Lockheed Martin Corporation (LMT): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a company can be a leading force in global security and aerospace? Lockheed Martin Corporation (LMT), with a market cap of around $139.7 billion as of 2024, stands as a giant in the defense sector. Keep reading to explore its fascinating history, understand its ownership structure, and discover how it operates and generates revenue.

Lockheed Martin Corporation (LMT) History

Lockheed Martin's Founding Timeline

Year established

The origins of the company trace back to the early 20th century with the founding of the Loughead Aircraft Manufacturing Company in 1912. However, the formal establishment of the Lockheed Aircraft Corporation occurred in 1926.

Original location

The Loughead Aircraft Manufacturing Company was initially founded in San Francisco, California. Later, the Lockheed Aircraft Corporation was based in Burbank, California.

Founding team members

The Loughead brothers, Allan and Malcolm Loughead (who later changed the spelling of their name to Lockheed), were the primary founders. Robert Gross is also a key figure in the company's history, as he led the group that purchased the Lockheed Aircraft Corporation in 1932 and revitalized it.

Initial capital/funding

Details on the initial capital for the Loughead Aircraft Manufacturing Company are scarce, but it was a relatively small venture. When Robert Gross and his group acquired Lockheed in 1932, they invested approximately $40,000 to save the company from bankruptcy.

Lockheed Martin's Evolution Milestones

Lockheed Martin's Transformative Moments

• World War II Expansion: The surge in demand for military aircraft during World War II dramatically expanded Lockheed's production capabilities and established it as a major defense contractor.
• Cold War Innovation: The Cold War era spurred significant investment in research and development, leading to groundbreaking aircraft like the U-2 and SR-71, which defined the company's technological prowess.
• The 1995 Merger: The merger of Lockheed and Martin Marietta in 1995 was a transformative event, creating a defense industry giant with a broad portfolio of products and services.
• F-35 Program: The development and production of the F-35 Lightning II, despite its challenges and high costs, represents a long-term commitment to advanced military technology and a major source of revenue for the company. As of the fiscal year 2024, the company's net sales were $67.6 billion.

For more insights into the company's financial performance, check out this analysis: Breaking Down Lockheed Martin Corporation (LMT) Financial Health: Key Insights for Investors

Lockheed Martin Corporation (LMT) Ownership Structure

Lockheed Martin Corporation is a publicly traded company, meaning its ownership is distributed among shareholders who buy and sell shares on the open market.

Lockheed Martin's Current Status

Lockheed Martin is a public company, trading on the New York Stock Exchange (NYSE) under the ticker symbol LMT. As a public entity, it is subject to regulatory oversight and reporting requirements, providing transparency to investors and the public. Understanding the company's mission, vision, and core values provides additional context to its operations; you can find more details in Mission Statement, Vision, & Core Values of Lockheed Martin Corporation (LMT).

Lockheed Martin's Ownership Breakdown

The ownership of Lockheed Martin is distributed among a mix of institutional investors, mutual funds, and individual shareholders. These shareholders have varying degrees of influence on the company's decisions, with larger institutional holders often having a more significant impact.

Lockheed Martin's Leadership

Lockheed Martin's leadership team is responsible for setting the strategic direction of the company and overseeing its operations. As of April 2025, key figures include:

• Chairman, President and CEO: James D. Taiclet leads the corporation, setting strategic direction and overseeing operations.
• Executive Vice President & Chief Financial Officer: Jesus Malave manages the company's financial strategy and reporting.
• Executive Vice President of Aeronautics: Gregory M. Ulmer heads the Aeronautics business area.

Lockheed Martin Corporation (LMT) Mission and Values

Lockheed Martin's mission is to deliver innovative solutions and advance scientific frontiers, while its core values emphasize integrity, excellence, and a commitment to customers, employees, and communities.

Lockheed Martin's Core Purpose

Official mission statement

Lockheed Martin's official mission statement is: 'We solve complex challenges, advance scientific discovery and deliver innovative solutions to help our customers keep people safe.'

• They aim to solve complex challenges.
• Advance scientific discovery.
• Deliver innovative solutions.
• Help customers keep people safe.

Vision statement

Lockheed Martin's vision statement is: 'To be the global leader in aerospace, defense, security and related technologies.'

• To be the global leader.
• In aerospace, defense, security and related technologies.

Company slogan/tagline

Lockheed Martin's slogan is 'We Never Forget Who We're Working For.'

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Lockheed Martin Corporation (LMT) How It Works

Lockheed Martin operates as a global aerospace and defense company, engaging in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. The company serves both domestic and international customers with its diverse portfolio.

Lockheed Martin's Product/Service Portfolio

Lockheed Martin's Operational Framework

Lockheed Martin's operations are structured around several key processes:

• Research and Development: Investing heavily in R&D to create cutting-edge technologies and maintain a competitive edge. In 2024, Lockheed Martin's investment in research and development was approximately $1.8 billion.
• Government Contracting: Securing and executing large-scale contracts with the U.S. government and international allies. As of the 2024 fiscal year, approximately 70% of Lockheed Martin’s revenue came from the U.S. government.
• Global Supply Chain Management: Managing a vast network of suppliers to ensure the timely and cost-effective production of complex systems. The supply chain includes over 18,700 suppliers.
• Systems Integration: Integrating various technologies and components into cohesive, functional systems. This involves complex engineering and project management skills.
• Sustainment and Support: Providing long-term maintenance, upgrades, and support services for its products, generating a steady stream of revenue. Sustainment activities accounted for roughly 30% of the company’s sales in 2024.

Lockheed Martin's Strategic Advantages

Lockheed Martin possesses several strategic advantages that contribute to its market leadership:

• Technological Innovation: Continuous investment in R&D enables the company to stay ahead of competitors and deliver advanced solutions.
• Strong Government Relationships: Long-standing relationships with the U.S. Department of Defense and other government agencies provide a steady flow of contracts.
• Scale and Scope: The company’s size and diverse portfolio allow it to offer comprehensive solutions and capture large-scale projects.
• Reputation and Brand: Lockheed Martin's reputation for quality and reliability enhances its ability to win contracts and attract talent.
• Skilled Workforce: Employs over 122,000 people worldwide, including engineers, scientists, and technicians, providing a deep pool of expertise.

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Lockheed Martin Corporation (LMT) How It Makes Money

Lockheed Martin primarily makes money by designing, researching, developing, manufacturing, integrating, and sustaining advanced technology systems, products, and services.

Lockheed Martin's Revenue Breakdown

Lockheed Martin generates revenue from various segments. A breakdown of these segments provides insight into where the company's income originates.

Lockheed Martin's Business Economics

Lockheed Martin's business economics are influenced by several factors:

• Government Contracts: A significant portion of Lockheed Martin's revenue comes from contracts with the U.S. government, particularly the Department of Defense. These contracts often involve long-term agreements for developing and supplying defense systems.
• Technological Innovation: Investing in research and development (R&D) is crucial for maintaining a competitive edge. Lockheed Martin allocates substantial resources to innovate and create advanced technologies.
• Global Demand: Demand for defense products and services from international customers also plays a key role. Lockheed Martin pursues opportunities to sell its products to foreign governments, contributing to its revenue stream.
• Pricing Strategies: The pricing of Lockheed Martin's products and services is influenced by factors such as production costs, technological complexity, and negotiation with customers, especially government entities.

Lockheed Martin's Financial Performance

Key aspects of Lockheed Martin's financial performance include:

• Revenue Growth: Monitoring the year-over-year revenue growth indicates the company's ability to secure new contracts and expand its market presence. For example, in 2024, Lockheed Martin reported net sales of $67.6 billion.
• Profitability: Assessing metrics such as gross margin, operating margin, and net margin reveals how efficiently Lockheed Martin manages its costs and generates profit from its revenue.
• Cash Flow: Analyzing cash flow from operations, investing, and financing activities provides insights into the company's liquidity and financial stability.
• Order Backlog: The size of Lockheed Martin's order backlog indicates future revenue potential. A healthy backlog suggests strong demand for the company's products and services. In 2024, the company reported a backlog of $160.6 billion.

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Lockheed Martin Corporation (LMT) Market Position & Future Outlook

Lockheed Martin's robust market position is underpinned by its expansive government contracts and technological prowess, setting a stable stage for future endeavors. The company navigates a landscape of evolving geopolitical dynamics and technological advancements, poised to leverage its strengths in aerospace and defense.

Competitive Landscape

Opportunities & Challenges

Industry Position

Lockheed Martin holds a prominent position in the aerospace and defense industry, characterized by:

• A leading provider of military aircraft, missile systems, and cybersecurity solutions.
• Strong relationships with the U.S. government and international allies, ensuring a steady stream of contracts.
• Focus on innovation and technological advancements, positioning the company at the forefront of defense technology.

For more detailed insights into Lockheed Martin's financial performance, see: Breaking Down Lockheed Martin Corporation (LMT) Financial Health: Key Insights for Investors