What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-07-23 compared with 2026-04-23 · 212 added, 100 removed, 521 unchanged (37% of the section changed)

3 unchanged sentences

in millions, except per share data)

Quarters Ended

2026 March 30,

Quarters Ended Six Months Ended

2026 June 29,

2025 June 28,

2026 June 29,

Products $ 16,783 $ 15,149 $ 31,614 $ 30,085

4 unchanged sentences

Services ( 2,862 ) ( 3,130 ) ( 5,646 ) ( 5,770 )

Impairment and other charges — ( 66 ) — ( 66 )

Other unallocated, net 308 244 547 528

1 unchanged sentence

Gross profit 2,446 734 4,524 3,057

Other (expense) income, net ( 15 ) 49

Other income, net 33 14 18 63

Operating profit 2,479 748 4,542 3,120

12 unchanged sentences

Consolidated Statements of Comprehensive Income

Quarters Ended

2026 March 30,

Quarters Ended Six Months Ended

2026 June 29,

2025 June 28,

2026 June 29,

Net earnings $ 1,836 $ 342 $ 3,324 $ 2,054

1 unchanged sentence

Retirement benefits

Amortization of net actuarial losses and prior service costs, net of tax of $ 16 million in 2026 and $ 17 million in 2025

Other, net of tax of $ 1 million in 2026 and $ 6 million in 2025

Amortization of net actuarial losses and prior service costs, net of tax of $ 17 million and $ 33 million in 2026 and $ 18 million and $ 35 million in 2025

62 64 124 128

Other, net of tax of $ 4 million and $ 5 million in 2026 and $ 9 million and $ 15 million in 2025

( 34 ) 102 ( 50 ) 167

Other comprehensive income, net of tax 28 166 74 295

40 unchanged sentences

Consolidated Statements of Cash Flows

Quarters Ended

2026 March 30,

Six Months Ended

2026 June 29,

Operating activities

4 unchanged sentences

Deferred income taxes 538 ( 561 )

Impairment and other charges — 66

Reach-forward losses on select programs — 1,615

Qualified defined benefit pension plans 184 223

14 unchanged sentences

Repayments of long-term debt ( 1,168 ) ( 142 )

Proceeds from commercial paper, net — 1,449

Repurchases of common stock — ( 1,250 )

8 unchanged sentences

Consolidated Statements of Equity

For the Quarters Ended June 28, 2026 and June 29, 2025

Stock Additional

2 unchanged sentences

Comprehensive

Balance at December 31, 2025 $ 229 $ — $ 14,034 $ ( 7,542 ) $ 6,721

Balance at March 29, 2026 $ 230 $ 32 $ 14,723 $ ( 7,496 ) $ 7,489

Net earnings — — 1,836 — 1,836

3 unchanged sentences

Stock-based awards, ESOP activity and other — 215 — — 215

Balance at June 28, 2026 $ 230 $ 247 $ 15,759 $ ( 7,468 ) $ 8,768

Balance at March 30, 2025 $ 233 $ — $ 14,773 $ ( 8,323 ) $ 6,683

Net earnings — — 342 — 342

Other comprehensive income, net of tax — — — 166 166

Dividends declared ($ 3.30 per share)

— — ( 1,546 ) — ( 1,546 )

Repurchases of common stock ( 1 ) ( 189 ) ( 310 ) — ( 500 )

Stock-based awards, ESOP activity and other — 189 — — 189

Balance at June 29, 2025 $ 232 $ — $ 13,259 $ ( 8,157 ) $ 5,334

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Lockheed Martin Corporation

Consolidated Statements of Equity

For the Six Months Ended June 28, 2026 and June 29, 2025

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Balance at December 31, 2025 $ 229 $ — $ 14,034 $ ( 7,542 ) $ 6,721

3 unchanged sentences

— — ( 1,599 ) — ( 1,599 )

Stock-based awards, ESOP activity and other

1 247 — — 248

Balance at June 28, 2026 $ 230 $ 247 $ 15,759 $ ( 7,468 ) $ 8,768

Balance at December 31, 2024 $ 234 $ — $ 14,551 $ ( 8,452 ) $ 6,333

Net earnings — — 2,054 — 2,054

Other comprehensive income, net of tax — — — 295 295

Dividends declared ($ 6.60 per share)

— — ( 2,324 ) — ( 2,324 )

Repurchases of common stock ( 3 ) ( 225 ) ( 1,022 ) — ( 1,250 )

Stock-based awards, ESOP activity and other

Balance at March 30, 2025 $ 233 $ — $ 14,773 $ ( 8,323 ) $ 6,683

1 225 — — 226

Balance at June 29, 2025 $ 232 $ — $ 13,259 $ ( 8,157 ) $ 5,334

The accompanying notes are an integral part of these unaudited consolidated financial statements.

19 unchanged sentences

We eliminate intercompany balances and transactions in consolidation.

Additionally, as of March 29, 2026, we changed the presentation of capitalized software to be included in property, plant and equipment, net on our consolidated balance sheets.

Amounts for December 31, 2025 have been conformed to the current period’s presentation.

We close our books and records on the last Sunday of each interim calendar quarter, which was on March 29 for the first quarter of 2026 and March 30 for the first quarter of 2025, to align our financial closing with our business processes.

We close our books and records on the last Sunday of each interim calendar quarter, which was on June 28 for the second quarter of 2026 and June 29 for the second quarter of 2025, to align our financial closing with our business processes.

The consolidated financial statements and tables of financial information included herein are labeled based on that convention.

5 unchanged sentences

The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions):

Quarters Ended

2026 March 30,

Quarters Ended Six Months Ended

2026 June 29,

2025 June 28,

2026 June 29,

Weighted average common shares outstanding for basic computations 230.2 233.5 230.1 234.0

Weighted average dilutive effect of equity awards

0.9 0.8 1.0 0.8

Weighted average common shares outstanding for diluted computations

231.1 234.3 231.1 234.8

We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented.

Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs) based on the treasury stock method.

There were no significant anti-dilutive equity awards during the quarters ended March 29, 2026 and March 30, 2025.

Basic and diluted weighted average common shares outstanding decreased in 2026 compared to 2025 due to share repurchases in 2025, but none during the quarter ended March 29, 2026.

There were no significant anti-dilutive equity awards during the quarters and six months ended June 28, 2026 and June 29, 2025.

Basic and diluted weighted average common shares outstanding decreased in 2026 compared to 2025 due to share repurchases in the second half of 2025, but none during the quarter and six months ended June 28, 2026.

NOTE 3 - INFORMATION ON BUSINESS SEGMENTS

3 unchanged sentences

Summary operating results for each of our business segments were as follows (in millions):

Quarters Ended

2026 March 30,

Quarters Ended Six Months Ended

2026 June 29,

2025 June 28,

2026 June 29,

Aeronautics $ 8,112 $ 7,420 $ 15,065 $ 14,477

3 unchanged sentences

Total sales $ 20,063 $ 18,155 $ 38,084 $ 36,118

Operating costs and expenses

Other segment items (a)

Aeronautics $ 7,352 $ 7,518 $ 13,686 $ 13,855

2 unchanged sentences

Space 3,125 2,945 6,272 5,771

Total operating costs and expenses $ 16,182 $ 15,924

Operating profit (a)

Total other segment items $ 17,901 $ 17,584 $ 34,099 $ 33,462

Operating profit (loss)

Aeronautics $ 760 $ ( 98 ) $ 1,379 $ 622

5 unchanged sentences

FAS/CAS pension operating adjustment $ 422 $ 379 $ 843 $ 758

Impairment and other charges

— ( 66 ) — ( 66 )

Intangible asset amortization expense ( 50 ) ( 63 ) ( 100 ) ( 127 )

6 unchanged sentences

Rotary and Mission Systems 662 632 1,257 1,198

Space 79 84 160 167

Total intersegment sales $ 1,105 $ 1,044 $ 2,112 $ 1,949

(a) Operating profit by segment includes certain immaterial items, such as other income (primarily equity earnings) that are not presented separately in the table.

Accordingly, the difference between sales less operating costs and expenses may not equal operating profit by segment.

(a) Other segment items include operating costs and expenses plus certain immaterial items, such as other income (primarily equity earnings).

Segment results exclude intersegment transactions as these activities are eliminated in consolidation and are not considered in assessing the performance of each segment.

16 unchanged sentences

The total FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension expense for our qualified defined benefit pension plans, were as follows (in millions):

Quarters Ended

2026 March 30,

Quarters Ended Six Months Ended

2026 June 29,

2025 June 28,

2026 June 29,

Total FAS pension expense and CAS cost

12 unchanged sentences

Sales by products and services, contract type, customer, and geographic region were as follows (in millions):

Quarter Ended March 29, 2026

Quarter Ended June 28, 2026

Aeronautics MFC RMS Space Total

19 unchanged sentences

Total sales $ 8,112 $ 4,101 $ 4,354 $ 3,496 $ 20,063

Quarter Ended March 30, 2025

Six Months Ended June 28, 2026

Aeronautics MFC RMS Space Total

19 unchanged sentences

Total sales $ 15,065 $ 7,750 $ 8,345 $ 6,924 $ 38,084

Quarter Ended June 29, 2025

Aeronautics MFC RMS Space Total

Products $ 5,960 $ 3,065 $ 3,332 $ 2,792 $ 15,149

Services 1,460 368 663 515 3,006

Total sales $ 7,420 $ 3,433 $ 3,995 $ 3,307 $ 18,155

Sales by contract type

Fixed-price $ 4,912 $ 2,447 $ 2,295 $ 912 $ 10,566

Cost-reimbursable 2,508 986 1,700 2,395 7,589

Total sales $ 7,420 $ 3,433 $ 3,995 $ 3,307 $ 18,155

Sales by customer

Government $ 4,646 $ 2,440 $ 2,858 $ 3,227 $ 13,171

International (a)

2,766 990 1,085 75 4,916

commercial and other 8 3 52 5 68

Total sales $ 7,420 $ 3,433 $ 3,995 $ 3,307 $ 18,155

Sales by geographic region

United States $ 4,654 $ 2,443 $ 2,910 $ 3,232 $ 13,239

Europe 1,404 381 279 22 2,086

Asia Pacific 984 223 601 49 1,857

Middle East 159 375 219 4 757

Other 219 11 ( 14 ) — 216

Total sales $ 7,420 $ 3,433 $ 3,995 $ 3,307 $ 18,155

Six Months Ended June 29, 2025

Aeronautics MFC RMS Space Total

Products $ 11,706 $ 6,082 $ 6,828 $ 5,469 $ 30,085

Services 2,771 724 1,495 1,043 6,033

Total sales $ 14,477 $ 6,806 $ 8,323 $ 6,512 $ 36,118

Sales by contract type

Fixed-price $ 9,625 $ 4,887 $ 4,955 $ 1,854 $ 21,321

Cost-reimbursable 4,852 1,919 3,368 4,658 14,797

Total sales $ 14,477 $ 6,806 $ 8,323 $ 6,512 $ 36,118

Sales by customer

Government $ 9,288 $ 4,831 $ 5,645 $ 6,356 $ 26,120

International (a)

5,171 1,968 2,553 146 9,838

commercial and other 18 7 125 10 160

Total sales $ 14,477 $ 6,806 $ 8,323 $ 6,512 $ 36,118

Sales by geographic region

United States $ 9,306 $ 4,838 $ 5,770 $ 6,366 $ 26,280

Europe 2,651 776 583 44 4,054

Asia Pacific 1,824 447 1,234 96 3,601

Middle East 307 717 431 6 1,461

Other 389 28 305 — 722

Total sales $ 14,477 $ 6,806 $ 8,323 $ 6,512 $ 36,118

(a) International sales include foreign military sales (FMS) contracted through the U.S.

1 unchanged sentence

Our Aeronautics business segment includes our largest program, the F-35 Lightning II, an international multi-role, multi-variant, stealth fighter aircraft.

Sales for the F-35 program represented approximately 27 % and 25 % of our total consolidated sales for the quarters ended March 29, 2026 and March 30, 2025.

Sales for the F-35 program represented approximately 28 % and 27 % of our total consolidated sales for the quarters and six months ended both June 28, 2026 and June 29, 2025.

Total assets for each of our business segments were as follows (in millions):

8 unchanged sentences

Total assets $ 62,450 $ 59,840

(a) Corporate assets primarily include cash and cash equivalents, deferred income taxes, assets for the portion of environmental costs that are probable of future recovery, property, plant and equipment used in our corporate operations, assets held in a trust for deferred compensation plans, and other marketable investments.

(a) Corporate assets primarily include cash and cash equivalents, deferred income taxes, assets held in a trust for deferred compensation plans, capitalized software, assets for the portion of environmental costs that are probable of future recovery, property, plant and equipment used in our corporate operations, and other marketable investments.

NOTE 4 - CONTRACT ASSETS AND LIABILITIES

5 unchanged sentences

These assets are primarily driven by the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations for which we have not yet billed our customers.

During the quarter ended March 29, 2026, contract assets increased $ 2.9 billion primarily due to the F-35 program at Aeronautics.

There were no significant credit or impairment losses related to our contract assets during the quarters ended March 29, 2026 and March 30, 2025.

During the six months ended June 28, 2026, contract assets increased $ 3.0 billion primarily due to the F-35 program at Aeronautics and tactical and strike missiles at MFC.

There were no significant credit or impairment losses related to our contract assets during the quarters and six months ended June 28, 2026 and June 29, 2025.

Contract liabilities include advance payments and billings in excess of revenue recognized.

These liabilities decreased $ 705 million during the quarter ended March 29, 2026, primarily due to revenue recognized in excess of payments received on performance obligations (primarily for integrated air and missile defense programs at MFC).

During the quarter ended March 29, 2026, we recognized $ 3.0 billion of our contract liabilities at December 31, 2025 as revenue.

During the quarter ended March 30, 2025, we recognized $ 3.2 billion of our contract liabilities at December 31, 2024 as revenue.

These liabilities increased $ 711 million during the six months ended June 28, 2026, primarily due to payment received in excess of revenue recognized on performance obligations (primarily for the F-16 program at Aeronautics).

During the quarter and six months ended June 28, 2026, we recognized $ 1.8 billion and $ 4.8 billion of our contract liabilities at December 31, 2025 as revenue.

During the quarter and six months ended June 29, 2025, we recognized $ 1.3 billion and $ 4.5 billion of our contract liabilities at December 31, 2024 as revenue.

NOTE 5 - INVENTORIES

7 unchanged sentences

These advance procurement costs are generally incurred in order to enhance our ability to achieve schedule and certain customer milestones.

Pre-contract costs that are initially capitalized in inventory are eventually generally recognized as operating costs consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract.

Pre-contract costs that are initially capitalized in inventory generally are eventually recognized as operating costs consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract.

All other pre-contract costs, including start-up costs, are expensed as incurred.

As of March 29, 2026 and December 31, 2025, $ 1.9 billion and $ 1.5 billion of pre-contract costs (primarily the F-35 program and classified contracts at Aeronautics and Sikorsky programs at RMS) were included in work-in-process inventories.

As of June 28, 2026 and December 31, 2025, $ 1.9 billion and $ 1.5 billion of pre-contract costs (primarily the classified contracts, F-35 program and F-16 program at Aeronautics and Sikorsky programs at RMS) were included in work-in-process inventories.

NOTE 6 - RETIREMENT BENEFITS

The pretax FAS pension expense related to our qualified defined benefit pension plans consisted of the following (in millions):

Quarters Ended

2026 March 30,

Pretax FAS pension expense related to our qualified defined benefit pension plans consisted of the following (in millions):

Quarters Ended Six Months Ended

2026 June 29,

2025 June 28,

2026 June 29,

Qualified defined benefit pension plans

10 unchanged sentences

We record the service cost component of FAS pension expense for our qualified defined benefit pension plans in consolidated operating profit and the non-service components in non-service FAS pension expense on our consolidated statements of earnings.

Total FAS income for our other retirement benefit plans was not material during the quarters ended March 29, 2026 and March 30, 2025 and is part of other non-operating income, net on our consolidated statements of earnings.

Total FAS income for our other retirement benefit plans was not material during the quarters and six months ended June 28, 2026 and June 29, 2025 and is part of other non-operating income, net on our consolidated statements of earnings.

The required funding of our qualified defined benefit pension plans is determined in accordance with the Employee Retirement Income Security Act of 1974 (ERISA), as amended, along with consideration of CAS and Internal Revenue Code rules.

We made no contributions to our qualified defined benefit pension plans during the quarters ended March 29, 2026 and March 30, 2025.

We made no contributions to our qualified defined benefit pension plans during the quarters and six months ended June 28, 2026 and June 29, 2025.

NOTE 7 - LEGAL PROCEEDINGS AND CONTINGENCIES

10 unchanged sentences

Plaintiffs seek unspecified losses allegedly caused by alleged misstatements about certain classified programs in the Aeronautics and MFC business segments and F-35 program, which were allegedly revealed to be false when we announced estimated losses relating to certain of those programs.

In addition, based on allegations substantially similar to the above-described securities class action, on September 11, 2025, a shareholder derivative complaint was filed in the United States District Court for the District of Maryland against current and former members of our Board of Directors and senior management.

Separately, based on allegations substantially similar to the above-described securities class action, shareholder derivative complaints were filed in the United States District Court for the District of Maryland on September 11, 2025 and May 18, 2026, against current and former members of our Board of Directors and senior management.

We are named as a nominal defendant.

The derivative complaint asserts claims under Sections 14(a), 20(a), and 10(b) of the Exchange Act, as well as claims for breach of fiduciary duty, abuse of control, gross mismanagement, corporate waste, unjust enrichment, and contribution.

Together, the derivative complaints assert claims under Sections 14(a), 20(a), and 10(b) of the Exchange Act, as well as claims for breach of fiduciary duty, abuse of control, gross mismanagement, corporate waste, unjust enrichment, and contribution.

Based on the information available to date, we do not believe that these matters will have a material adverse effect on our results of operations, financial condition, or liquidity.

15 unchanged sentences

These proceedings could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages or non-monetary sanctions or relief.

At March 29, 2026 and December 31, 2025, the aggregate amount of liabilities recorded for environmental remediation matters was $ 656 million and $ 659 million, most of which are recorded in other noncurrent liabilities on our consolidated balance sheets.

We have recorded assets for the portion of environmental costs that are probable of future recovery totaling $ 602 million and $ 605 million at March 29, 2026 and December 31, 2025, most of which are recorded in other noncurrent assets on our consolidated balance sheets.

At June 28, 2026 and December 31, 2025, the aggregate amount of liabilities recorded for environmental remediation matters was $ 652 million and $ 659 million, most of which are recorded in other noncurrent liabilities on our consolidated balance sheets.

We have recorded assets for the portion of environmental costs that are probable of future recovery totaling $ 600 million and $ 605 million at June 28, 2026 and December 31, 2025, most of which are recorded in other noncurrent assets on our consolidated balance sheets.

We continue to pursue claims against other PRPs, including the U.S.

1 unchanged sentence

Under certain of these agreements, the U.S.

Government and/or a private parties reimburse us an amount equal to a percentage, specific to each site, of expenditures for certain remediation activities in their capacity as PRPs under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

Government and/or private parties reimburse us an amount equal to a percentage, specific to each site, of expenditures for certain remediation activities in their capacity as PRPs under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

The timing and extent of remediation costs remain uncertain.

4 unchanged sentences

Letters of credit and surety bonds generally are available for draw down in the event we do not perform.

We had total outstanding letters of credit and surety bonds aggregating $ 3.3 billion and $ 3.5 billion at March 29, 2026 and December 31, 2025.

We had total outstanding letters of credit and surety bonds aggregating $ 3.3 billion and $ 3.5 billion at June 28, 2026 and December 31, 2025.

Other Contingencies

16 unchanged sentences

Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions):

March 29, 2026 December 31, 2025

June 28, 2026 December 31, 2025

Total Level 1 Level 2 Total Level 1 Level 2

9 unchanged sentences

The fair values of derivative instruments, which consist of foreign currency forward contracts, including embedded derivatives, and interest rate swap contracts, are primarily determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates, credit spreads and foreign currency exchange rates.

We also make investments in companies that we believe are advancing or developing new technologies applicable to our business.

These investments are primarily in early-stage companies and may be in the form of common or preferred stock, warrants, convertible debt securities, investments in funds or other investments.

Most of these investments are in securities without readily determinable fair values (privately held securities), which are measured initially at cost and are then adjusted to fair value only if there is an observable price change or reduced for impairment, if applicable.

The carrying amounts of the investments were $ 736 million and $ 669 million at March 29, 2026 and December 31, 2025.

Net gains or losses recorded due to adjustments in valuation and/or sales of investments were not material for the quarters ended March 29, 2026 and March 30, 2025.

We use derivative instruments principally to reduce our exposure to market risks from changes in foreign currency exchange rates and interest rates.

11 unchanged sentences

We also may enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting, which are intended to minimize certain economic exposures.

The aggregate notional amount of our outstanding interest rate swaps was $ 1.3 billion at both March 29, 2026 and December 31, 2025.

The aggregate notional amount of our outstanding foreign currency hedges was $ 7.3 billion and $ 7.2 billion at March 29, 2026 and December 31, 2025.

The fair values of our outstanding interest rate swaps and foreign currency hedges at March 29, 2026 and December 31, 2025 were not significant.

Derivative instruments did not have a material impact on net earnings and comprehensive income during the quarters ended March 29, 2026 and March 30, 2025.

The aggregate notional amount of our outstanding interest rate swaps was $ 1.3 billion at both June 28, 2026 and December 31, 2025.

The aggregate notional amount of our outstanding foreign currency hedges was $ 7.0 billion and $ 7.2 billion at June 28, 2026 and December 31, 2025.

The fair values of our outstanding interest rate swaps and foreign currency hedges at June 28, 2026 and December 31, 2025 were not significant.

Derivative instruments did not have a material impact on net earnings and comprehensive income during the quarters and six months ended June 28, 2026 and June 29, 2025.

The impact of derivative instruments on our consolidated statements of cash flows is included in net cash provided by operating activities.

Substantially all of our derivatives are designated for hedge accounting.

In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable, commercial paper and debt.

In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable and debt.

The carrying amounts for cash and cash equivalents, receivables and accounts payable approximated their fair values.

The estimated fair value of our outstanding debt was $ 20.4 billion and $ 22.0 billion at March 29, 2026 and December 31, 2025.

The outstanding principal amount of debt, including short-term and long-term debt, was $ 21.9 billion and $ 22.9 billion at March 29, 2026 and December 31, 2025, excluding $ 1.2 billion of unamortized discounts and issuance costs at both March 29, 2026 and December 31, 2025.

The estimated fair values of our outstanding debt were determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates and credit spreads (Level 2).

The estimated fair value of our outstanding debt was $ 20.5 billion and $ 22.0 billion at June 28, 2026 and December 31, 2025.

The outstanding principal amount of debt, including short-term and long-term debt, was $ 21.7 billion and $ 22.9 billion at June 28, 2026 and December 31, 2025, excluding $ 1.2 billion of unamortized discounts and issuance costs at both June 28, 2026 and December 31, 2025.

estimated fair values of our outstanding debt were determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates and credit spreads (Level 2).

Also in addition to the financial instruments listed in the table above, we make investments in companies that we believe are advancing or developing new technologies applicable to our business.

These investments are primarily in early-stage companies and may be in the form of common or preferred stock, warrants, convertible debt securities, investments in funds or other investments.

The carrying amounts of the investments were $ 784 million and $ 669 million at June 28, 2026 and December 31, 2025.

Net gains recorded due to adjustments in valuation and/or sales of investments were not material for the quarters and six months ended June 28, 2026 and June 29, 2025.

NOTE 9 - STOCKHOLDERS’ EQUITY

We paid cash dividends of $ 816 million ($ 3.45 per share) during the quarter ended March 29, 2026.

We paid cash dividends of $ 1.6 billion ($ 6.90 per share) during the six months ended June 28, 2026.

The total amount of dividends declared may differ from the total amount of dividends paid during a period due to the timing of dividend-equivalents paid on RSUs and PSUs.

9 unchanged sentences

Total other comprehensive income 124 ( 50 ) 74

Balance at March 29, 2026 $ ( 7,493 ) $ ( 3 ) $ ( 7,496 )

Balance at June 28, 2026 $ ( 7,431 ) $ ( 37 ) $ ( 7,468 )

Balance at December 31, 2024 $ ( 8,288 ) $ ( 164 ) $ ( 8,452 )

2 unchanged sentences

Amortization of net actuarial losses and prior service costs (a)

Other — 25 25

Total reclassified from AOCL 128 25 153

Total other comprehensive income 128 167 295

Balance at March 30, 2025 $ ( 8,224 ) $ ( 99 ) $ ( 8,323 )

Balance at June 29, 2025 $ ( 8,160 ) $ 3 $ ( 8,157 )

(a) Reclassifications from AOCL related to retirement benefits were recorded as a component of FAS expense for each period presented.

These amounts include $ 62 million and $ 64 million, net of tax, for the quarters ended June 28, 2026 and June 29, 2025, which are comprised of the amortization of net actuarial losses of $ 56 million and $ 55 million, and the amortization of net prior service costs of $ 6 million and $ 9 million, for the quarters ended June 28, 2026 and June 29, 2025.

See “Note 6 - Retirement Benefits”.

NOTE 10 - OTHER

6 unchanged sentences

We estimate profit as the difference between total estimated sales and total estimated costs to complete the contract and recognize profit as costs are incurred (over time sales recognition) or when the customer accepts the product or service (point in time sales recognition).

Contract sales may include estimates of variable consideration, including cost or performance incentives (such as award and incentive fees), un-priced change orders, requests for equitable adjustment (REAs), and contract claims.

Contract sales may include estimates of variable consideration, including cost or performance incentives (such as award and incentive fees), unpriced change orders, requests for equitable adjustment (REAs), and contract claims.

Variable consideration is included in total estimated sales to the extent it is probable that a significant reversal in the amount of cumulative sales recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

We also estimate variable consideration as the most likely amount, which we expect to be entitled.

We also estimate variable consideration as the most likely amount to which we expect to be entitled.

Contract costs include significant estimates related to labor, subcontractors, materials, overhead, general and administrative expenses, and costs to fulfill our industrial cooperation agreements, sometimes referred to as offset or localization agreements, required under certain contracts with international customers.

17 unchanged sentences

The following table presents the effect of profit booking rate adjustments on our financial results (in millions, except per share data):

Quarters Ended

2026 March 30,

Quarters Ended Six Months Ended

2026 June 29,

2025 June 28,

2026 June 29,

Sales $ 408 $ ( 361 ) $ 624 $ 142

Segment operating profit 215 480

% of segment operating profit 12 % 23 %

Net earnings 170 379

Diluted earnings per share 0.74 1.61

During the quarter ended March 29, 2026, we recorded unfavorable profit adjustments of $ 125 million on the F-16 program as a result of production performance and development delays, $ 85 million on the C-130 program as a result of continued diminishing manufacturing source integration challenges and associated delivery delays, and $ 130 million of favorable profit adjustment on the F-35 program.

During the quarter ended March 30, 2025, we recorded $ 185 million of adjustments resulting from favorable performance upon completion on certain commercial civil space programs at our Space business segment and a classified program at our Aeronautics business segment.

Segment operating profit (loss) 375 ( 1,045 ) 590 ( 565 )

% of segment operating profit (loss) 17 % ( 183 ) % 15 % ( 21 ) %

Net earnings (loss) 296 ( 826 ) 466 ( 446 )

Diluted earnings (loss) per share 1.28 ( 3.53 ) 2.02 ( 1.90 )

During the six months ended June 28, 2026, we recorded unfavorable profit adjustments of $ 125 million on the F-16 program at Aeronautics as a result of production performance and development delays, $ 95 million on the C-130 program at Aeronautics as a result of continued diminishing manufacturing source integration challenges and associated delivery delays, $ 95 million on Heavy Lift programs at RMS as a result of production performance, and $ 80 million on Seahawk programs at RMS as a result of production performance and schedule delays.

During the quarter ended June 29, 2025, we recorded losses of $ 950 million on an ongoing classified program at Aeronautics, and $ 570 million on Canadian Maritime Helicopter Program (CMHP) and $ 95 million on Türkish Utility Helicopter Program (TUHP) at RMS.

During the six months ended June 29, 2025, in addition to the losses above, we recorded $ 125 million of adjustments resulting from favorable performance upon completion on certain commercial civil space programs at Space and an $ 80 million favorable adjustment upon completion of a classified program at Aeronautics.

We have various development programs for new and upgraded products, services, and related technologies which have complex design and technical challenges.

3 unchanged sentences

In such cases, the associated financial risks are primarily in reduced fees, lower profit rates, or program cancellation if cost, schedule, or technical performance issues arise.

However, some of our existing development programs are contracted on a fixed-price basis or include cost-type contracting for the development phase with fixed-price production options and our customers continue to implement procurement strategies such as these that shift risk to contractors.

However, some of our existing development programs are contracted on a fixed-price basis or include cost-type contracting for the development phase with fixed-price production options.

Our customers continue to implement procurement strategies such as these that shift risk to contractors.

Competitively bid programs with fixed-price development work or fixed-price production options increase the risk of a reach-forward loss upon contract award and during the period of contract performance.

7 unchanged sentences

Phases within the program involve highly complex design and systems integration.

Challenges and performance issues continued into 2025 and had a greater impact on schedule and costs than previously estimated.

There were also new, unanticipated events that occurred in 2025 that impacted the program’s performance, as described below.

As a result of performance issues with the program, Aeronautics performed a comprehensive review of its design, integration, test, and other processes to achieve the technical requirements of the program, which was completed in the second quarter of 2025.

The events that occurred in 2025, and the comprehensive review completed in the second quarter of 2025, resulted in significant changes in the program’s processes and testing approach and led to an extension of the program’s schedule, which drove a substantial increase in cost estimates.

As a result of performance issues with the program, Aeronautics completed a comprehensive review of its design, integration, test, and other processes to achieve the technical requirements of the program in the second quarter of 2025.

The performance issues that occurred in 2025, and the comprehensive review completed in the second quarter of 2025, resulted in significant changes in the program’s processes and testing approach and led to an extension of the program’s schedule, which drove a substantial increase in cost estimates.

As a result, during the second quarter of 2025, we recognized additional reach-forward losses of $ 950 million across both phases of the program.

5 unchanged sentences

and (5) complete schedule realignment, including as a result of items (1) through (4).

As of March 29, 2026, cumulative losses recognized to date on this program remained at approximately $ 1.8 billion across both phases.

As of March 29, 2026, $ 450 million of the losses remained accrued in other current liabilities in our consolidated balance sheet.

As of June 28, 2026, cumulative losses recognized to date on this program remained at approximately $ 1.8 billion across both phases.

As of June 28, 2026, $ 427 million of the losses remained accrued in other current liabilities on our consolidated balance sheets.

We continue to proactively manage the technical requirements and our performance, the remaining work and any future changes in scope or schedule, and estimated costs to complete the program, including future phases.

7 unchanged sentences

We previously disclosed that the options may be exercised over the next several years and, if performed, we expect they would each be at a loss.

Based upon performance to date, future requirements of the program, discussions with the customer, and anticipated customer funding, among other factors, we continue to believe it is probable that all unexercised options will be exercised.

Certain options have been exercised, and based upon performance to date, future requirements of the program, discussions with the customer, and anticipated customer funding, among other factors, we continue

to believe it is probable that the remaining unexercised options will be exercised.

As we perform on the cost-reimbursable base contract and the options, we continue to evaluate our estimates of cost necessary to complete the scope on the contract.

Our estimates could change based on our performance, supplier negotiations and their performance, macroeconomic impacts, and discoveries made in the execution of these options or on the cost-reimbursable base contract.

As of March 29, 2026, cumulative losses recognized on the program remained at approximately $ 1.46 billion in total, of which, $ 1.12 billion remained accrued in other current liabilities in our consolidated balance sheet.

As of June 28, 2026, cumulative losses recognized on the program remained at approximately $ 1.5 billion in total, of which, $ 1.1 billion remained accrued in other current liabilities on our consolidated balance sheets.

Any changes to our estimates or assumptions may result in additional losses and such losses could be material to our financial results in any period that they are recognized.

2 unchanged sentences

The program provides for design, development, and production of CH-148 aircraft (the Original Equipment contract), which is a military variant of the S-92 helicopter, and for logistical support to the fleet (the In Service Support contract) over an extended time period.

The final aircraft under the program was delivered to Canada during the third quarter of 2025 and subsequently accepted.

In 2025, the final aircraft under the program was delivered to Canada and accepted.

The program has experienced performance issues and we have previously recorded losses on the program.

These losses included additional losses of $ 570 million recognized during the second quarter of 2025 as a result of revisions to our cost and sales estimate.

We have been in discussions with the Canadian government to potentially restructure certain contractual terms and conditions that may be beneficial to both parties.

As of March 29, 2026, cumulative losses recognized on the program remained at approximately $ 670 million and approximately

$ 605 million of contract assets remained on the balance sheet.

As of June 28, 2026, cumulative losses recognized on the program remained at approximately $ 670 million, of which $ 365 million

remained accrued in other current liabilities on our consolidated balance sheet.

Contract assets were approximately $ 585 million as of June 28, 2026.

Any restructuring discussions may be prolonged or unsuccessful, and could result in a contract termination, and are dependent upon Canadian government resources and priorities and other factors outside of our control, such as trade relations with the United States.

These items in addition to future performance issues or changes in our estimates may affect our ability to recover our costs, including recovery of the contract assets recognized on the balance sheet and our assessment of the reach-forward loss, and potential damages, which could be material to our financial results in any period that they are recognized.

These items in addition to future performance issues or changes in our estimates, or dependencies on suppliers may affect our ability to recover our costs, including recovery of the contract assets recognized on our consolidated balance sheets and our assessment of the reach-forward loss, and potential damages, which could be material to our financial results in any period that they are recognized.

Türkish Utility Helicopter Program

4 unchanged sentences

Our performance under the new contracts is subject to the receipt of U.S.

export authorizations and we have obtained an amendment to our manufacturing license agreement and are in the process of obtaining the remaining licenses needed to support our obligations under the new contracts.

If we are unsuccessful, our customer could drawdown on letters of credit, which could negatively affect our cash flows and our ability to recover our costs, and we could incur additional losses of up to approximately $ 115 million.

As of March 29, 2026, cumulative losses recognized to date on the program remained at approximately $ 130 million and the program remains in a contract liability position on the balance sheet.

export authorizations.

We have obtained an amendment to our manufacturing license agreement and have now received the remaining licenses needed to support our obligations under the new contracts.

With all required licenses in place, the risk of customer drawdown on letters of credit linked to obtaining these licenses has been eliminated.

As of June 28, 2026, cumulative losses recognized to date on the program remained at approximately $ 130 million.

United Launch Alliance Investment

We hold a 50 % membership interest in United Launch Alliance (ULA), with The Boeing Company (Boeing) holding the other 50 % interest.

We account for this investment under the equity method, with $ 617 million and $ 551 million recorded in other noncurrent assets on our consolidated balance sheets at June 28, 2026 and December 31, 2025, respectively.

During the first quarter of 2026, ULA’s Vulcan Centaur rocket experienced performance challenges that are negatively affecting ULA’s financial condition and results of operations.

In the second quarter of 2026, we agreed to guarantee certain ULA borrowings under which maximum potential future payments amount to $ 500 million.

The fair value of the guarantee obligation we recognized in the second quarter of 2026 amounts to $ 64 million and our investment in ULA has increased by a corresponding amount.

We and Boeing expect to provide additional financial support to ULA to support its liquidity or ongoing operations and could incur impairment and operating losses if the Vulcan Centaur rocket does not perform consistent with ULA’s assumptions.

Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer.

5 unchanged sentences

As the risks on such contracts are successfully retired, the estimated consideration from customers may be reduced, resulting in a reduction of backlog without a corresponding recognition of sales.

As of March 29, 2026, our ending backlog was $ 186.4 billion.

As of June 28, 2026, our ending backlog was $ 230.4 billion.

The increase in backlog of $ 36.8 billion during the six months ended June 28, 2026 was primarily due to an undefinitized contractual action (UCA) awarded for the THAAD program at our MFC business segment.

We expect to recognize approximately 30 % of our backlog over the next 12 months and a total of approximately 50 % over the next 24 months as revenue with the remainder recognized thereafter.

Our effective income tax rates were 16.1 % and 15.9 % for the quarters ended March 29, 2026 and March 30, 2025.

The rates for all periods benefited from the tax deductions for foreign derived deduction eligible income (formerly known as foreign derived intangible income), research and development tax credits, dividends paid to our defined contribution plans with an employee stock ownership plan feature and employee equity awards.

Our effective income tax rates were 15.7 % and 15.9 % for the quarter and six months ended June 28, 2026 and 18.0 % and 16.3 % for the quarter and six months ended June 29, 2025.

The lower effective income tax rates for the quarter and six months ended June 28, 2026 were primarily attributable to lower interest expense on our uncertain tax position and the reach-forward losses recognized in 2025.

The rates for all periods benefited from the tax deductions for foreign derived deduction eligible income, research and development tax credits, dividends paid to our defined contribution plans with an employee stock ownership plan feature and employee equity awards.

NOTE 11 - RECENT ACCOUNTING PRONOUNCEMENTS

4 unchanged sentences

Under the new standard, cost capitalization should only commence when an entity has committed to funding a software project and it is probable the project will be completed and the software will be used for its intended function.

The amendments are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods.

The amendments are effective for annual and interim reporting periods beginning January 1, 2028.

Entities may apply the guidance using a prospective, retrospective or modified transition approach.

Early adoption is permitted as of the beginning of an annual reporting period.

We are currently determining the preferred transition approach and assessing the impact of the ASU on our disclosures and financial statements, including the timing of its adoption.

We will adopt the ASU on its effective date of January 1, 2028.

In November 2024, the FASB issued ASU No.

3 unchanged sentences

In addition, entities must provide a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

The amendments are effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption permitted.

The amendments are effective for annual reporting periods beginning January 1, 2027, and for interim reporting periods beginning after January 1, 2028.

We are evaluating the impact of this ASU and expect the standard will only affect our disclosures and will not impact our results of operations or financial condition.

NOTE 12 - SUBSEQUENT EVENTS

On July 6, 2026, we announced that we entered into a definitive agreement to acquire Ultra Maritime Solutions (Ultra Maritime), a global defense company specializing in advanced undersea warfare and anti-submarine capabilities for allied naval forces, for $ 3.45 billion.

We expect to fund the acquisition with cash on hand and additional financing arrangements.

The transaction is subject to regulatory reviews and approvals and customary closing conditions, and is expected to close in the fourth quarter of 2026.

Report of Independent Registered Public Accounting Firm

2 unchanged sentences

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of Lockheed Martin Corporation (the Company) as of March 29, 2026, the related consolidated statements of earnings, comprehensive income, cash flows and equity for the three-month periods ended March 29, 2026 and March 30, 2025, and the related notes (collectively referred to as the “consolidated interim financial statements”).

We have reviewed the accompanying consolidated balance sheet of Lockheed Martin Corporation (the Company) as of June 28, 2026, the related consolidated statements of earnings, comprehensive income and equity for the quarters and six months ended June 28, 2026 and June 29, 2025, the consolidated statements of cash flows for the six months ended June 28, 2026 and June 29, 2025, and the related notes (collectively referred to as the “consolidated interim financial statements”).

Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S.

13 unchanged sentences

Tysons, Virginia

April 23, 2026

July 23, 2026

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements