LOCKHEED MARTIN CORP

3 ITEM 1A. Risk Factors 10 ITEM 1B. Unresolved Staff Comments 23 ITEM 1C. Cybersecurity 23 ITEM 2. Properties 24 ITEM 3. Legal Proceedings 25 ITEM 4. Mine Safety Disclosures 25 Information about our Executive Officers 25 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 ITEM 6. [Reserved] 28 ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 29 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 49 ITEM 8. Financial Statements and Supplementary Data 50 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93 ITEM 9A. Controls and Procedures 93 ITEM 9B. Other Information 95 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 95 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 95 ITEM 11. Executive Compensation 95 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 96 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 96 ITEM 14. Principal Accounting Fees and Services 96 PART IV ITEM 15. Exhibits and Financial Statement Schedules 97 ITEM 16. Form 10-K Summary 101 SIGNATURES 102 Table of Contents PART I ITEM 1. Business General We are a global aerospace and defense technology company that builds and sustains the solutions America and its allies need to deter conflict and advance national security and scientific exploration objectives. Our four business areas – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space – work as one company offering integrated solutions, at scale, across all warfighting domains. Our defense, space, intelligence, homeland security, information technology, and cybersecurity capabilities serve U.S. and international customers in defense, civil and commercial applications. Our principal customers are agencies of the U.S. Government and allies. Recent regional conflicts have demonstrated the integral role Lockheed Martin products play in protecting people, and we are rapidly transforming our business to meet increased demand. We are expanding production capacity to continue delivering at scale, and we are harnessing leading-edge technologies like artificial intelligence and autonomy, open-architecture systems, and advanced networking to make defense forces more agile, adaptive and unpredictable. Our goal is to deliver overwhelming capability and value – quickly, at the needed quantities and with the greatest effectiveness – to enable overmatch and strengthen deterrence today and into the future. We achieve this by developing and investing in differentiating technologies, forging strategic partnerships, including with commercial companies, executing on our multi-year business transformation initiative, maintaining fiscal discipline, and continuing to cultivate the greatest aerospace and defense workforce talent and culture in the world. We invest substantially in our people to ensure that our people have the technical skills necessary to succeed, and we expect to continue to invest internally in innovative technologies that address rapidly evolving mission requirements for our customers. We also will continue to evaluate our organizational structure and portfolio and will make strategic changes, acquisitions or divestitures, as appropriate, while deepening our connection to commercial industry through cooperative partnerships, joint ventures and equity investments. Business Segments We operate in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. We organize our business segments based on the nature of the products and services offered. Aeronautics Aeronautics is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Aeronautics also has contracts with the U.S. Government for various classified programs. Aeronautics' major programs include: • F-35 Lightning II – international multi-role, multi-variant, fifth generation stealth fighter. • C-130 Hercules – international tactical airlifter. • F-16 Fighting Falcon – combat-proven, international multi-role fighter. • F-22 Raptor – air dominance and multi-role fifth generation stealth fighter. The F-35 program is our largest program, generating 27% of our total consolidated sales, as well as 67% of Aeronautics' sales in 2025. The F-35 program consists of multiple development, production and sustainment contracts. Development is focused on modernizing F-35's capability and addressing emerging threats. Sustainment provides logistics and training support for the aircraft delivered to F-35 customers. Aircraft production is expected to continue well into the future gi