimates to recognize revenue and determine the loss position for certain contracts,] our audit procedures included, among others, [removed: comparing estimates of labor costs, subcontractor costs,] [added: evaluating the appropriateness] and [removed: materials to historical results] [added: consistency] of [removed: similar contracts,] [added: management’s methods used in developing its cost estimates,] and [removed: agreeing] [added: inspecting and evaluating customer correspondence for consistency with management’s estimates. We assessed] the [added: timeline of] key [removed: terms] [added: events and knowledge points that led] to [removed: contract documentation] [added: changes in these cost estimates] and [removed: management’s] [added: observed the project work site to evaluate tangible or physical progress of the project against assumptions used by management in developing its cost and schedule] estimates. [removed: We also] [added: Additionally, we inquired of those directly involved with the program to evaluate project status and challenges which may affect total estimated costs. Further, we] performed sensitivity analyses over [removed: the] [added: these] significant assumptions to evaluate the change in [removed: the profit booking rates] [added: total cost estimates] resulting from changes in the assumptions. | | |

[removed: January 28, 2025][added: | | | | | | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| | | | | | | 2024 | | | | | | [added: | | | | | |] 2023 | | | | | | [removed: 2022] | | |

| [removed: Net sales] [added: Sales] | | | | | | | | | | | | | | | | | | | | |

| Products | | | | | | $ | [removed: 59,277] [added: 62,654] | | | | | $ | [removed: 56,265] [added: 59,277] | | | | | $ | [removed: 55,466] [added: 56,265] | |

| Services | | | | | | [removed: 11,766] [added: 12,394] | | | | | | [removed: 11,306] [added: 11,766] | | | | | | [removed: 10,518] [added: 11,306] | | |

| Total [removed: net] sales | | | | | | [removed: 71,043] [added: 75,048] | | | | | | [removed: 67,571] [added: 71,043] | | | | | | [removed: 65,984] [added: 67,571] | | |

| [removed: Cost of sales] [added: Sales] | | | | | | | | | | | | | | | | | | | | |

| Products | | | | | | [removed: (54,852)] [added: (57,020)] | | | | | | [removed: (50,206)] [added: (54,852)] | | | | | | [removed: (49,357)] [added: (50,206)] | | |

| Services | | | | | | [removed: (10,217)] [added: (11,339)] | | | | | | [removed: (10,027)] [added: (10,217)] | | | | | | [removed: (9,252)] [added: (10,027)] | | |

| Impairment and [removed: severance] [added: other] charges | | | | | | [removed: (87)] [added: (66)] | | | | | | [removed: (92)] [added: (87)] | | | | | | [removed: (100)] [added: (92)] | | |

| Other unallocated, net | | | | | | [removed: 1,043] [added: 996] | | | | | | [removed: 1,233] [added: 1,043] | | | | | | [removed: 1,012] [added: 1,233] | | |

| Gross profit | | | | | | [removed: 6,930] [added: 7,619] | | | | | | [removed: 8,479] [added: 6,930] | | | | | | [removed: 8,287] [added: 8,479] | | |

| Other income, net | | | | | | [removed: 83] [added: 112] | | | | | | [removed: 28] [added: 83] | | | | | | [removed: 61] [added: 28] | | |

| Operating profit | | | | | | [removed: 7,013] [added: 7,731] | | | | | | [removed: 8,507] [added: 7,013] | | | | | | [removed: 8,348] [added: 8,507] | | |

| Interest expense | | | | | | [removed: (1,036)] [added: (1,118)] | | | | | | [removed: (916)] [added: (1,036)] | | | | | | [removed: (623)] [added: (916)] | | |

| Non-service FAS pension [removed: income] (expense) [added: income] | | | | | | [removed: 62] [added: (874)] | | | | | | [removed: 443] [added: 62] | | | | | | [removed: (971)] [added: 443] | | |

| Other non-operating [removed: income (expense),] [added: income,] net | | | | | | [removed: 181] [added: 183] | | | | | | [removed: 64] [added: 181] | | | | | | [removed: (74)] [added: 64] | | |

| Earnings before income taxes | | | | | | [removed: 6,220] [added: 5,922] | | | | | | [removed: 8,098] [added: 6,220] | | | | | | [removed: 6,680] [added: 8,098] | | |

| Income tax expense | | | | | | [removed: (884)] [added: (905)] | | | | | | [removed: (1,178)] [added: (884)] | | | | | | [removed: (948)] [added: (1,178)] | | |

| Net earnings | | | | | | $ | [removed: 5,336] [added: 5,017] | | | | | $ | [removed: 6,920] [added: 5,336] | | | | | $ | [removed: 5,732] [added: 6,920] | |

| Basic | | | | | | $ | [removed: 22.39] [added: 21.56] | | | | | $ | [removed: 27.65] [added: 22.39] | | | | | $ | [removed: 21.74] [added: 27.65] | |

| Diluted | | | | | | $ | [removed: 22.31] [added: 21.49] | | | | | $ | [removed: 27.55] [added: 22.31] | | | | | $ | [removed: 21.66] [added: 27.55] | |

| | | | | | | [removed: 2024] [added: 2025] | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | |

| Net earnings | | | | | | $ | [removed: 5,336] [added: 5,017] | | | | | $ | [removed: 6,920] [added: 5,336] | | | | | $ | [removed: 5,732] [added: 6,920] | |

| Net actuarial gain (loss) recognized due to plan remeasurements, net of tax of [removed: $96] [added: $28] million in [removed: 2024, $181] [added: 2025, $96] million in [removed: 2023] [added: 2024] and [removed: $518] [added: $181] million in [removed: 2022] [added: 2023] | | | | | | [removed: 340] [added: 99] | | | | | | [removed: (689)] [added: 340] | | | | | | [removed: 1,873] [added: (689)] | | |

| Amortization of actuarial losses and prior service credits, net of tax of [removed: $21] [added: $69] million in [removed: 2024, $40] [added: 2025, $21] million in [removed: 2023] [added: 2024] and [removed: $18] [added: $40] million in [removed: 2022] [added: 2023] | | | | | | [removed: 76] [added: 257] | | | | | | [removed: (149)] [added: 76] | | | | | | [removed: 69] [added: (149)] | | |

| Pension settlement charge, net of tax of [removed: $314] [added: $102] million | | | | | | [removed: —] [added: 377] | | | | | | — | | | | | | [removed: 1,156] [added: —] | | |

| Other, [removed: net,] net of tax of [removed: $4] [added: $18] million in [removed: 2024, $6] [added: 2025, $4] million in [removed: 2023] [added: 2024] and [removed: $2] [added: $6] million in [removed: 2022] [added: 2023] | | | | | | [removed: (65)] [added: 177] | | | | | | [removed: 58] [added: (65)] | | | | | | [removed: (115)] [added: 58] | | |

| Other comprehensive income, net of tax | | | [added: —] | | | [removed: 351] [added: —] | | | | | | [removed: (780)] [added: —] | | | [added: 351] | | | [removed: 2,983] | | | [added: 351 | | | | | | | | |]

| Comprehensive income | | | | | | $ | [removed: 5,687] [added: 5,927] | | | | | $ | [removed: 6,140] [added: 5,687] | | | | | $ | [removed: 8,715] [added: 6,140] | |

| | | | | | | [added: 2025 | | | | | |] 2024 | | | | | | 2023 | | |

| Cash and cash equivalents | | | | | | $ | [removed: 2,483] [added: 4,121] | | | | | $ | [removed: 1,442] [added: 2,483] | |

| Receivables, net | | | | | | [removed: 2,351] [added: 3,901] | | | | | | [removed: 2,132] [added: 2,351] | | |

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| | | | | | | Cost Estimates for Select Fixed Price Contracts | | |

| *Description of the Matter* | | | | | | As more fully described in Note 1 to the consolidated financial statements, the Corporation generates the majority of its sales from long-term customer contracts whereby substantially all of the Corporation’s revenue is recognized over time using the percentage-of-completion cost-to-cost measure of progress. The percentage-of-completion cost-to-cost method requires management to make significant estimates and assumptions at the outset and throughout the contract to estimate total costs at completion. There are risks to the achievement of the technical, schedule and cost aspects of the Corporation’s contracts, and the assessment of the effects of those risks on the estimates of total costs to complete for select fixed price contracts is highly subjective. Auditing the Corporation's measurement of the estimated costs to complete on certain contracts involved especially challenging judgment due to the complexity of the technical, schedule and cost aspects of the program and the classified nature of the contracts. These assumptions require a high degree of auditor judgment when performing audit procedures and evaluating the results of those procedures. | | |

| | | | | | | | | |

| | | | | | | | | |

January 29, 2026

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| Operating costs and expenses | | | | | | | | | | | | | | | | | | | | |

| Total operating costs and expenses | | | | | | (67,429) | | | | | | (64,113) | | | | | | (59,092) | | |

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

| Retirement benefits | | | | | | | | | | | | | | | | | | | | |

[Table of Contents](#i575d3349cd204377a00f1b80abdad504_7)[](#i575d3349cd204377a00f1b80abdad504_7)

| | | | | | | 2025 | | | | | | 2024 | | |

| Capitalized software | | | | | | 2,417 | | | | | | 1,866 | | |

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| Reach-forward losses on select programs | | | | | | 1,615 | | | | | | 1,965 | | | | | | 45 | | |

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| Repurchases of common stock | | | (7) | | | (585) | | | | | | (2,408) | | | — | | | | | | (3,000) | | | | | | | | |

| Balance at December 31, 2025 | | | $ | 229 | | $ | — | | | | | $ | 14,034 | | $ | (7,542) | | | | | $ | 6,721 | | | | | | | |

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Organization – We are a global aerospace and defense technology company that builds and sustains the solutions America and its allies need to deter conflict and advance national security and scientific exploration objectives.

Our four business areas – Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space – work as one company offering integrated solutions, at scale, across all warfighting domains.

Our defense, space, intelligence, homeland security, information technology, and cybersecurity capabilities serve U.S. and international customers in defense, civil and commercial applications.

Our principal customers are agencies of the U.S. Government and allies.

See “Note 3 – Information on Business Segments” for more details on discussions of our business areas.

During the second quarter of 2025, we paid $360 million, in cash, for the acquisition of Amentum’s Rapid Solutions business (Rapid Solutions).

The acquisition of Rapid Solutions is expected to enhance our Space business segment′s capabilities, particularly in radar and payload technology, and support our customers′ evolving needs for domain awareness and real- time missions.

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The following table presents the effect of profit booking rate adjustments on our financial results (in millions, except per share data):

| | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Sales | | | | | | $ | 954 | | | | | $ | 1,173 | | | | | $ | 1,559 | | | | |

| Segment operating profit (loss) | | | | | | 75 | | | | | | (180) | | | | | | 1,585 | | | | | |

| % of segment operating profit (loss) | | | | | | 1 | | % | | | | (3) | | % | | | | 21 | | % | | | |

| Net earnings (loss) | | | | | | 59 | | | | | | (142) | | | | | | 1,252 | | | | | |

| Diluted earnings (loss) per share | | | | | | 0.25 | | | | | | (0.59) | | | | | | 4.98 | | | | | |

During the year ended December 31, 2025, we recorded reach-forward losses of $950 million on an ongoing classified program at our Aeronautics business segment, $570 million on Canadian Maritime Helicopter Program (CMHP) and $95 million on Türkish Utility Helicopter Program (TUHP) at our RMS business segment (see discussions that follows within this footnote), and $140 million of unfavorable profit adjustments on C-130 program at our Aeronautics business segment.

In addition to these losses and unfavorable profit adjustments, we also recorded $130 million of favorable adjustments upon completion on certain commercial civil space programs at Space, and $90 million favorable adjustments upon completion of a classified program at Aeronautics.

on the Audited Consolidated Financial Statements

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | Revenue recognition based on the percentage of completion method | | |

| *Description of the Matter* | | | | | | For the year ended December 31, 2024, the Corporation recorded net sales of $71.0 billion. As more fully described in Note 1 to the consolidated financial statements, the Corporation generates the majority of its net sales from long-term contracts with its customers whereby substantially all of the Corporation’s revenue is recognized over time using the percentage-of-completion cost-to-cost measure of progress. Under the percentage-of-completion cost-to-cost measure of progress, the Corporation measures progress towards completion based on the ratio of costs incurred to date to the estimated total costs to complete the performance obligation(s) (referred to as the estimate-at-completion analysis). The Corporation estimates profit on these contracts as the difference between total estimated revenues and total estimated cost at completion. The percentage-of-completion cost-to-cost method requires management to make significant estimates and assumptions to estimate contract sales and costs associated with its contracts with customers. At the outset of a long-term contract, the Corporation identifies risks to the achievement of the technical, schedule and cost aspects of the contract. Throughout the contract life cycle, the Corporation monitors and assesses the effects of those risks on its estimates of sales and total costs to complete the contract. Profit booking rates may increase during the performance of the contract if the Corporation successfully retires risks surrounding the technical, schedule and cost aspects of the contract, which would decrease the estimated total costs to complete the contract. Conversely, the profit booking rates may decrease if the estimated total costs to complete the contract increase. Changes to the profit booking rates resulting from changes in estimates could have a material effect on the Corporation’s results of operations. Auditing the Corporation’s estimate-at-completion analyses used in its revenue recognition process was complex due to the judgment involved in evaluating the significant estimates and assumptions made by management in the initial development and subsequent updates to the Corporation’s estimate-at-completion analyses. The estimate-at-completion analyses of each contract consider risks surrounding the Corporation’s ability to achieve the technical, schedule and cost aspects of the contract. | | |

| | | | | | | Defined Benefit Pension Plan Obligation | | |

| *Description of the Matter* | | | | | | At December 31, 2024, the Corporation’s aggregate obligation for its qualified defined benefit pension plans was $27.2 billion and exceeded the gross fair value of the related plan assets of $22.4 billion, resulting in a net unfunded qualified defined benefit pension obligation of $4.8 billion. As explained in Note 11 of the consolidated financial statements, the Corporation remeasures the qualified defined benefit pension assets and obligations at the end of each year or more frequently upon the occurrence of certain events. The amounts are measured using actuarial valuations, which depend on key assumptions such as the discount rate. Auditing the defined benefit pension obligation was complex and required the involvement of specialists as a result of the judgmental nature of the actuarial assumptions such as the discount rate used in the measurement process. The discount rate assumption has a significant effect on the measurement of the projected benefit obligation. | | |

| *How We Addressed the Matter in Our Audit* | | | | | | We obtained an understanding, evaluated the design and tested the operating effectiveness of relevant internal controls over management’s measurement and valuation of the defined benefit pension obligation calculations. For example, we tested the internal controls over management’s review of the defined benefit pension obligation calculations, the significant actuarial assumptions and the data inputs provided to the actuaries. To test the defined benefit pension obligation, our audit procedures included, among others, evaluating the methodology used, the significant actuarial assumptions described above and the underlying data used by the Corporation. We compared the actuarial assumptions used by management to historical trends and evaluated the change in the defined benefit pension obligation from prior year due to the change in service cost, interest cost, benefit payments, settlements, actuarial gains and losses, longevity assumptions and plan amendments. In addition, we involved our actuarial specialists to assist in evaluating management’s methodology for determining the discount rate that considers the maturity and duration of the benefit payments and is used to measure the defined benefit pension obligation. As part of this assessment, we compared the projected cash flows to the prior year and compared the current year benefits paid to the prior year projected cash flows. Lastly, we also tested the completeness and accuracy of the underlying data, including the participant data provided to the Corporation’s actuarial specialists. | | |

| | | | | | | | | | | | | | | | | | | | | |

| Total cost of sales | | | | | | (64,113) | | | | | | (59,092) | | | | | | (57,697) | | |

| | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | |

| Postretirement benefit plans | | | | | | | | | | | | | | | | | | | | |

| Classified programs losses | | | | | | 1,965 | | | | | | 45 | | | | | | — | | |

| Balance at December 31, 2021 | | | $ | 271 | | $ | 94 | | | | | $ | 21,600 | | $ | (11,006) | | | | | $ | 10,959 | | | | | | | |

| Repurchases of common stock | | | (18) | | | (503) | | | | | | (7,379) | | | — | | | | | | (7,900) | | | | | | | | |

Organization – We are a global aerospace and defense company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

We also provide a broad range of management, engineering, technical, scientific, logistics, system integration and cybersecurity services.

We serve both U.S. and international customers with products and services that have defense, civil and commercial applications, with our principal customers being agencies of the U.S. Government.

As described in “Note 3 – Information on Business Segments”, we operate in four business segments: Aeronautics, MFC, RMS and Space.

On October 30, 2024, we closed our acquisition of Terran Orbital Corporation (Terran Orbital) for a purchase consideration of $314 million.

We accounted for this acquisition as a “step acquisition” (as defined in U.S. GAAP) and accordingly, $83 million of our previously held investments in Terran Orbital were included as part of the purchase consideration.

The remaining purchase price of $231 million was paid with cash on hand (net of cash acquired).

Terran Orbital became a wholly-owned subsidiary and operates within our Space business segment.

Our consolidated net profit booking rate adjustments increased net sales by $1.2 billion in 2024, $1.6 billion in 2023, and $2.0 billion in 2022.

These adjustments decreased segment operating profit by approximately $180 million ($142 million, or $0.59 per share, after-tax) in 2024 and increased segment operating profit by approximately $1.6 billion ($1.3 billion, or $4.98 per share, after-tax) in 2023 and $1.8 billion ($1.4 billion, or $5.40 per share, after-tax) in 2022.

During 2024, we recognized $555 million of losses on this program, including $410 million recognized in the fourth quarter of 2024.

During the fourth quarter of 2024, we again performed a comprehensive review of the program requirements, technical complexities, schedule, risks, and risk mitigation actions as a result of performance trends experienced in 2024 and in contemplation of near-

term program milestones.

Based on that review, we identified higher projected costs in engineering and integration activities that are necessary to achieve those forthcoming milestones.

The last of the 28 CH-148 aircraft is scheduled to be delivered in 2025.

The program has experienced performance issues, including delays in the final aircraft deliveries from the original contract requirement, and the Royal Canadian Air Force’s flight hours have been significantly less than originally anticipated, which has impacted program revenues and the recovery of our costs under this program.

We have incurred significant costs and recognized the related sales, of which about $955 million are currently included in contract assets on the balance sheet which could become at risk for future recovery.

Such assets are recovered based on future flight hours, which are not entirely within our control and are dependent upon aircraft availability and performance and the availability of Canadian government resources.

This modification mitigates but does not eliminate the risk related to future sales and recovery of our costs.

Under the contract terms as modified, future sales and recovery of costs are dependent upon the Royal Canadian Air Force’s flight hours and program costs and performance.

As of December 31, 2024, cumulative losses remained at approximately $100 million.

We partially stopped work on TUHP effective October 5, 2024.

We are currently in discussions with our customer regarding the path forward for the program in light of the continued impact of the sanctions on our ability to perform under the TUHP contracts and our decision to partially stop work.

The TUHP contracts may be negotiated to be restructured or terminated, either in whole or in part, and as a result, we could be at risk of recording significant reach-forward losses in future periods.

Additionally, our customer and subcontractor have asserted that we do not have the contractual right to stop work.

We performed an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, [removed: 2024.][added: 2025.]

Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, [removed: 2024.][added: 2025.]

Our management conducted an assessment of the effectiveness of our internal control over financial reporting as of December 31, [removed: 2024.][added: 2025.]

Based on this assessment, management concluded that our internal control over financial reporting was effective as of December 31, [removed: 2024.][added: 2025.]

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d‑15(d) of the Exchange Act that occurred during the quarter ended December 31, [removed: 2024] [added: 2025] that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We have audited Lockheed Martin Corporation’s internal control over financial reporting as of December 31, [removed: 2024,] [added: 2025,] based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, Lockheed Martin Corporation (the Corporation) maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2024,] [added: 2025,] based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Corporation as of December 31, [removed: 2024] [added: 2025] and [removed: 2023,] [added: 2024,] the related consolidated statements of earnings, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, [removed: 2024,] [added: 2025,] and the related notes and our report dated January [removed: 28, 2025] [added: 29, 2026] expressed an unqualified opinion thereon.

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January 29, 2026

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Regarding Internal Control Over Financial Reporting

January 28, 2025

None of our directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or adopted or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the quarter ended December 31, [removed: 2024.][added: 2025.]

The information concerning directors required by Item 401 of Regulation S-K is included under the section titled “Director Nominees” in our definitive Proxy Statement to be filed pursuant to Regulation 14A within 120 days after the end of the fiscal year to which this report relates (the [removed: 2025] [added: 2026] Proxy Statement), and that information is incorporated by reference in this Annual Report on Form 10-K (Form 10-K).

The information required by Items 405, 407(d)(4) and 407(d)(5) of Regulation S-K is included in the sections titled “Delinquent Section 16(a) Reports”, “Corporate Governance” and “Audit Committee Report” in the [removed: 2025] [added: 2026] Proxy Statement, and that information is incorporated by reference in this Form 10-K.

The information required by Item 402 of Regulation S-K is included in the sections titled “Executive Compensation” and “Director Compensation” in the [removed: 2025] [added: 2026] Proxy Statement and that information is incorporated by reference in this Form 10-K.

The information required by Item 407(e)(5) of Regulation S-K is included under the caption “Compensation Committee Report” in the [removed: 2025] [added: 2026] Proxy Statement, and that information is incorporated by reference in this Form 10-K.

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The information required by Item 12 related to the security ownership of management and certain beneficial owners is included in the section titled “Other Information” in the [removed: 2025] [added: 2026] Proxy Statement, and that information is incorporated by reference in this Annual Report on Form 10-K.

The information is provided as of December 31, [removed: 2024.][added: 2025.]

| Equity compensation plans approved by security holders (1) | | | | | | [removed: 2,366,620] [added: 2,744,621] | | | | | | $ | — | | | | | [removed: 5,339,980] [added: 4,331,863] | | | | | |

| Equity compensation plans not approved by security holders (2) | | | | | | [removed: 423,417] [added: 351,614] | | | | | | — | | | | | | [removed: 2,492,898] [added: 2,508,812] | | | | | |

(1)Column (a) includes, as of December 31, [removed: 2024: 1,589,955] [added: 2025: 1,986,297] shares that have been granted as restricted stock units (RSUs) and [removed: 723,136] [added: 707,678] shares that could be earned pursuant to grants of performance stock units (PSUs) (assuming the maximum number of PSUs are earned and payable at the end of the three-year performance period) under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (2020 IPA Plan) or predecessor plans and [removed: 53,529] [added: 50,646] stock units payable in stock or cash under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan (Directors Plan) or predecessor plans for non-employee directors.

Column (c) includes, as of December 31, [removed: 2024, 4,979,206] [added: 2025, 3,974,274] shares available for future issuance under the 2020 IPA Plan as options, stock appreciation rights, restricted stock awards, RSUs or PSUs and [removed: 360,774] [added: 357,589] shares available for future issuance under the Directors Plan as stock options and stock units.

| Total | | | | | | 3,096,235 | | | | | | $ | — | | | | | 6,840,675 | | | | | |

| Total | | | | | | 2,790,037 | | | | | | $ | — | | | | | 7,832,878 | | | | | |

The information required by Item 404 and 407(a) of Regulation S-K is included in the section titled “Corporate Governance” in the [removed: 2025] [added: 2026] Proxy Statement, and that information is incorporated by reference in this Form 10-K.

The information required by this Item 14 is included in the section titled “Audit Matters” in the [removed: 2025] [added: 2026] Proxy Statement, and that information is incorporated by reference in this Form 10-K.

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| [Consolidated Statements of Earnings – Years ended December 31, [removed: 2024, 2023] [added: 2025, 2024] and [removed: 2022](#i2cf70e383d544adc91c1e4046733af99_73)] [added: 2023](#i575d3349cd204377a00f1b80abdad504_73)] | | | [removed: [56](#i2cf70e383d544adc91c1e4046733af99_73)] [added: [52](#i575d3349cd204377a00f1b80abdad504_73)] | | |

| [Consolidated Statements of Comprehensive Income – Years ended December 31, [removed: 2024, 2023] [added: 2025, 2024] and [removed: 2022](#i2cf70e383d544adc91c1e4046733af99_76)] [added: 2023](#i575d3349cd204377a00f1b80abdad504_76)] | | | [removed: [57](#i2cf70e383d544adc91c1e4046733af99_76)] [added: [53](#i575d3349cd204377a00f1b80abdad504_76)] | | |

| [Consolidated Balance Sheets – At December 31, [removed: 2024] [added: 2025] and [removed: 2023](#i2cf70e383d544adc91c1e4046733af99_79)] [added: 2024](#i575d3349cd204377a00f1b80abdad504_79)] | | | [removed: [58](#i2cf70e383d544adc91c1e4046733af99_79)] [added: [54](#i575d3349cd204377a00f1b80abdad504_79)] | | |

| [Consolidated Statements of Cash Flows – Years ended December 31, [removed: 2024, 2023] [added: 2025, 2024] and [removed: 2022](#i2cf70e383d544adc91c1e4046733af99_82)] [added: 2023](#i575d3349cd204377a00f1b80abdad504_82)] | | | [removed: [59](#i2cf70e383d544adc91c1e4046733af99_82)] [added: [55](#i575d3349cd204377a00f1b80abdad504_82)] | | |

| [Consolidated Statements of Equity – Years ended December 31, [removed: 2024, 2023] [added: 2025, 2024] and [removed: 2022](#i2cf70e383d544adc91c1e4046733af99_85)] [added: 2023](#i575d3349cd204377a00f1b80abdad504_85)] | | | [removed: [60](#i2cf70e383d544adc91c1e4046733af99_85)] [added: [56](#i575d3349cd204377a00f1b80abdad504_85)] | | |

| [Notes to Consolidated Financial [removed: Statements](#i2cf70e383d544adc91c1e4046733af99_88)] [added: Statements](#i575d3349cd204377a00f1b80abdad504_88)] | | | [removed: [61](#i2cf70e383d544adc91c1e4046733af99_88)] [added: [57](#i575d3349cd204377a00f1b80abdad504_88)] | | |

| [Report of Independent Registered Public Accounting Firm on the Audited Consolidated Financial [removed: Statements](#i2cf70e383d544adc91c1e4046733af99_70)] [added: Statements](#i575d3349cd204377a00f1b80abdad504_70)] | | | [removed: [53](#i2cf70e383d544adc91c1e4046733af99_70)] [added: [50](#i575d3349cd204377a00f1b80abdad504_70)] | | |

| [Report of Independent Registered Public Accounting Firm Regarding Internal Control Over Financial [removed: Reporting](#i2cf70e383d544adc91c1e4046733af99_145)] [added: Reporting](#i575d3349cd204377a00f1b80abdad504_145)] | | | [removed: [99](#i2cf70e383d544adc91c1e4046733af99_145)] [added: [94](#i575d3349cd204377a00f1b80abdad504_145)] | | |

| 4.9 | | | | | | [Indenture dated as of September 7, 2017, between Lockheed Martin Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 99.1 [removed: of] [added: to] Lockheed Martin's Current Report on Form 8-K filed with the SEC on September 7, 2012).](https://www.sec.gov/Archives/edgar/data/936468/000119312517279340/d453584dex991.htm) | | | | | |

| [removed: 10.4] [added: 10.6] | | | | | | [Non-Employee Director Compensation Summary (incorporated by reference to Exhibit 10.3 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 25, 2022).](https://www.sec.gov/Archives/edgar/data/936468/000093646822000120/ex103q32022.htm) | | | | | |

| [removed: 10.5] [added: 10.20] | | | | | | [Lockheed Martin Corporation [removed: Directors Deferred] [added: Amended and Restated 2021 Management Incentive] Compensation [removed: Plan, as amended] [added: Plan] (incorporated by reference to Exhibit [removed: 10.2] [added: 10.5] to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended [removed: September 24, 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000123/ex102q32023.htm)] [added: March 26, 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000051/ex105q12023.htm)] | | | | | |

| [removed: 10.6] [added: 10.8] | | | | | | [Lockheed Martin Corporation Directors Equity Plan, as amended (incorporated by reference to Exhibit 10.1 to Lockheed Martin Corporation’s Current Report on Form 8-K filed with the SEC on November 2, 2006).](https://www.sec.gov/Archives/edgar/data/936468/000119312506222275/dex101.htm) | | | | | |

| [removed: 10.7] [added: 10.9] | | | | | | [Lockheed Martin Corporation Amended and Restated Directors Equity Plan (incorporated by reference to Exhibit 10.1 to Lockheed Martin Corporation’s Current Report on Form 8-K filed with the SEC on April 26, 2018).](https://www.sec.gov/Archives/edgar/data/936468/000093646818000025/ex1018k042618.htm) | | | | | |

| [removed: 10.8] [added: 10.11] | | | | | | [Form of Indemnification Agreement (incorporated by reference to Exhibit 10.34 to Lockheed Martin Corporation’s Annual Report on Form 10-K for the year ended December 31, 2009).](https://www.sec.gov/Archives/edgar/data/936468/000119312510040520/dex1034.htm) | | | | | |

| [removed: 10.9] [added: 10.12] | | | | | | [Lockheed Martin Corporation Supplemental Savings Plan, as amended and restated effective January 1, 2015 (incorporated by reference to Exhibit 10.4 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 29, 2015)](https://www.sec.gov/Archives/edgar/data/936468/000119312515141818/d887742dex104.htm). | | | | | |

| [removed: 10.10] [added: 10.13] | | | | | | [Amendment to Lockheed Martin Corporation Supplemental Savings Plan and Lockheed Martin Corporation Nonqualified Capital Accumulation Program, dated December 18, 2019 (incorporated by reference to Exhibit 10.31 to Lockheed Martin Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019).](https://www.sec.gov/Archives/edgar/data/936468/000093646820000016/ex1031q42019.htm) | | | | | |

| [removed: 10.11] [added: 10.14] | | | | | | [Lockheed Martin Corporation Nonqualified Capital Accumulation Plan, as amended and restated generally effective as of December 18, 2015 (incorporated by reference to Exhibit 10.22 to Lockheed Martin Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015).](https://www.sec.gov/Archives/edgar/data/936468/000119312516476010/d62685dex1022.htm) | | | | | |

| [removed: 10.12] [added: 10.15] | | | | | | [Lockheed Martin Corporation Deferred Management Incentive Compensation Plan, as amended and restated effective January 1, 2020 (incorporated by reference to Exhibit 10.8 to Lockheed Martin Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019).](https://www.sec.gov/Archives/edgar/data/936468/000093646820000016/ex108q42019.htm) | | | | | |

| [removed: 10.13] [added: 10.16] | | | | | | [Amendment No.1 to Lockheed Martin Corporation Deferred Management Incentive Compensation Plan, as amended and restated effective January 1, 2020 (incorporated by reference to Exhibit 10.12 to Lockheed Martin Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020).](https://www.sec.gov/Archives/edgar/data/936468/000093646821000013/ex1012q42020.htm) | | | | | |

| [removed: 10.14] [added: 10.17] | | | | | | [Amendment No. 2 to Lockheed Martin Corporation Deferred Management Incentive Compensation Plan, as amended and restated effective January 1, 2020 (incorporated by reference to Exhibit 10.8 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 27, 2022).](https://www.sec.gov/Archives/edgar/data/936468/000093646822000048/ex108q12022.htm) | | | | | |

| [removed: 10.15] [added: 10.18] | | | | | | [Amendment No. 3 to Lockheed Martin Corporation Deferred Management Incentive Compensation Plan, as amended and restated generally effective January 1, 2020 (incorporated by reference to Exhibit 10.13 to Lockheed Martin Corporation's Annual Report on Form 10-K for the year ended December 31, 2022).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000009/ex1013q42022.htm) | | | | | |

| [removed: 10.16] [added: 10.22] | | | | | | [removed: [Lockheed] [added: [Form of 2023 Annual Restricted Stock Unit Award Agreement under the Lockheed] Martin Corporation [removed: Amended and Restated 2021 Management] [added: 2020] Incentive [removed: Compensation] [added: Performance Award] Plan (incorporated by reference to Exhibit [removed: 10.5] [added: 10.1] to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 26, [removed: 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000051/ex105q12023.htm)] [added: 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000051/ex101q12023.htm)] | | | | | |

| [removed: 10.17] [added: 10.21] | | | | | | [Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.1 to Lockheed Martin Corporation’s Current Report on Form 8-K filed with the SEC on April 23, 2020).](https://www.sec.gov/Archives/edgar/data/936468/000093646820000059/a2020ipap042320.htm) | | | | | |

| [removed: 10.18] [added: 10.27] | | | | | | [Form of [removed: 2022] [added: 2024] Annual Restricted Stock Unit Award Agreement under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.1 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March [removed: 27, 2022).](https://www.sec.gov/Archives/edgar/data/936468/000093646822000048/ex101q12022.htm)] [added: 31, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex101q12024.htm)] | | | | | |

| [removed: 10.19] [added: 10.28] | | | | | | [Form of Performance Stock Unit Award Agreement [removed: (2022] [added: (2024] - [removed: 2024] [added: 2026] Performance Period) under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.2 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March [removed: 27, 2022).](https://www.sec.gov/Archives/edgar/data/936468/000093646822000048/ex102q12022.htm)] [added: 31, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex102q12024.htm)] | | | | | |

| [removed: 10.20] [added: 10.29] | | | | | | [Form of Long Term Incentive Performance Award Agreement [removed: (2022] [added: (2024] - [removed: 2024] [added: 2026] Performance Period) under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.3 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March [removed: 27, 2022).](https://www.sec.gov/Archives/edgar/data/936468/000093646822000048/ex103q12022.htm)] [added: 31, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex103q12024.htm)] | | | | | |

| [removed: 10.21] [added: 10.30] | | | | | | [Form of [removed: 2023] [added: 2025] Annual Restricted [removed: Stock] [added: St](https://www.sec.gov/Archives/edgar/data/936468/000093646825000035/ex101q12025.htm)[o](https://www.sec.gov/Archives/edgar/data/936468/000093646825000035/ex101q12025.htm)[ck] Unit Award Agreement under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.1 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March [removed: 26, 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000051/ex101q12023.htm)] [added: 30, 2025).](https://www.sec.gov/Archives/edgar/data/936468/000093646825000035/ex101q12025.htm)] | | | | | |

| [removed: 10.22] [added: 10.23] | | | | | | [Form of Performance Stock Unit Award Agreement (2023 - 2025 Performance Period) under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.2 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 26, 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000051/ex102q12023.htm) | | | | | |

| [removed: 10.23] [added: 10.24] | | | | | | [Form of Long Term Incentive Performance Award Agreement (2023 - 2025 Performance Period) under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.3 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 26, 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000051/ex103q12023.htm) | | | | | |

| [removed: 10.24] [added: 10.25] | | | | | | [Amendment to Outstanding Long-Term Incentive Performance and Performance Stock Unit Award Agreements (effective [removed: June 24, 2021)] [added: December 13, 2024)] (incorporated by reference to Exhibit [removed: 10.1] [added: 10.29] to Lockheed Martin Corporation’s [removed: Quarterly] [added: Annual] Report on Form [removed: 10-Q] [added: 10-K] for the [removed: quarter] [added: year] ended [removed: June 27, 2021).](https://www.sec.gov/Archives/edgar/data/936468/000093646821000072/ex101q22021.htm)] [added: December 31, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646825000009/ex1029q42024.htm)] | | | | | |

| [removed: 10.25] [added: 10.33] | | | | | | [removed: [Amendment to Outstanding Long-Term Incentive Performance and Performance] [added: [Form of Installment Restricted] Stock Unit Award [removed: Agreements (effective February 22, 2023)] [added: Agreement under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan] (incorporated by reference to Exhibit 10.4 to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March [removed: 26, 2023).](https://www.sec.gov/Archives/edgar/data/936468/000093646823000051/ex104q12023.htm)] [added: 30, 2025).](https://www.sec.gov/Archives/edgar/data/936468/000093646825000035/ex104q12025.htm)] | | | | | |

| [removed: 10.26] [added: 10.31] | | | | | | [Form of [removed: 2024 Annual Restricted] [added: Performance] Stock Unit Award Agreement [added: (2025 – 2027 Performance Period)] under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit [removed: 10.1] [added: 10.2] to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March [removed: 31, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex101q12024.htm)] [added: 30, 2025).](https://www.sec.gov/Archives/edgar/data/936468/000093646825000035/ex102q12025.htm)] | | | | | |

| [removed: 10.27] [added: 10.32] | | | | | | [Form of [added: Long Term Incentive] Performance [removed: Stock Unit] Award Agreement [removed: (2024 - 2026] [added: (2025 – 2027] Performance Period) under the Lockheed Martin Corporation 2020 Incentive Performance Award Plan (incorporated by reference to Exhibit [removed: 10.2] [added: 10.3] to Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended March [removed: 31, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex102q12024.htm)] [added: 30, 2025).](https://www.sec.gov/Archives/edgar/data/936468/000093646825000035/ex103q12025.htm)] | | | | | |

| [removed: 10.28] [added: 10.38] | | | | | | [removed: [Form of Long Term Incentive Performance Award Agreement (2024 - 2026 Performance Period) under the] [added: [Amendment No. 2 to] Lockheed Martin Corporation [removed: 2020 Incentive Performance Award Plan] [added: Executive Severance Plan, as amended and restated effective December 1, 2016] (incorporated by reference to Exhibit [removed: 10.](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex103q12024.htm)[3](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex103q12024.htm) [to] [added: 10.6 to] Lockheed Martin Corporation’s Quarterly Report on Form 10-Q for the quarter ended [removed: March 31, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646824000052/ex103q12024.htm)] [added: June 28, 2020).](https://www.sec.gov/Archives/edgar/data/936468/000093646820000115/ex1062q2020.htm)] | | | | | |

| [removed: 10.29] [added: 10.26] | | | | | | [Amendment to [removed: Outstanding] Long-Term Incentive Performance and Performance Stock Unit Award Agreements [added: (2023 - 2025 Performance Period)] (effective December [removed: 13, 2024).](https://www.sec.gov/Archives/edgar/data/936468/000093646825000009/ex1029q42024.htm)] [added: 12, 2025).](https://www.sec.gov/Archives/edgar/data/936468/000162828026004195/ex1026q42025.htm)] | | | | | |

| [removed: 10.30] [added: 10.34] | | | | | | [Lockheed Martin Corporation Consolidated Supplemental Retirement Benefit Plan, as amended and restated effective October 5, 2018 (incorporated by reference to Exhibit 10.26 to Lockheed Martin Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018).](https://www.sec.gov/Archives/edgar/data/936468/000093646819000009/ex1026q42018.htm) | | | | | |