LMT Filings — Lockheed Martin Corporation - FilingSpy
LMT
Lockheed Martin Corporation
A maker of fighter jets like the F-35 and F-16, missile-defense systems such as THAAD, Sikorsky helicopters, and the Orion spacecraft for NASA astronauts. Created in 1995 from the merger of Lockheed Corporation and Martin Marietta, the company's name traces to brothers Allan and Malcolm Loughead, who changed the spelling to match how people mispronounced their surname. Its secretive Skunk Works division got its name from the foul-smelling plastics factory beside its workshop, a joke drawn from the comic strip Li'l Abner.
Q2 FY2026 net income rose to $1.8B from $342M a year earlier as prior-year program losses did not recur
The quarter swung back to normal earnings after a year of program losses. rose 11% to $20.1B and recovered to $6.44 versus $1.46 a year ago, with at $2.5B driven by the absence of $1.0B in prior-year and higher volume at and . The business has absorbed last year's charges and returned to its prior margin trajectory.
Key takeaways
rose to $1.8B from $342M in Q2 2025, as the $1.0B in on classified, , and programs recorded a year earlier did not recur.
rose 11% to $20.1B, led by up $692M on and classified contract recovery and up $668M on and THAAD ramps.
swung to $2.5B from $748M; operating profit increased $858M to $760M reflecting the absence of the $950M classified program loss, and profit turned positive at $437M after prior-year losses.
Section summaries
Management's Discussion and Analysis
Q2 2026 net earnings surged to $1.8B from $342M, driven by absence of prior-year reach-forward losses and higher volume across segments.
⌄
Consolidated sales rose 11% to $20.1B in Q2, led by (+$692M on and classified contract recovery) and MFC (+$668M on /THAAD ramps).
more than tripled to $2.6B for H1 2026 from $805M a year earlier, driven by higher customer receipts and lower tax payments following the Tax Act.
deliveries reached 19 in Q2, and grew 24% to $594M on higher volume and $60M in favorable profit adjustments.
What changed
The $950M classified program loss and the $570M and $95M losses flagged in FY2025 and Q2 FY2025 did not recur in Q2 FY2026; recovered to $2.5B.
Lot 18-19 contract authorization and recognition flagged since FY2024 were not addressed in this filing; the item remains open.
reversed from the -$291M Q1 FY2026 and $805M H1 FY2025 to $2.6B H1 FY2026, settling the working-capital watch item from Q1.
at 11.5% in Q1 FY2026 and 4.0% in Q2 FY2025 compared to the Q2 FY2026 recovery shows the margin inflection followed the absence of one-off losses.
Q1 FY2026 flagged ULA joint venture risk; no update appeared in this 10-Q's risk factors, which restated the prior quarter's disclosures.
What to watch
Lot 18-19 contract authorization and any recognition still pending since FY2024
Further losses or resolution on the classified program carried from FY2025
Q3 FY2026 against the $2.6B H1 2026 figure
trajectory after the 24% Q2 profit gain on ramps and $60M favorable adjustments
swung to $2.5B from $748M, as 2025 included $1.0B in reach-forward losses on classified, , and TUHP programs that did not recur.
increased $858M to $760M, reflecting the absence of a $950M classified program loss; deliveries reached 19 in Q2.
MFC grew 24% to $594M on higher volume and $60M in favorable profit adjustments; RMS profit turned positive at $437M after prior-year losses.
more than tripled to $2.6B for H1 2026, driven by higher customer receipts and lower tax payments following the Tax Act.
The company noted risks from supply chain, inflation, and tariffs, but does not expect existing tariffs to materially impact long-term results.
Quantitative and Qualitative Disclosures About Market Risk
As disclosed in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of our 2025 Form 10-K, we transact business globally and are subject to risks associated with changing foreign currency exchange rates. We enter into foreign currency hedges such as fo…
⌄
As disclosed in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of our 2025 Form 10-K, we transact business globally and are subject to risks associated with changing foreign currency exchange rates. We enter into foreign currency hedges such as forward and option contracts that change in value as foreign currency exchange rates change. Our exposures to market risk have not changed materially since December 31, 2025. See “Note 8 - Fair Value Measurements” included in our Notes to Consolidated Financial Statements for additional discussion.
For information regarding legal proceedings and environmental matters, including current estimates of the amounts that we believe are required for remediation or clean-up to the extent estimable, see “Note 7 - Legal Proceedings and Contingencies — Legal Proceedings and Environme…
⌄
For information regarding legal proceedings and environmental matters, including current estimates of the amounts that we believe are required for remediation or clean-up to the extent estimable, see “Note 7 - Legal Proceedings and Contingencies — Legal Proceedings and Environmental Matters” included in our Notes to Consolidated Financial Statements in this Form 10-Q, which is hereby incorporated by reference. For additional information and a description of previously reported matters, see also “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,” in our 2025 Form 10-K.
Except for the risk factor update disclosed in Part II, Item 1A, “Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended March 29, 2026, there have been no other material changes to our risk factors disclosed in Part I, Item 1A, “Risk Factors” of our 2025 Form…
⌄
Except for the risk factor update disclosed in Part II, Item 1A, “Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended March 29, 2026, there have been no other material changes to our risk factors disclosed in Part I, Item 1A, “Risk Factors” of our 2025 Form 10-K. These risks and uncertainties described in our risk factors have the potential to materially affect our business, results of operations, financial condition, cash flows, projected results and future prospects. These risks are not exclusive and additional risks to which we are subject include the factors mentioned under “Forward-Looking Statements” and the risks described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q.
41
Table of Contents