Analysis of Reportable Segments
Lockheed Martin Corp. operates in 4 segments: Aeronautics; Missiles and Fire Control (MFC); Rotary and Mission Systems (RMS); and Space.
Segment Profit Margin
Lockheed Martin Corp., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 6.81% | 8.70% | 10.17% | 10.52% | 10.38% |
| Missiles and Fire Control (MFC) | 12.98% | 3.06% | 12.91% | 13.69% | 13.39% |
| Rotary and Mission Systems (RMS) | 6.72% | 9.81% | 10.16% | 9.25% | 9.62% |
| Space | 10.07% | 9.53% | 8.93% | 8.77% | 9.31% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins exhibited varied performance across the observed period. Overall, a trend of decreasing margins is apparent in the later years, though the specific trajectory differs significantly by segment.
- Aeronautics
- The Aeronautics segment demonstrated a modest increase in profit margin from 10.38% in 2021 to 10.52% in 2022. This was followed by a consistent decline, reaching 8.70% in 2024 and further decreasing to 6.81% in 2025. This represents the most substantial and continuous decrease in margin among the reported segments.
- Missiles and Fire Control (MFC)
- The MFC segment initially showed a slight increase in profit margin from 13.39% in 2021 to 13.69% in 2022, followed by a decrease to 12.91% in 2023. A significant drop occurred in 2024, with the margin falling to 3.06%. However, the segment experienced a substantial recovery in 2025, with the margin rising to 12.98%, nearly returning to prior levels. This segment exhibits the most volatility in profit margin.
- Rotary and Mission Systems (RMS)
- The RMS segment experienced a slight decrease in profit margin from 9.62% in 2021 to 9.25% in 2022. A subsequent increase brought the margin to 10.16% in 2023 and 9.81% in 2024. Similar to Aeronautics, RMS saw a decline in 2025, with the margin decreasing to 6.72%.
- Space
- The Space segment’s profit margin fluctuated modestly between 9.31% in 2021 and 8.77% in 2022, then increased to 8.93% in 2023 and 9.53% in 2024. The segment continued this upward trend, reaching 10.07% in 2025, representing the only segment to demonstrate consistent margin improvement in the latter part of the period.
The contrasting trends suggest differing operational dynamics and market conditions impacting each segment. The decline in Aeronautics and RMS margins warrants further investigation, while the recovery in MFC and growth in Space indicate potential areas of strength. The significant volatility in MFC’s performance also merits attention.
Segment Profit Margin: Aeronautics
Lockheed Martin Corp.; Aeronautics; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 2,086) | 2,523) | 2,825) | 2,866) | 2,799) |
| Sales | 30,638) | 28,995) | 27,777) | 27,236) | 26,967) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 6.81% | 8.70% | 10.17% | 10.52% | 10.38% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit ÷ Sales
= 100 × 2,086 ÷ 30,638 = 6.81%
The Aeronautics segment demonstrated consistent operating profit and sales growth from 2021 through 2023, followed by a decline in both metrics in subsequent years. However, the segment profit margin exhibited a more pronounced shift, decreasing significantly over the five-year period.
- Operating Profit
- Operating profit for the Aeronautics segment increased from US$2,799 million in 2021 to US$2,866 million in 2022, and further to US$2,825 million in 2023. A subsequent decrease was observed, with operating profit falling to US$2,523 million in 2024 and US$2,086 million in 2025.
- Sales
- Sales within the Aeronautics segment showed a steady increase from US$26,967 million in 2021 to US$30,638 million in 2025. Growth was recorded each year, with the largest absolute increase occurring between 2024 and 2025 (US$1,643 million). Despite this sales growth, operating profit declined in the latter years.
- Segment Profit Margin
- The segment profit margin began at 10.38% in 2021 and peaked at 10.52% in 2022. A slight decrease to 10.17% was noted in 2023. A more substantial decline followed, with the margin dropping to 8.70% in 2024 and reaching 6.81% in 2025. This indicates that while sales increased, the segment’s ability to convert those sales into profit diminished over time.
The divergence between sales and segment profit margin suggests increasing cost pressures within the Aeronautics segment, potentially due to factors such as rising material costs, labor expenses, or increased investment in research and development. Further investigation would be required to determine the specific drivers behind this margin compression.
Segment Profit Margin: Missiles and Fire Control (MFC)
Lockheed Martin Corp.; Missiles and Fire Control (MFC); segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 1,989) | 413) | 1,541) | 1,635) | 1,648) |
| Sales | 15,318) | 13,486) | 11,941) | 11,944) | 12,311) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 12.98% | 3.06% | 12.91% | 13.69% | 13.39% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit ÷ Sales
= 100 × 1,989 ÷ 15,318 = 12.98%
The Missiles and Fire Control segment experienced fluctuating performance between 2021 and 2025. Operating profit initially demonstrated relative stability, followed by a significant decline and subsequent recovery. Sales exhibited a different pattern, with a slight decrease followed by substantial growth.
- Operating Profit
- Operating profit for the segment remained relatively consistent between 2021 and 2022, at approximately US$1.6 billion. A decline was observed in 2023, falling to US$1.541 billion. This downward trend accelerated considerably in 2024, with operating profit decreasing sharply to US$413 million. However, a strong recovery occurred in 2025, with operating profit rising to US$1.989 billion, exceeding the levels seen in 2021 and 2022.
- Sales
- Sales experienced a minor decrease from US$12.311 billion in 2021 to US$11.944 billion in 2022, remaining at US$11.941 billion in 2023. A substantial increase in sales was then recorded in 2024, reaching US$13.486 billion. This growth continued into 2025, with sales reaching US$15.318 billion, representing a significant expansion over the prior five-year period.
- Segment Profit Margin
- The segment profit margin mirrored the operating profit trend to some extent. It began at 13.39% in 2021 and increased slightly to 13.69% in 2022. A modest decrease to 12.91% occurred in 2023. The most dramatic change was observed in 2024, with the profit margin plummeting to 3.06%, coinciding with the significant decline in operating profit. The margin rebounded strongly in 2025, reaching 12.98%, indicating improved profitability despite the higher sales volume.
The considerable divergence between sales growth and operating profit in 2024 warrants further investigation. While sales increased, the substantial reduction in operating profit and the corresponding margin compression suggest potential issues with cost management, pricing pressures, or unfavorable changes in the product mix during that year. The recovery in 2025 indicates that these issues were addressed, or that external factors shifted favorably.
Segment Profit Margin: Rotary and Mission Systems (RMS)
Lockheed Martin Corp.; Rotary and Mission Systems (RMS); segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 1,323) | 1,921) | 1,865) | 1,673) | 1,798) |
| Sales | 19,683) | 19,584) | 18,364) | 18,078) | 18,684) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 6.72% | 9.81% | 10.16% | 9.25% | 9.62% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit ÷ Sales
= 100 × 1,323 ÷ 19,683 = 6.72%
The Rotary and Mission Systems segment demonstrated fluctuating performance between 2021 and 2025. Operating profit and sales exhibited generally stable trends with a notable shift in segment profit margin during the analyzed period.
- Operating Profit
- Operating profit for the segment experienced a slight decrease from $1,798 million in 2021 to $1,673 million in 2022. A recovery was observed in 2023, with profit rising to $1,865 million, and continued growth into 2024 reaching $1,921 million. However, a significant decline occurred in 2025, with operating profit falling to $1,323 million.
- Sales
- Sales showed a minor contraction from $18,684 million in 2021 to $18,078 million in 2022. Sales then increased to $18,364 million in 2023 and continued to rise, reaching $19,584 million in 2024. Sales remained relatively stable in 2025 at $19,683 million.
- Segment Profit Margin
- The segment profit margin began at 9.62% in 2021, decreased to 9.25% in 2022, and then increased to 10.16% in 2023. It slightly decreased to 9.81% in 2024 before experiencing a substantial decline to 6.72% in 2025. This decrease in 2025 coincides with the decline in operating profit, despite relatively stable sales, suggesting potential cost pressures or changes in the revenue mix.
The period between 2021 and 2024 showed a generally positive trend in profitability, as evidenced by the increasing operating profit and segment profit margin. However, the results for 2025 indicate a potential shift in the segment’s performance, warranting further investigation into the factors contributing to the reduced profit margin.
Segment Profit Margin: Space
Lockheed Martin Corp.; Space; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 1,345) | 1,226) | 1,158) | 1,045) | 1,134) |
| Sales | 13,357) | 12,871) | 12,963) | 11,913) | 12,174) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 10.07% | 9.53% | 8.93% | 8.77% | 9.31% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating profit ÷ Sales
= 100 × 1,345 ÷ 13,357 = 10.07%
The Space segment demonstrated a generally positive trajectory in financial performance between 2021 and 2025. Operating profit and sales both exhibited fluctuations but ultimately trended upwards over the five-year period. Critically, the segment profit margin showed consistent improvement, reaching its highest point in 2025.
- Operating Profit
- Operating profit experienced a slight decrease from $1,134 million in 2021 to $1,045 million in 2022. However, it subsequently increased, reaching $1,158 million in 2023, $1,226 million in 2024, and culminating in $1,345 million in 2025. This indicates a recovery and sustained growth in profitability within the segment.
- Sales
- Sales mirrored the operating profit trend, with a minor decline from $12,174 million in 2021 to $11,913 million in 2022. Sales then increased to $12,963 million in 2023, $12,871 million in 2024, and $13,357 million in 2025. The overall upward trend suggests growing demand for the segment’s products and services.
- Segment Profit Margin
- The segment profit margin began at 9.31% in 2021, decreased to 8.77% in 2022, and then began a consistent upward climb. It reached 8.93% in 2023, 9.53% in 2024, and peaked at 10.07% in 2025. This improvement suggests increasing efficiency in operations, potentially through cost management or a shift towards higher-margin products and services. The consistent increase in margin, despite fluctuations in sales, is a positive indicator of the segment’s financial health.
In summary, the Space segment demonstrated resilience and growth over the analyzed period. While a slight dip occurred in 2022, both operating profit and sales recovered and expanded. The consistent improvement in segment profit margin is particularly noteworthy, indicating enhanced profitability and operational effectiveness.
Segment Return on Assets (Segment ROA)
Lockheed Martin Corp., ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 14.22% | 19.08% | 21.46% | 23.77% | 26.02% |
| Missiles and Fire Control (MFC) | 31.55% | 6.94% | 27.02% | 28.25% | 31.43% |
| Rotary and Mission Systems (RMS) | 7.98% | 11.28% | 10.64% | 9.30% | 10.18% |
| Space | 17.34% | 16.59% | 17.65% | 16.45% | 18.29% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment Return on Assets (ROA) exhibited varied performance across the reporting periods. Overall, a trend of decreasing returns is observable in some segments, while others demonstrate volatility or recent improvement.
- Aeronautics
- The Aeronautics segment experienced a consistent decline in ROA from 26.02% in 2021 to 14.22% in 2025. This represents a substantial decrease over the five-year period, indicating diminishing profitability relative to assets employed within this segment. The rate of decline appears to be accelerating in the later years.
- Missiles and Fire Control (MFC)
- The MFC segment demonstrated a more volatile pattern. ROA decreased from 31.43% in 2021 to 28.25% in 2022, then continued to decline to 27.02% in 2023. A significant drop occurred in 2024, with ROA falling to 6.94%. However, a substantial recovery was observed in 2025, with ROA increasing to 31.55%, exceeding the 2021 level. This suggests potential cyclicality or the impact of specific, large contracts within the segment.
- Rotary and Mission Systems (RMS)
- ROA for the RMS segment remained relatively stable between 2021 and 2023, fluctuating between 9.30% and 10.64%. A slight increase was noted in 2024, reaching 11.28%, before decreasing to 7.98% in 2025. This segment’s performance appears less dramatic than that of Aeronautics or MFC, but the 2025 decline warrants attention.
- Space
- The Space segment exhibited a relatively stable ROA, ranging from 16.45% to 18.29% throughout the period. A minor increase was observed in 2025, reaching 17.34%. This segment demonstrates the most consistent performance of the four, with limited fluctuation in returns.
In summary, while the Space segment maintained relative stability, the Aeronautics segment experienced a consistent decline in ROA. The MFC segment showed significant volatility, with a sharp decrease in 2024 followed by a strong recovery in 2025. The RMS segment demonstrated modest fluctuations, ending the period with a decrease in ROA. These varying trends suggest differing operational dynamics and market conditions impacting each segment.
Segment ROA: Aeronautics
Lockheed Martin Corp.; Aeronautics; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 2,086) | 2,523) | 2,825) | 2,866) | 2,799) |
| Assets | 14,673) | 13,223) | 13,167) | 12,055) | 10,756) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 14.22% | 19.08% | 21.46% | 23.77% | 26.02% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 2,086 ÷ 14,673 = 14.22%
The Aeronautics segment demonstrates a consistent decline in profitability relative to its asset base over the five-year period. Operating profit initially showed a modest increase before experiencing a steady decrease, while assets consistently increased. This combination resulted in a decreasing trend in Segment Return on Assets (ROA).
- Operating Profit
- Operating profit for the Aeronautics segment increased from $2,799 million in 2021 to $2,866 million in 2022. However, subsequent years show a downward trend, decreasing to $2,825 million in 2023, $2,523 million in 2024, and further to $2,086 million in 2025. This represents an overall decrease of approximately 25.5% from 2021 to 2025.
- Assets
- The value of assets within the Aeronautics segment has increased each year. Starting at $10,756 million in 2021, assets grew to $12,055 million in 2022, $13,167 million in 2023, $13,223 million in 2024, and reached $14,673 million in 2025. This indicates a consistent investment in, or accumulation of, assets within the segment.
- Segment ROA
- Segment ROA experienced a consistent decline throughout the period. Beginning at 26.02% in 2021, it decreased to 23.77% in 2022, 21.46% in 2023, 19.08% in 2024, and ultimately reached 14.22% in 2025. This suggests that the segment is becoming less efficient at generating profit from its asset base. The decrease in ROA is likely attributable to the combination of declining operating profit and increasing asset levels.
The continued growth in assets, coupled with the decreasing operating profit, warrants further investigation. Potential factors contributing to this trend could include increased investment in long-term projects, changes in the competitive landscape, or shifts in cost structures within the segment.
Segment ROA: Missiles and Fire Control (MFC)
Lockheed Martin Corp.; Missiles and Fire Control (MFC); segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 1,989) | 413) | 1,541) | 1,635) | 1,648) |
| Assets | 6,304) | 5,952) | 5,703) | 5,788) | 5,243) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 31.55% | 6.94% | 27.02% | 28.25% | 31.43% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 1,989 ÷ 6,304 = 31.55%
The segment Return on Assets (ROA) for Missiles and Fire Control exhibited considerable fluctuation between 2021 and 2025. Operating profit and total assets within the segment also demonstrated distinct trends over the same period.
- Operating Profit
- Operating profit remained relatively stable between 2021 and 2023, fluctuating around the $1.6 billion mark. A significant decrease was observed in 2024, falling to $413 million, before rebounding strongly in 2025 to $1,989 million. This suggests potential project timing impacts or significant contract changes affecting profitability in the near term.
- Assets
- Total assets within the segment generally increased throughout the period. From $5.243 billion in 2021, assets grew to $6.304 billion in 2025. The rate of asset growth was most pronounced between 2021 and 2022, and again between 2024 and 2025, potentially indicating increased investment in long-term projects or acquisitions.
- Segment ROA
- Segment ROA mirrored the fluctuations in operating profit. It began at 31.43% in 2021, declining to 28.25% in 2022 and 27.02% in 2023. The most substantial decrease occurred in 2024, with ROA plummeting to 6.94%, coinciding with the sharp drop in operating profit. The ROA recovered significantly in 2025, reaching 31.55%, exceeding the initial 2021 level. This indicates a strong correlation between profitability and asset utilization within the segment.
The substantial decline in ROA during 2024, followed by a robust recovery in 2025, warrants further investigation. Understanding the drivers behind the 2024 operating profit decrease is crucial for assessing the sustainability of the 2025 performance. The increasing asset base suggests continued investment, and the ability to translate these investments into improved profitability, as demonstrated by the 2025 ROA, is a positive indicator.
Segment ROA: Rotary and Mission Systems (RMS)
Lockheed Martin Corp.; Rotary and Mission Systems (RMS); segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 1,323) | 1,921) | 1,865) | 1,673) | 1,798) |
| Assets | 16,576) | 17,025) | 17,521) | 17,988) | 17,664) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 7.98% | 11.28% | 10.64% | 9.30% | 10.18% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 1,323 ÷ 16,576 = 7.98%
The Rotary and Mission Systems segment demonstrated fluctuating performance in profitability and asset utilization between 2021 and 2025. Operating profit and assets experienced varied movements over the period, resulting in a corresponding pattern in the segment’s Return on Assets (ROA).
- Operating Profit
- Operating profit initially decreased from $1,798 million in 2021 to $1,673 million in 2022, representing a decline of approximately 7.2%. A subsequent recovery was observed in 2023, with operating profit increasing to $1,865 million. This positive trend continued into 2024, reaching $1,921 million. However, a significant decrease occurred in 2025, with operating profit falling to $1,323 million.
- Assets
- The segment’s asset base generally decreased over the five-year period. Assets rose slightly from $17,664 million in 2021 to $17,988 million in 2022. Following this, a downward trend was established, with assets decreasing to $17,521 million in 2023, $17,025 million in 2024, and further to $16,576 million in 2025.
- Segment ROA
- Segment ROA mirrored the interplay between operating profit and assets. It began at 10.18% in 2021, decreased to 9.30% in 2022, and then increased to 10.64% in 2023. The ROA peaked at 11.28% in 2024, indicating improved efficiency in asset utilization. However, a substantial decline to 7.98% was recorded in 2025, coinciding with the decrease in operating profit despite continued asset reduction. This suggests that the decline in profitability had a disproportionately negative impact on the segment’s ability to generate returns from its assets.
The segment experienced a period of growth in operating profit and ROA from 2022 to 2024, but the substantial decrease in operating profit in 2025 significantly impacted the segment’s ROA, indicating a potential weakening in performance during that year.
Segment ROA: Space
Lockheed Martin Corp.; Space; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | 1,345) | 1,226) | 1,158) | 1,045) | 1,134) |
| Assets | 7,755) | 7,388) | 6,560) | 6,351) | 6,199) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 17.34% | 16.59% | 17.65% | 16.45% | 18.29% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating profit ÷ Assets
= 100 × 1,345 ÷ 7,755 = 17.34%
The Space segment demonstrated a generally stable financial performance between 2021 and 2025, with some fluctuations in profitability and asset levels. Operating profit exhibited an overall upward trend, while assets increased consistently throughout the period. Segment Return on Assets (ROA) showed moderate variability, remaining within a relatively narrow range.
- Operating Profit
- Operating profit for the Space segment decreased from US$1,134 million in 2021 to US$1,045 million in 2022, representing a decline of approximately 7.8%. However, it subsequently increased over the following three years, reaching US$1,345 million in 2025. This indicates a recovery and subsequent growth in profitability within the segment.
- Assets
- The value of assets within the Space segment increased steadily from US$6,199 million in 2021 to US$7,755 million in 2025. The largest single-year increase occurred between 2022 and 2023, with an increase of US$209 million. This consistent growth suggests ongoing investment and expansion within the segment.
- Segment ROA
- Segment ROA experienced a decrease from 18.29% in 2021 to 16.45% in 2022, mirroring the decline in operating profit. It then recovered to 17.65% in 2023 before decreasing slightly to 16.59% in 2024. The ROA concluded the period at 17.34% in 2025. While fluctuating, the ROA remained above 16% throughout the five-year period, indicating a consistently strong ability to generate profit from its asset base.
The correlation between operating profit and segment ROA is evident, suggesting that changes in profitability directly impact the segment’s efficiency in utilizing its assets. The continued growth in assets, coupled with increasing operating profit, suggests the segment is effectively deploying capital and maintaining a healthy level of profitability.
Segment Asset Turnover
Lockheed Martin Corp., asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 2.09 | 2.19 | 2.11 | 2.26 | 2.51 |
| Missiles and Fire Control (MFC) | 2.43 | 2.27 | 2.09 | 2.06 | 2.35 |
| Rotary and Mission Systems (RMS) | 1.19 | 1.15 | 1.05 | 1.01 | 1.06 |
| Space | 1.72 | 1.74 | 1.98 | 1.88 | 1.96 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment asset turnover ratios exhibit varied performance across the reporting periods. Generally, the ratios indicate the efficiency with which each segment converts its assets into revenue. Observed trends differ significantly by segment, suggesting distinct operational characteristics and capital utilization strategies.
- Aeronautics
- The Aeronautics segment demonstrates a consistent downward trend in asset turnover from 2.51 in 2021 to 2.09 in 2025. This suggests a decreasing efficiency in asset utilization within this segment over the five-year period. While a slight recovery is noted in 2024 (2.19), it does not reverse the overall decline. This trend warrants further investigation to determine the underlying causes, such as increased investment in long-term assets or slower revenue growth relative to asset base.
- Missiles and Fire Control (MFC)
- The MFC segment shows a more volatile pattern. The ratio decreased from 2.35 in 2021 to 2.06 in 2022, then experienced a recovery, increasing to 2.43 in 2025. This indicates improved asset utilization in recent years, potentially due to increased sales or more efficient asset management. The fluctuations suggest sensitivity to specific contract cycles or project timelines within the segment.
- Rotary and Mission Systems (RMS)
- RMS consistently exhibits the lowest asset turnover ratio among the reported segments. The ratio remains relatively stable, increasing gradually from 1.06 in 2021 to 1.19 in 2025. This suggests a slower conversion of assets into revenue compared to other segments, potentially reflecting the nature of long-term contracts or capital-intensive projects characteristic of this business area. The gradual increase may indicate improving, but still relatively low, asset efficiency.
- Space
- The Space segment’s asset turnover ratio initially decreased from 1.96 in 2021 to 1.88 in 2022, followed by a slight increase to 1.98 in 2023. However, the ratio then declined again in the subsequent two years, reaching 1.72 in 2025. This pattern suggests potential cyclicality or project-specific impacts on asset utilization. The recent decline requires further scrutiny to understand the factors contributing to reduced efficiency.
Overall, the segment asset turnover ratios highlight varying levels of operational efficiency and capital utilization across the different business areas. The Aeronautics and Space segments demonstrate declining trends, while MFC shows improvement. RMS consistently maintains the lowest ratio, indicating a slower asset turnover compared to other segments.
Segment Asset Turnover: Aeronautics
Lockheed Martin Corp.; Aeronautics; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 30,638) | 28,995) | 27,777) | 27,236) | 26,967) |
| Assets | 14,673) | 13,223) | 13,167) | 12,055) | 10,756) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 2.09 | 2.19 | 2.11 | 2.26 | 2.51 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales ÷ Assets
= 30,638 ÷ 14,673 = 2.09
The Aeronautics segment experienced consistent growth in sales between 2021 and 2025, increasing from US$26,967 million to US$30,638 million. Simultaneously, segment assets exhibited a notable increase over the same period, rising from US$10,756 million to US$14,673 million. However, the segment asset turnover ratio demonstrated a declining trend throughout the analyzed timeframe.
- Segment Asset Turnover
- The segment asset turnover ratio decreased steadily from 2.51 in 2021 to 2.09 in 2025. This indicates a diminishing efficiency in utilizing assets to generate sales within the Aeronautics segment. While sales increased in absolute terms, the growth in assets outpaced the growth in sales, resulting in a lower turnover ratio.
- The most significant decline occurred between 2021 and 2022, with the ratio falling from 2.51 to 2.26. The rate of decline slowed in subsequent years, though the downward trend persisted. A slight increase was observed between 2023 and 2024, moving from 2.11 to 2.19, but this was followed by another decrease in 2025.
- The consistent decrease in asset turnover suggests that the Aeronautics segment is requiring a greater investment in assets to achieve each dollar of sales. This could be due to several factors, including investments in long-term projects, increased working capital requirements, or a shift towards more capital-intensive products.
The increasing asset base, coupled with the declining asset turnover, warrants further investigation to determine the underlying drivers and assess the long-term implications for the segment’s profitability and efficiency.
Segment Asset Turnover: Missiles and Fire Control (MFC)
Lockheed Martin Corp.; Missiles and Fire Control (MFC); segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 15,318) | 13,486) | 11,941) | 11,944) | 12,311) |
| Assets | 6,304) | 5,952) | 5,703) | 5,788) | 5,243) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 2.43 | 2.27 | 2.09 | 2.06 | 2.35 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales ÷ Assets
= 15,318 ÷ 6,304 = 2.43
The Missiles and Fire Control (MFC) segment experienced fluctuating sales and asset levels between 2021 and 2025. These movements resulted in corresponding changes in the segment asset turnover ratio.
- Sales Trend
- Sales for the MFC segment decreased from US$12,311 million in 2021 to US$11,944 million in 2022, representing a slight contraction. Sales remained relatively stable at US$11,941 million in 2023 before increasing to US$13,486 million in 2024 and further to US$15,318 million in 2025. This indicates a positive sales growth trajectory in the latter part of the analyzed period.
- Asset Trend
- The value of assets within the MFC segment increased from US$5,243 million in 2021 to US$5,788 million in 2022. A minor decrease was observed in 2023, with assets totaling US$5,703 million. Assets continued to rise in 2024 to US$5,952 million and reached US$6,304 million in 2025. The overall trend suggests a gradual increase in asset investment within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio decreased from 2.35 in 2021 to 2.06 in 2022, coinciding with the initial sales decline and asset increase. A slight recovery to 2.09 was noted in 2023. The ratio then improved to 2.27 in 2024 and further to 2.43 in 2025, aligning with the observed sales growth. This indicates that the segment is becoming more efficient in generating sales from its asset base as sales increase.
The increasing asset turnover ratio in the final two years of the period suggests improved operational efficiency within the MFC segment. The segment appears to be effectively utilizing its assets to generate revenue, particularly as sales have increased. The initial decline in the ratio in 2022 warrants consideration, but the subsequent recovery and improvement suggest this was a temporary fluctuation.
Segment Asset Turnover: Rotary and Mission Systems (RMS)
Lockheed Martin Corp.; Rotary and Mission Systems (RMS); segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 19,683) | 19,584) | 18,364) | 18,078) | 18,684) |
| Assets | 16,576) | 17,025) | 17,521) | 17,988) | 17,664) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.19 | 1.15 | 1.05 | 1.01 | 1.06 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales ÷ Assets
= 19,683 ÷ 16,576 = 1.19
The Rotary and Mission Systems segment demonstrates a generally positive trend in asset turnover from 2021 to 2025. While sales experienced some fluctuation, the segment consistently maintained a substantial asset base, resulting in a gradually improving efficiency in asset utilization.
- Sales Performance
- Sales for the segment decreased from US$18,684 million in 2021 to US$18,078 million in 2022, representing a decline. However, sales recovered to US$18,364 million in 2023 and continued to increase, reaching US$19,584 million in 2024 and US$19,683 million in 2025. This indicates a recovery and subsequent growth in sales revenue over the period.
- Asset Levels
- The segment’s asset base decreased steadily from US$17,664 million in 2021 to US$16,576 million in 2025. This consistent reduction in assets occurred alongside increasing sales in the later years of the period, contributing to the improved asset turnover.
- Segment Asset Turnover
- The segment asset turnover ratio began at 1.06 in 2021, decreased to 1.01 in 2022, and then recovered to 1.05 in 2023. A notable increase was observed in 2024, with the ratio reaching 1.15, and continued to rise to 1.19 in 2025. This upward trend suggests increasing efficiency in generating sales from the segment’s assets. The ratio indicates that for every dollar of assets employed, the segment generated approximately US$1.19 in sales in 2025, compared to US$1.06 in 2021.
The combination of relatively stable sales and a decreasing asset base resulted in a positive trend in segment asset turnover. This suggests improved operational efficiency and a more effective utilization of assets within the Rotary and Mission Systems segment.
Segment Asset Turnover: Space
Lockheed Martin Corp.; Space; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 13,357) | 12,871) | 12,963) | 11,913) | 12,174) |
| Assets | 7,755) | 7,388) | 6,560) | 6,351) | 6,199) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.72 | 1.74 | 1.98 | 1.88 | 1.96 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales ÷ Assets
= 13,357 ÷ 7,755 = 1.72
Analysis of the Space segment reveals fluctuations in both sales and assets over the five-year period. While sales demonstrate an overall increasing trend, asset turnover exhibits a declining pattern. This suggests a potential inefficiency in utilizing assets to generate revenue within the segment, despite growing sales figures.
- Sales Trend
- Sales within the Space segment experienced a slight decrease from US$12,174 million in 2021 to US$11,913 million in 2022. However, sales rebounded and increased to US$12,963 million in 2023, followed by US$12,871 million in 2024, and further growth to US$13,357 million in 2025. This indicates a generally positive trajectory in revenue generation for the segment.
- Asset Trend
- Total assets allocated to the Space segment have consistently increased throughout the period. From US$6,199 million in 2021, assets grew to US$6,351 million in 2022, US$6,560 million in 2023, US$7,388 million in 2024, and reached US$7,755 million in 2025. This continuous asset accumulation suggests ongoing investment within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio, a measure of efficiency in utilizing assets to generate sales, decreased from 1.96 in 2021 to 1.88 in 2022. A slight recovery was observed in 2023 with a ratio of 1.98, but this was followed by a decline to 1.74 in 2024 and further to 1.72 in 2025. This downward trend indicates that the segment is becoming less efficient in converting its assets into sales revenue. The increasing asset base, coupled with a decreasing turnover ratio, warrants further investigation into the factors driving this trend, such as potential overinvestment in assets or slower sales velocity.
The observed divergence between increasing sales and decreasing asset turnover suggests a need for a more detailed analysis of asset utilization within the Space segment. Management should evaluate the effectiveness of capital allocation and explore strategies to improve the efficiency with which assets are employed to generate revenue.
Segment Capital Expenditures to Depreciation
Lockheed Martin Corp., capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 1.06 | 1.31 | 1.29 | 1.20 | 1.37 |
| Missiles and Fire Control (MFC) | 1.22 | 1.45 | 1.44 | 1.58 | 1.99 |
| Rotary and Mission Systems (RMS) | 1.03 | 1.01 | 1.00 | 1.09 | 1.12 |
| Space | 1.10 | 1.36 | 2.06 | 1.95 | 1.49 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of segment capital expenditures relative to depreciation reveals varying investment patterns across the reporting periods. Generally, the ratios indicate the amount of capital spending for each segment relative to its annual depreciation expense. Values greater than one suggest capital expenditures exceed depreciation, implying investment in growth or replacement of assets, while values less than one suggest depreciation exceeds capital expenditures, potentially indicating asset base decline or efficiency gains.
- Aeronautics
- The Aeronautics segment exhibited a ratio of 1.37 in 2021, decreasing to 1.20 in 2022. A slight recovery to 1.29 in 2023 and 1.31 in 2024 was observed, followed by a decrease to 1.06 in 2025. This suggests initial investment followed by a period of stabilization and then a potential shift towards lower capital expenditure relative to depreciation in the most recent period.
- Missiles and Fire Control (MFC)
- The MFC segment began with a ratio of 1.99 in 2021, representing substantial capital investment relative to depreciation. A consistent downward trend was then noted, decreasing to 1.58 in 2022, 1.44 in 2023, and 1.45 in 2024. The ratio continued to decline, reaching 1.22 in 2025. This indicates a decreasing level of capital expenditure relative to depreciation within this segment over the five-year period.
- Rotary and Mission Systems (RMS)
- The RMS segment maintained a relatively stable ratio, starting at 1.12 in 2021 and fluctuating slightly to 1.09 in 2022, 1.00 in 2023, 1.01 in 2024, and 1.03 in 2025. This suggests a consistent balance between capital expenditures and depreciation within this segment throughout the analyzed period.
- Space
- The Space segment demonstrated a notable increase in its ratio from 1.49 in 2021 to 1.95 in 2022 and further to 2.06 in 2023, indicating significant capital investment. However, a substantial decrease to 1.36 in 2024 and a further decline to 1.10 in 2025 was observed. This suggests a period of heavy investment followed by a considerable reduction in capital expenditure relative to depreciation.
Overall, the trends suggest a dynamic investment landscape across the segments. While some segments, like RMS, exhibit stability, others, such as Space and MFC, demonstrate significant shifts in capital expenditure patterns relative to depreciation. The Aeronautics segment shows a more moderate fluctuation. These changes may reflect evolving strategic priorities, project cycles, or broader economic conditions impacting each segment.
Segment Capital Expenditures to Depreciation: Aeronautics
Lockheed Martin Corp.; Aeronautics; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 503) | 593) | 535) | 461) | 477) |
| PP&E depreciation and software amortization | 474) | 452) | 416) | 383) | 348) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.06 | 1.31 | 1.29 | 1.20 | 1.37 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ PP&E depreciation and software amortization
= 503 ÷ 474 = 1.06
The Aeronautics segment experienced fluctuating capital expenditures and consistently increasing depreciation and amortization over the five-year period. The relationship between these two metrics, as indicated by the segment capital expenditures to depreciation ratio, reveals a generally stable investment pattern with a recent shift.
- Capital Expenditures
- Capital expenditures within the Aeronautics segment demonstrated initial decline from $477 million in 2021 to $461 million in 2022. A subsequent increase was observed, reaching $535 million in 2023 and peaking at $593 million in 2024. The most recent year, 2025, shows a decrease to $503 million, though remaining above the 2021 and 2022 levels.
- PP&E Depreciation and Software Amortization
- PP&E depreciation and software amortization exhibited a consistent upward trend throughout the period. Starting at $348 million in 2021, it increased to $383 million in 2022, $416 million in 2023, $452 million in 2024, and further to $474 million in 2025. This steady increase suggests a growing asset base subject to depreciation.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio began at 1.37 in 2021, decreased to 1.20 in 2022, and then recovered to 1.29 in 2023 and 1.31 in 2024. A notable decline to 1.06 occurred in 2025. This ratio indicates the amount of capital investment relative to the depreciation of existing assets. The decrease in 2025 suggests that capital expenditures are growing at a slower rate than depreciation, or that depreciation is accelerating relative to investment. The values above 1.0 throughout most of the period indicate that the segment generally invests more in capital assets than the annual depreciation expense.
The recent decrease in the capital expenditures to depreciation ratio warrants further investigation to determine if it signals a shift in investment strategy or a change in the asset base composition within the Aeronautics segment.
Segment Capital Expenditures to Depreciation: Missiles and Fire Control (MFC)
Lockheed Martin Corp.; Missiles and Fire Control (MFC); segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 235) | 265) | 252) | 253) | 304) |
| PP&E depreciation and software amortization | 192) | 183) | 175) | 160) | 153) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.22 | 1.45 | 1.44 | 1.58 | 1.99 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ PP&E depreciation and software amortization
= 235 ÷ 192 = 1.22
Analysis of capital expenditures relative to depreciation within the Missiles and Fire Control segment reveals a declining trend over the five-year period. Capital expenditures have fluctuated, while depreciation has consistently increased, resulting in a decreasing ratio of capital expenditures to depreciation.
- Capital Expenditures
- Capital expenditures began at US$304 million in 2021, decreased to US$253 million in 2022, and remained relatively stable at US$252 million in 2023. A slight increase to US$265 million was observed in 2024, followed by a decrease to US$235 million in 2025. This suggests potential cyclicality or project-based investment patterns within the segment.
- PP&E Depreciation and Software Amortization
- Depreciation and amortization exhibited a consistent upward trend throughout the period. Starting at US$153 million in 2021, it increased to US$160 million in 2022, US$175 million in 2023, US$183 million in 2024, and reached US$192 million in 2025. This indicates a growing asset base subject to depreciation.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation decreased from 1.99 in 2021 to 1.22 in 2025. The most significant decline occurred between 2021 and 2022, dropping to 1.58. Subsequent decreases were more gradual, moving from 1.44 in 2023 to 1.45 in 2024, before concluding at 1.22 in 2025. This suggests that investment in new capital assets is not keeping pace with the depreciation of existing assets, potentially indicating a shift towards utilizing existing capacity or a change in investment strategy.
The consistent increase in depreciation alongside fluctuating, and ultimately decreasing, capital expenditures warrants further investigation. The declining ratio could suggest a reliance on existing assets, a change in the nature of investments towards less capital-intensive projects, or potentially deferred maintenance. Continued monitoring of this trend is recommended.
Segment Capital Expenditures to Depreciation: Rotary and Mission Systems (RMS)
Lockheed Martin Corp.; Rotary and Mission Systems (RMS); segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 243) | 230) | 220) | 266) | 279) |
| PP&E depreciation and software amortization | 235) | 227) | 220) | 245) | 250) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.03 | 1.01 | 1.00 | 1.09 | 1.12 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ PP&E depreciation and software amortization
= 243 ÷ 235 = 1.03
The Rotary and Mission Systems segment experienced relatively stable capital expenditure patterns between 2021 and 2025. Capital expenditures decreased from $279 million in 2021 to $220 million in 2023, before modestly increasing to $243 million by 2025. Simultaneously, PP&E depreciation and software amortization exhibited a similar pattern, declining from $250 million in 2021 to $220 million in 2023, and then rising to $235 million in 2025.
- Segment Capital Expenditures to Depreciation
- The segment capital expenditures to depreciation ratio demonstrated a slight downward trend initially, decreasing from 1.12 in 2021 to 1.00 in 2023. This indicates that capital expenditures were approaching the level of depreciation expense. Subsequently, the ratio experienced a modest recovery, reaching 1.03 by 2025. This suggests a slight increase in capital investment relative to the depreciation of existing assets during the latter period. The ratio remained above 1.0 throughout the analyzed period, indicating that the segment consistently invested more in capital assets than the depreciation expense recognized.
The close correlation between capital expenditures and depreciation suggests a consistent approach to maintaining and updating the segment’s asset base. The slight increase in the capital expenditures to depreciation ratio in the final two years of the period may indicate a renewed focus on growth or modernization within the segment.
Overall, the segment’s capital expenditure activity appears to be managed in a deliberate manner, aligning investment with the depreciation of existing assets. The observed fluctuations are relatively minor and do not suggest any significant shifts in investment strategy.
Segment Capital Expenditures to Depreciation: Space
Lockheed Martin Corp.; Space; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 342) | 366) | 455) | 391) | 305) |
| PP&E depreciation and software amortization | 311) | 270) | 221) | 201) | 205) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.10 | 1.36 | 2.06 | 1.95 | 1.49 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ PP&E depreciation and software amortization
= 342 ÷ 311 = 1.10
The segment capital expenditures to depreciation ratio for the Space segment demonstrates a fluctuating pattern over the five-year period. Initial values indicate investment outpacing depreciation, followed by a period of convergence and then a decline.
- Capital Expenditures
- Capital expenditures within the Space segment increased from US$305 million in 2021 to US$391 million in 2022, representing a 28.2% increase. Further growth was observed in 2023, reaching US$455 million. However, expenditures decreased in subsequent years, falling to US$366 million in 2024 and US$342 million in 2025.
- PP&E Depreciation and Software Amortization
- PP&E depreciation and software amortization exhibited a generally increasing trend. From US$205 million in 2021, it remained relatively stable at US$201 million in 2022. A moderate increase to US$221 million was noted in 2023, followed by more substantial increases to US$270 million in 2024 and US$311 million in 2025.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio began at 1.49 in 2021, indicating that capital expenditures were 1.49 times greater than depreciation. This ratio increased to 1.95 in 2022 and peaked at 2.06 in 2023, suggesting a period of significant investment relative to the depreciation of existing assets. A notable decrease occurred in 2024, with the ratio falling to 1.36. This downward trend continued in 2025, with the ratio reaching 1.10, indicating a convergence between capital expenditures and depreciation. The decline suggests a shift towards utilizing existing assets or a potential slowdown in new investments relative to the depreciation base.
The observed trend suggests that while initial years saw substantial investment in the Space segment, recent periods indicate a moderation in capital spending relative to the depreciation of existing assets. This could be due to project completion, a change in investment strategy, or an increase in the depreciation rate of recently acquired assets.
Sales
Lockheed Martin Corp., sales by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 30,638) | 28,995) | 27,777) | 27,236) | 26,967) |
| Missiles and Fire Control (MFC) | 15,318) | 13,486) | 11,941) | 11,944) | 12,311) |
| Rotary and Mission Systems (RMS) | 19,683) | 19,584) | 18,364) | 18,078) | 18,684) |
| Space | 13,357) | 12,871) | 12,963) | 11,913) | 12,174) |
| Intersegment sales | (3,948) | (3,893) | (3,474) | (3,187) | (3,092) |
| Total | 75,048) | 71,043) | 67,571) | 65,984) | 67,044) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall, the reported segment sales demonstrate a general upward trend from 2021 to 2025, though with varying performance across individual segments. Total sales experienced a slight decrease between 2021 and 2022 before recovering and exhibiting consistent growth through 2025. Intersegment sales consistently represent a negative value, increasing in absolute magnitude each year.
- Aeronautics
- The Aeronautics segment shows a consistent upward trend in sales throughout the period, increasing from US$26,967 million in 2021 to US$30,638 million in 2025. This represents a cumulative growth of approximately 13.6% over the five-year period. The segment demonstrates the most stable and positive growth trajectory.
- Missiles and Fire Control (MFC)
- Sales in the Missiles and Fire Control segment decreased slightly from US$12,311 million in 2021 to US$11,944 million in 2022, remaining relatively flat in 2023 at US$11,941 million. However, the segment experienced significant growth in 2024 and 2025, reaching US$15,318 million. This represents a substantial recovery and growth, with a cumulative increase of approximately 24.4% from 2022 to 2025.
- Rotary and Mission Systems (RMS)
- The Rotary and Mission Systems segment experienced a decrease in sales from US$18,684 million in 2021 to US$18,078 million in 2022. Sales recovered modestly in 2023 to US$18,364 million and continued to grow through 2025, reaching US$19,683 million. While showing growth from the 2022 low, the overall growth rate is more moderate compared to Aeronautics and MFC.
- Space
- The Space segment exhibited a slight decrease in sales from US$12,174 million in 2021 to US$11,913 million in 2022. Sales increased in 2023 to US$12,963 million, followed by a slight decrease in 2024 to US$12,871 million, and then a further increase to US$13,357 million in 2025. The segment’s performance is relatively stable, with moderate fluctuations.
- Intersegment Sales
- Intersegment sales are consistently negative, indicating transfers of value between segments. The absolute value of these sales increased each year, from US$3,092 million in 2021 to US$3,948 million in 2025. This suggests a growing level of internal transactions within the company.
In summary, while the Aeronautics segment demonstrates consistent growth, the MFC segment shows a notable recovery after a slight initial decline. RMS and Space segments exhibit more moderate growth patterns. The increasing magnitude of negative intersegment sales warrants further investigation to understand the nature and impact of these internal transactions.
Operating profit
Lockheed Martin Corp., operating profit by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 2,086) | 2,523) | 2,825) | 2,866) | 2,799) |
| Missiles and Fire Control (MFC) | 1,989) | 413) | 1,541) | 1,635) | 1,648) |
| Rotary and Mission Systems (RMS) | 1,323) | 1,921) | 1,865) | 1,673) | 1,798) |
| Space | 1,345) | 1,226) | 1,158) | 1,045) | 1,134) |
| Total | 6,743) | 6,083) | 7,389) | 7,219) | 7,379) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Operating profit exhibited varied performance across reportable segments between 2021 and 2025. Overall, total operating profit demonstrated initial stability followed by a decline and subsequent partial recovery. A segment-specific review reveals differing trajectories contributing to these aggregate results.
- Aeronautics
- Aeronautics experienced a modest increase in operating profit from 2021 to 2022, followed by a gradual decline through 2025. Operating profit decreased from US$2,799 million in 2021 to US$2,086 million in 2025, representing a cumulative decrease of approximately 25.7%. This segment’s performance suggests potential challenges related to program transitions, cost pressures, or shifting priorities.
- Missiles and Fire Control (MFC)
- MFC demonstrated relative stability in operating profit from 2021 to 2023, fluctuating around US$1,600 million. A significant decrease was observed in 2024, with operating profit falling to US$413 million. However, a substantial recovery occurred in 2025, reaching US$1,989 million. This volatility suggests the impact of specific contract awards, program delays, or changes in geopolitical demand. The 2025 result exceeds the 2021 level.
- Rotary and Mission Systems (RMS)
- RMS exhibited a slight decrease in operating profit from 2021 to 2022, followed by an increase in 2023 and 2024. Operating profit peaked at US$1,921 million in 2024 before declining to US$1,323 million in 2025. This segment’s trajectory indicates potential sensitivity to program phasing and contract timing. The 2025 result represents a decrease of approximately 31.1% from the 2024 peak.
- Space
- The Space segment showed a consistent upward trend in operating profit throughout the period. Operating profit increased from US$1,134 million in 2021 to US$1,345 million in 2025, representing a cumulative increase of approximately 18.6%. This sustained growth suggests successful execution of space-related programs and potentially increasing demand in this sector.
Total operating profit remained relatively stable between 2021 and 2023, fluctuating around US$7,300 million. A notable decrease occurred in 2024, falling to US$6,083 million, before a partial recovery to US$6,743 million in 2025. The decline in 2024 was likely influenced by the significant reduction in MFC operating profit and the decrease in Aeronautics, while the 2025 recovery was supported by the rebound in MFC and continued growth in Space.
Capital expenditures
Lockheed Martin Corp., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 503) | 593) | 535) | 461) | 477) |
| Missiles and Fire Control (MFC) | 235) | 265) | 252) | 253) | 304) |
| Rotary and Mission Systems (RMS) | 243) | 230) | 220) | 266) | 279) |
| Space | 342) | 366) | 455) | 391) | 305) |
| Total | 1,323) | 1,454) | 1,462) | 1,371) | 1,365) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Capital expenditures across reportable segments exhibited varied trends between 2021 and 2025. Total capital expenditures initially increased before declining in the most recent period analyzed. A segment-level review reveals differing patterns of investment.
- Aeronautics
- Capital expenditures for the Aeronautics segment demonstrated an initial decline from 477 US$ million in 2021 to 461 US$ million in 2022. This was followed by a period of growth, peaking at 593 US$ million in 2024, before decreasing to 503 US$ million in 2025. The 2024 peak suggests significant investment in this segment, potentially related to new programs or facility upgrades, with a subsequent moderation in 2025.
- Missiles and Fire Control (MFC)
- The MFC segment experienced a decrease in capital expenditures from 304 US$ million in 2021 to 253 US$ million in 2022. Expenditures remained relatively stable at approximately 250 US$ million through 2023, then increased slightly to 265 US$ million in 2024, before declining to 235 US$ million in 2025. This segment’s investment pattern suggests a more conservative approach to capital allocation compared to Aeronautics.
- Rotary and Mission Systems (RMS)
- Capital expenditures in the RMS segment decreased consistently from 279 US$ million in 2021 to 220 US$ million in 2023. A slight increase was observed in 2024, reaching 230 US$ million, followed by a further increase to 243 US$ million in 2025. This indicates a potential stabilization or renewed investment focus towards the end of the analyzed period.
- Space
- The Space segment exhibited a notable increase in capital expenditures from 305 US$ million in 2021 to 455 US$ million in 2023. This was followed by a decrease to 366 US$ million in 2024 and a further decline to 342 US$ million in 2025. The initial growth suggests substantial investment in space-related projects, with subsequent reductions potentially reflecting project completion or a shift in investment priorities.
- Total Capital Expenditures
- Overall, total capital expenditures increased from 1,365 US$ million in 2021 to 1,462 US$ million in 2023, representing a peak in investment. However, expenditures decreased in the subsequent two years, falling to 1,323 US$ million in 2025. This suggests a potential shift in the company’s overall capital allocation strategy or a completion of major investment cycles.
The differing trends across segments highlight varying investment needs and strategic priorities. The Aeronautics and Space segments experienced the most significant fluctuations, while MFC maintained a relatively stable investment level. RMS showed a consistent decline followed by a recent increase. The overall decline in total capital expenditures in the latter years of the period warrants further investigation to understand the underlying drivers.
PP&E depreciation and software amortization
Lockheed Martin Corp., pp&e depreciation and software amortization by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 474) | 452) | 416) | 383) | 348) |
| Missiles and Fire Control (MFC) | 192) | 183) | 175) | 160) | 153) |
| Rotary and Mission Systems (RMS) | 235) | 227) | 220) | 245) | 250) |
| Space | 311) | 270) | 221) | 201) | 205) |
| Total | 1,212) | 1,132) | 1,032) | 989) | 956) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The information presents the annual depreciation and amortization expense for each of the company’s reportable segments, as well as a total, from 2021 through 2025. Overall, total depreciation and amortization expense exhibits a consistent upward trend throughout the period.
- Aeronautics
- Depreciation and amortization within the Aeronautics segment demonstrates a steady increase each year, moving from US$348 million in 2021 to US$474 million in 2025. This represents a cumulative increase of approximately 36.2% over the five-year period, indicating continued investment in, and utilization of, long-lived assets within this segment.
- Missiles and Fire Control (MFC)
- The MFC segment also shows a consistent, though more moderate, increase in depreciation and amortization. Starting at US$153 million in 2021, it rises to US$192 million in 2025, a cumulative increase of roughly 25.5%. This suggests a stable level of capital asset investment and utilization within this segment.
- Rotary and Mission Systems (RMS)
- In contrast to the other segments, RMS displays a decrease in depreciation and amortization from 2021 to 2023, falling from US$250 million to US$220 million. However, the segment experiences a slight recovery in 2024 and 2025, reaching US$235 million. The initial decline may be attributable to asset disposals or changes in estimated useful lives, while the subsequent increase suggests renewed investment or a shift in asset composition.
- Space
- The Space segment exhibits the most significant growth in depreciation and amortization. Beginning at US$205 million in 2021, it increases substantially to US$311 million in 2025, representing a cumulative increase of approximately 51.7%. This substantial rise likely reflects significant capital investments in support of expanding operations and new projects within the Space segment.
- Total Depreciation and Amortization
- Total depreciation and amortization expense increased from US$956 million in 2021 to US$1,212 million in 2025, a cumulative increase of approximately 26.8%. This overall increase is driven primarily by the growth in the Aeronautics and Space segments, partially offset by the fluctuations in the RMS segment.
The observed trends suggest ongoing investment in property, plant, and equipment, as well as software, across most segments. The Space segment’s particularly strong growth warrants further investigation to understand the specific drivers of capital expenditure. The temporary decline and subsequent stabilization in the RMS segment also merit attention.
Assets
Lockheed Martin Corp., assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Aeronautics | 14,673) | 13,223) | 13,167) | 12,055) | 10,756) |
| Missiles and Fire Control (MFC) | 6,304) | 5,952) | 5,703) | 5,788) | 5,243) |
| Rotary and Mission Systems (RMS) | 16,576) | 17,025) | 17,521) | 17,988) | 17,664) |
| Space | 7,755) | 7,388) | 6,560) | 6,351) | 6,199) |
| Total | 45,308) | 43,588) | 42,951) | 42,182) | 39,862) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Total assets increased steadily from 2021 to 2025, growing from US$39.862 billion to US$45.308 billion. While the overall trend is positive, the growth rate appears to be moderating in the later years. A segment-level analysis reveals varying asset trends contributing to this overall pattern.
- Aeronautics
- The Aeronautics segment demonstrated consistent asset growth throughout the period, increasing from US$10.756 billion in 2021 to US$14.673 billion in 2025. This represents a substantial increase, suggesting ongoing investment and expansion within this segment. The rate of increase appears to accelerate in the later years.
- Missiles and Fire Control (MFC)
- Assets in the Missiles and Fire Control segment exhibited initial growth from 2021 to 2022, rising from US$5.243 billion to US$5.788 billion. However, assets subsequently decreased in 2023 to US$5.703 billion before recovering to US$6.304 billion in 2025. This suggests potential fluctuations in investment or project activity within this segment.
- Rotary and Mission Systems (RMS)
- The Rotary and Mission Systems segment experienced a slight increase in assets from 2021 to 2022, moving from US$17.664 billion to US$17.988 billion. Following this, assets in this segment generally declined through 2025, reaching US$16.576 billion. This downward trend warrants further investigation to understand the underlying drivers, such as potential divestitures or project completions.
- Space
- The Space segment showed consistent asset growth, albeit at a more moderate pace than Aeronautics. Assets increased from US$6.199 billion in 2021 to US$7.755 billion in 2025. The most significant increase occurred between 2023 and 2024, rising from US$6.560 billion to US$7.388 billion, indicating a period of substantial investment.
The combined effect of these segment-level trends results in the overall increase in total assets. The Aeronautics and Space segments are the primary drivers of this growth, while the decline in Rotary and Mission Systems assets partially offsets these gains. The relatively stable, but modestly growing, Missiles and Fire Control segment contributes to the overall positive trend.