Lockheed Martin Corp. (NYSE:LMT)

Total assets exhibited an overall increasing trend from 2021 to 2025. However, adjusted total assets reveal a more nuanced picture, indicating a consistent gap between reported and adjusted figures. The difference between the two metrics appears to be widening over the observed period.

Total Asset Trend

Total assets increased from US$50,873 million in 2021 to US$59,840 million in 2025, representing a cumulative growth of approximately 17.6%. Growth was not linear; a slight decrease was noted between 2022 and 2023, followed by more substantial increases in 2024 and 2025.

Adjusted Total Asset Trend

Adjusted total assets also increased over the period, moving from US$48,583 million in 2021 to US$56,865 million in 2025, a cumulative growth of roughly 17.1%. Similar to total assets, adjusted total assets experienced a minor decline between 2022 and 2023 before accelerating growth in subsequent years.

Difference Between Metrics

In 2021, the difference between total assets and adjusted total assets was US$2,290 million. This difference expanded to US$2,975 million in 2022, then slightly contracted to US$2,953 million in 2023. The gap widened considerably in 2024 to US$3,557 million and further increased to US$3,000 million in 2025. This suggests that adjustments are becoming more significant relative to the overall asset base.

The consistent presence of adjustments to total assets warrants further investigation to understand the nature of these adjustments and their potential impact on financial performance and position. The increasing magnitude of the difference between the two metrics suggests a growing divergence between reported and economically representative asset values.

Total liabilities and adjusted total liabilities for the period exhibited a consistent upward trend from 2021 through 2025. The values for both metrics are remarkably close across all reported years, suggesting the adjustments made are immaterial in terms of overall magnitude.

Overall Trend

Both total liabilities and adjusted total liabilities increased each year. Total liabilities grew from US$39,914 million in 2021 to US$53,119 million in 2025, representing a cumulative increase of approximately 33.3%. Adjusted total liabilities mirrored this growth, rising from US$39,906 million to US$53,101 million, a cumulative increase of roughly 33.3% as well.

Adjustment Magnitude

The difference between total liabilities and adjusted total liabilities remains consistently small throughout the observed period. In 2021, the adjustment was US$8 million. In 2022, it was US$5 million. In 2023, the adjustment was US$10 million. In 2024, it was US$24 million, and in 2025, it was US$18 million. These relatively minor adjustments indicate that the changes are not substantially altering the overall liability position.

Year-over-Year Growth

The year-over-year growth in both metrics was positive each year. From 2021 to 2022, total liabilities increased by approximately 9.3%, while adjusted total liabilities increased by 9.2%. From 2022 to 2023, the growth rate slowed to around 4.6% for both metrics. Growth accelerated again from 2023 to 2024, reaching approximately 7.9% for both. Finally, from 2024 to 2025, growth continued at approximately 7.8% for both total and adjusted liabilities.

The consistent and parallel increases in both total and adjusted liabilities, coupled with the small adjustment amounts, suggest a stable and predictable liability structure. Further investigation into the nature of the adjustments would be required to understand their specific impact, but based solely on these figures, they do not appear to be materially significant.

Stockholders’ equity exhibited a declining trend over the five-year period. Beginning at US$10,959 million in 2021, it decreased to US$6,721 million by 2025. This represents an overall reduction of approximately 38.6% in the reported equity position. A parallel decline is observed in adjusted stockholders’ equity, which decreased more substantially over the same timeframe.

Overall Equity Trend

Reported stockholders’ equity decreased from US$10,959 million in 2021 to US$9,266 million in 2022, a reduction of 15.5%. The decline accelerated in 2023, falling to US$6,835 million, representing a 26.1% decrease from the 2021 level. A further decrease was noted in 2024, reaching US$6,333 million, before a modest recovery to US$6,721 million in 2025.

Adjusted Equity Trend

Adjusted stockholders’ equity experienced a more pronounced decrease. Starting at US$8,677 million in 2021, it fell to US$5,527 million in 2022, a decrease of 36.3%. The decline continued in subsequent years, reaching US$3,892 million in 2023 and US$2,800 million in 2024. A partial recovery was observed in 2025, with adjusted equity increasing to US$3,764 million, though remaining significantly below the 2021 level.

Relationship Between Reported and Adjusted Equity

The difference between reported and adjusted stockholders’ equity widened considerably between 2021 and 2024. In 2021, adjusted equity represented approximately 79.2% of reported equity. By 2024, this proportion had fallen to approximately 44.2%. The narrowing gap in 2025, with adjusted equity at 56.0% of reported equity, suggests a potential stabilization, although the adjusted equity remains substantially lower than its initial value.

The consistent decline in both reported and adjusted stockholders’ equity warrants further investigation to understand the underlying causes. The more significant reduction in adjusted equity suggests the presence of adjustments that materially impact the reported equity position. These adjustments could relate to various factors, including accumulated other comprehensive income, unrealized gains or losses, or other equity-related items.

Over the five-year period ending December 31, 2025, reported total debt exhibits a consistent upward trend, increasing from US$11,676 million to US$21,700 million. Stockholders’ equity, conversely, demonstrates a declining trend from 2021 to 2023, followed by a period of stabilization and slight recovery. Total reported capital initially increases before experiencing a decrease in 2023, then resuming an upward trajectory.

Adjusted figures reveal similar patterns, though with differing magnitudes. Adjusted total debt also increases steadily throughout the period, mirroring the trend in reported debt. Adjusted stockholders’ equity shows a more pronounced decline than its reported counterpart, reaching a low in 2024 before a modest increase in 2025. Adjusted total capital displays a more subdued growth pattern compared to reported total capital.

Debt Composition

The difference between reported and adjusted total debt widens over time, indicating increasing adjustments are being made to the initially reported debt figures. This suggests potential reclassifications or recognition of previously unrecorded liabilities. The adjustments range from US$1,400 million in 2021 to US$1,071 million in 2025.

Equity Trends

The decline in stockholders’ equity is more substantial when considering the adjusted figures. The difference between reported and adjusted equity grows significantly, particularly between 2021 and 2024, suggesting substantial adjustments related to items impacting equity, such as accumulated other comprehensive income or potentially changes in equity accounting methods. The adjusted equity figures are consistently lower than the reported figures.

Capital Structure Shifts

The adjusted total capital figure remains relatively stable between 2022 and 2023, while the reported total capital decreases. This divergence suggests that adjustments to debt and equity offset each other during this period. The overall trend indicates a growing reliance on debt financing relative to equity, as evidenced by the larger increases in adjusted total debt compared to adjusted stockholders’ equity.

The gap between reported and adjusted figures for all items suggests the presence of significant accounting adjustments impacting both the liability and equity sides of the balance sheet. Further investigation into the nature of these adjustments would be necessary to fully understand their implications for the company’s financial position.

Net earnings exhibited volatility over the five-year period. Reported net earnings decreased from US$6,315 million in 2021 to US$5,732 million in 2022, before increasing to US$6,920 million in 2023. A subsequent decline was observed in 2024, with net earnings falling to US$5,336 million, and this downward trend continued into 2025, reaching US$5,017 million.

Adjusted net earnings presented a different pattern. While starting at a significantly higher value of US$11,247 million in 2021, adjusted net earnings experienced a substantial decrease in 2022, falling to US$7,958 million. This decline continued through 2023, reaching US$5,642 million, and persisted in 2024 with a value of US$5,099 million. A modest increase was noted in 2025, with adjusted net earnings rising to US$6,299 million, though remaining below levels seen in earlier years.

Relationship between Reported and Adjusted Net Earnings

The difference between reported and adjusted net earnings was considerable, particularly in 2021 and 2022. The adjustments added approximately US$4,932 million to net earnings in 2021 and US$2,226 million in 2022. This difference narrowed in subsequent years, suggesting a change in the nature or magnitude of the adjustments being made. In 2023, the adjustment added approximately US$1,278 million, and in 2024, approximately US$763 million. The adjustment in 2025 was approximately US$1,282 million.

Trends in Adjustments

The magnitude of adjustments to net earnings decreased significantly from 2021 to 2024. While a slight increase in the adjustment amount was observed between 2024 and 2025, the overall trend indicates a reduction in the impact of these adjustments on the final reported earnings figure. This could indicate a change in accounting practices, the resolution of one-time events, or a shift in the underlying business operations.

The divergence between the trends in reported and adjusted net earnings suggests that the adjustments are playing an increasingly important role in understanding the company’s underlying profitability. Further investigation into the specific nature of these adjustments would be necessary to fully assess their impact and implications.