Lockheed Martin Corp. (LMT) is a global defense and aerospace company engaged in research, design, development, manufacturing, and services. The company operates through four main business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

Lockheed competes both in the U.S. and internationally. Some of its big-name competitors include aircraft manufacturer Boeing Co. (BA), defense firm Raytheon Co. (RTN), defense and aerospace company BAE Systems Inc., and global defense company Northrop Grumman Corp. (NOC).

Key Takeaways

  • Lockheed Martin provides advanced technology systems, products, and services related to the aerospace and defense industry.
  • The biggest share of Lockheed's sales come from the aeronautics business.
  • Lockheed appointed James D. Taiclet to the roles of president and CEO in mid-June, 2020.

Lockheed Martin's Financials

Lockheed Martin posted net income of $1.6 billion on $16.2 billion of revenue in Q2 2020 (ended June 28, 2020) for a net profit margin of 9.9%. As much as 80.4%, or $13.0 billion, of revenue originated domestically. The remaining 19.6% came from other regions across the globe, including Asia Pacific (5.6%), Europe (7.2%), the Middle East (5.4%), and Other (1.5%). The U.S. government is the company’s biggest client, accounting for 79.6%, or $12.9 billion, of total revenue.

Net income, which included a non-cash impairment charge of $128 million related to an investment in a joint venture, grew 14.5% during Q2 2020 compared to the same quarter in 2019. Revenue grew 12.4% compared to the same three-month period a year ago. Lockheed Martin noted that favorable contract award timing and strong performance more than offset the negative impacts of the COVID-19 pandemic on its financial results.

Lockheed Martin's Business Segments

Lockheed Martin operates four main business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. The company breaks down its revenue and operating income in the four main segments below.

Aeronautics

Lockheed's Aeronautics business engages in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, unmanned air vehicles, and related technologies. 

The Aeronautics segment posted $6.5 billion in revenue and $739 million in operating profit in Q2 2020, comprising 40.1% of the company’s total revenue and 41.3% of its total operating profit of $1.8 billion. The segment’s revenue grew by 17.2% compared to the same quarter in 2019. Operating profit grew by 24.8% in Q2 2020 compared to the year-ago quarter.

Missiles and Fire Control

Lockheed's Missiles and Fire Control business offers a diverse range of products and services, including air and missile defense systems, logistics, fire control systems, mission operations support, manned and unmanned ground vehicles, and energy management solutions. 

The segment posted $2.8 billion in revenue and $370 million in operating profit in Q2 2020, comprising 17.3% of the company’s total revenue and 20.7% of its total operating profit. The segment’s revenue grew by 16.2% in Q2 2020 compared the same quarter in 2019. Operating profit grew 13.1% throughout the quarter compared to the same three-month period a year ago.

Rotary and Mission Systems

Lockheed's Rotary and Mission Systems business provides design, manufacture, service and support for areas such as military and commercial helicopters; ship and submarine systems, sea and land-based missile defense systems, and cybersecurity.

The segment posted $4.0 billion in revenue and $429 million in operating profit in Q2 2020, comprising 24.9% of the company’s total revenue and 24.0% of its total operating profit. The segment’s revenue grew by 7.2% in Q2 2020 compared to the same quarter in 2019. Operating profit grew by 23.6% throughout Q2 compared to the year-ago quarter.

Space

Lockheed's Space business engages in a broad range of activities including the development and production of satellites, space transportation systems, and defensive systems. The segment is also responsible for various classified systems and services in support of vital national security systems.

The Space segment posted $2.9 billion in revenue and $252 million in operating profit in Q2 2020, comprising 17.7% of the company’s total revenue and 14.1% of total operating profit. The segment’s revenue grew by 6.6% throughout Q2 compared to the same quarter a year ago. Operating profit fell 12.5% during the quarter compared to the same three-month period a year ago.

Lockheed Martin's Recent Developments

Lockheed Martin announced on June 15, 2020, the appointment of James D. Taiclet to the roles of president and Chief Executive Officer (CEO). Mr. Taiclet is a Gulf War veteran and pilot who first joined the company's board in 2018 and will continue to serve on the board. He succeeds Marilyn A. Hewson who has served as Lockheed Martin's chairman, president and CEO since 2014 and president and CEO since 2013. Ms. Hewson will become executive chairman of the board.

How Lockheed Martin Reports Diversity & Inclusiveness

As part of our effort to improve the awareness of the importance of diversity in companies, we offer investors a glimpse into the transparency of Lockheed Martin and its commitment to diversity, inclusiveness, and social responsibility. We examined the data Lockheed Martin releases to show you how it reports the diversity of its board and workforce to help readers make educated purchasing and investing decisions.

Below is a table of potential diversity measurements. It shows whether Lockheed Martin discloses its data about the diversity of its board of directors, C-Suite, general management, and employees overall, as is marked with a ✔. It also shows whether Lockheed Martin breaks down those reports to reveal the diversity of itself by race, gender, ability, veteran status, and LGBTQ+ identity.

Lockheed Martin Diversity & Inclusiveness Reporting
  Race Gender Ability Veteran Status Sexual Orientation
Board of Directors   ✔ (U.S. Only)       
C-Suite
 
       
General Management ✔ (U.S. Only)  ✔ (U.S. Only)  ✔ (U.S. Only)  ✔ (U.S. Only)   
Employees ✔ (U.S. Only)      ✔ (U.S. Only)