TheC-130 Hercules has been in production since the 1950s with the C-130J variant being produced now.Submarine launch of a LockheedUGM-133 Trident IISLBM
In 2024, 73% of the company's revenue came from the federal government of the United States, including 65% from theUnited States Department of Defense.[3] In 2024, 26% of revenue was from sales of the F-35 fighter.[3]
Merger talks betweenLockheed Corporation andMartin Marietta began in March 1994, with the companies announcing their $10 billion planned merger on August 30, 1994.[10][11] The headquarters for the combined companies would be at Martin Marietta headquarters inNorth Bethesda, Maryland.[12] The deal was finalized on March 15, 1995, when the two companies' shareholders approved the merger.[13] The segments of the two companies not retained by the new company formed the basis forL-3 Communications, a mid-size defense contractor in its own right. Lockheed Martin also later spun off the materials companyMartin Marietta Materials.[citation needed]
The company's executives received large bonuses directly from the government as a result of the merger.Norman R. Augustine, who was at the time CEO of Martin Marietta, received an $8.2 million bonus.[14]
On April 22, 1996, Lockheed Martin completed the acquisition ofLoral Corporation's defense electronics and system integration businesses for $9.1 billion, the deal having been announced in January. The remainder of Loral becameLoral Space & Communications.[15] Lockheed Martin abandoned plans for an $8.3 billion merger withNorthrop Grumman on July 16, 1998, due to government concerns over the potential strength of the new group; Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget.[16]
For theMars Climate Orbiter, Lockheed Martin incorrectly provided NASA with software using measurements inUS Customary force units when metric units were expected; this resulted in the loss of the Orbiter at a cost of $125 million.[17][18] The development of the spacecraft cost $193 million.[19][20]
In addition to their military products, in the 1990s Lockheed Martin developed thetexture mapping chip for theSega Model 2arcade system board and the entire graphics system for theSega Model 3, which were used to power some of the most popular arcade games of the time.[21]
Lockheed Martin's prior Center For Leadership Excellence (CLE) Building, which was located near its corporate headquarters
In May 2001, Lockheed Martin soldLockheed Martin Control Systems toBAE Systems.[22] On November 27, 2000, Lockheed completed the sale of itsAerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassedSanders Associates,Fairchild Systems, and Lockheed Martin Space Electronics & Communications.[23][24] In 2001, Lockheed Martin won the contract to build theF-35 Lightning II; this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 aircraft. In 2001, Lockheed Martin settled a nine–year investigation conducted by NASA's Office of Inspector General with the assistance of the Defense Contract Audit Agency. The company paid the United States government $7.1 million based on allegations that its predecessor, Lockheed Engineering Science Corporation, submitted false lease costs claims to NASA.[25]
On July 8, 2003, a Lockheed Martin plant inMeridian, Mississippi became the scene of aracially motivated mass shooting when an assembly line worker murdered six co-workers (five of whom were black) and wounded eight before killing himself.[26] In the immediate aftermath of the shooting, Lockheed Martin's President refused to disclose whether company officials were previously aware of any red flags regarding the worker.[27] The company had launched its own investigation into the worker's behavior prior to the massacre following complaints from numerous black employees regarding incidents involving the worker. He had been ordered to attend anger management courses and diversity training but refused.[28]
On May 12, 2006,The Washington Post reported that when Robert Stevens took control of Lockheed Martin in 2004, he faced the dilemma that within 10 years, 100,000 of the about 130,000 Lockheed Martin employees – more than three-quarters – would be retiring.[29] On August 31, 2006, Lockheed Martin won a $3.9 billion contract from NASA to design and build the CEV capsule, later namedOrion for theAres I rocket in the Constellation Program. In 2009, NASA reduced the capsule crew requirements from the initial six seats to four for transport to the International Space Station.[30]
In August 2007, Lockheed Martin acquired 3Dsolve, aCary, North Carolina, company that created simulations and training modules for the military and corporate clients.[31] Renamed Lockheed Martin 3D Learning Systems, the company remained in Cary with 3D's founder Richard Boyd as director.[32] The name was eventually shortened to Lockheed Martin 3D Solutions.[33]
On August 13, 2008, Lockheed Martin acquired the government business unit of Nantero, Inc., a company that had developed methods and processes for incorporatingcarbon nanotubes in next-generation electronic devices.[34][35] In 2009, Lockheed Martin bought Unitech.[36]
On November 18, 2010, Lockheed Martin announced that it would be closing itsEagan, Minnesota, location by 2013 to reduce costs and optimize capacity at its locations nationwide.[37] In January 2011, Lockheed Martin agreed to pay the U.S. Government $2 million to settle allegations that the company submittedfalse claims on a U.S. government contract for that amount. The allegations came from a contract with the Naval Oceanographic Office Major Shared Resource Center in Mississippi.[38]
On May 25, 2011, Lockheed Martin bought the first Quantum Computing System fromD-Wave Systems. Lockheed Martin and D-Wave will collaborate to realize the benefits of a computing platform based upon aquantum annealing processor, as applied to some of Lockheed Martin's most challenging computation problems. Lockheed Martin established a multi-year contract that includes one system, maintenance, and services.[39]
On May 28, 2011, it was reported that acyberattack usingpreviously stolen EMC files had broken through to sensitive materials at the contractor.[40] It is unclear if the Lockheed incident is the specific prompt whereby on June 1, 2011, the new United States military strategy, makes explicit that a cyberattack iscasus belli for a traditional act of war.[41]
On March 3, 2012, theU.S. Department of Justice (DOJ) said that Lockheed Martin had agreed to settle allegations that the defense contractor had sold overpriced perishable tools used on many contracts. The DOJ said the allegations were based specifically on the subsidiary Tools & Metals Inc's inflation of costs between 1998 and 2005, which Lockheed Martin then passed on to the U.S. government under its contracts. Further, in March 2006, Todd B. Loftis, a former TMI president, was sentenced to 87 months in prison and ordered to pay a fine of $20 million following his guilty plea.[42]
On July 10, 2012, Lockheed Martin announced it was cutting its workforce by 740 workers to reduce costs and remain competitive as necessary for future growth.[43] On November 27, 2012, Lockheed Martin announced thatMarillyn Hewson would become the corporation's chief executive officer on January 1, 2013.[44]
On January 7, 2013, Lockheed Martin Canada announced that it would be acquiring the engine maintenance, repair, and overhaul assets fromAveos Fleet Performance inMontreal,Quebec, Canada. On February 20, 2013, Lockheed Martin Corp complied with theUnited States District Court for the Southern District of New York, agreeing to pay a $19.5 million lawsuit to conclude asecurities fraudclass-action legal battle that had accused the company of deceiving shareholders in regards to expectations for the company's information technology division.[45] On July 3, 2013, Lockheed Martin announced that it was partnering withDreamHammer to use the company's software for integrated command and control of its unmanned aerial vehicles.[46] Lockheed Martin teamed up withBell Helicopter to propose theV-280 Valortiltrotor for theFuture Vertical Lift (FVL) program.[47] In September 2013, Lockheed Martin acquired theScotland-based tech firm,Amor Group, saying the deal would aid its plans to expand internationally and into non-defense markets.[48] On November 14, 2013, Lockheed announced they would be closing theirAkron, Ohio facility laying off 500 employees and transferring other employees to other locations.[49]
In October 2013, Lockheed announced it expected to finalize a $2.2 billion contract with theUnited States Air Force for two advanced military communications satellites.[50]
Lockheed Martin's F-35 Lightning II
In March 2014, Lockheed Martin acquired Beontra AG, a provider of integrated planning and demand forecasting tools for airport, planning to expand their business in commercial airport information technology solutions.[51] Also, in March 2014, Lockheed Martin announced its acquisition of Industrial Defender Inc.[52] On June 2, 2014, Lockheed Martin received a Pentagon contract to build a space fence that would track debris, keeping it from damaging satellites and spacecraft.[53]
On December 20, 2014, Lockheed Martin Integrated Systems agreed to settle aFalse Claims Act lawsuit paying $27.5 million to finalize allegations that it had knowingly overbilled taxpayers for work performed by company staff who did not hold the relevant essential qualifications for the contract.[54]
On July 20, 2015, Lockheed Martin announced plans to purchaseSikorsky Aircraft fromUnited Technologies Corporation at a cost of $7.1 billion.[55][56]The Pentagon has criticized the acquisition as causing a reduction in competition.[57] In November 2015, the acquisition received final approval from the Chinese government,[58] with a total cost of $9 billion.[59] Dan Schulz was named the president of Lockheed Martin's Sikorsky company.[60] Lockheed Martin has shown[when?] sketches for a twin-engine,blended wing body strategic airlifter similar in size to the C-5.[61] On March 31, 2015, the US Navy awarded Lockheed Martin a contract worth $362 million for the construction ofFreedom-class ship LCS 21 and $79 million for advance procurement for LCS 23. The Freedom-class ships are built by Fincantieri Marinette Marine inMarinette, Wisconsin.[62] In December 2015, Lockheed won an $867 million seven-year contract to trainAustralia's next generation ofmilitary pilots. The deal also has the option to extend this contract across 26 years, which would greatly increase the deal's value.[63]
In August 2016, Canadian Forces Maritime tested an integrated submarine combat system developed by Lockheed Martin. The test marked Canada's first use of the combat system with the MK 48 heavyweight torpedo, variant 7AT.[64] The same month, a deal to mergeLeidos with the entirety of Lockheed Martin's Information Systems & Global Solutions (IS&GS) business came to a close.[65][66]
In May 2017, during a visit to Saudi Arabia by President Donald Trump,Saudi Arabia signed business deals worth tens of billions of dollars with U.S. companies, including Lockheed Martin.[67] (See:2017 United States–Saudi Arabia arms deal)
On August 13, 2018, Lockheed Martin announced that the company had secured a $480 million contract from theUnited States Air Force to develop ahypersonic weapon prototype. Ahypersonic missile can travel at one mile a second. This is the second contract for hypersonic weapons that Martin has secured; The first was from the Air Force as well and for $928 million which was announced in April 2018.[68][69]
On November 29, 2018, Lockheed Martin was awarded aCommercial Lunar Payload Services contract byNASA, which makes it eligible to bid on delivering science and technology payloads to the Moon for NASA, worth $2.6 billion.[70] Lockheed Martin plans to formally propose a lander calledMcCandless Lunar Lander, named after the late astronaut and former Lockheed Martin employee Bruce McCandless II, who in 1984 performed the first free-flying spacewalk without a lifeline to the orbiting shuttle, using a jetpack built by the company.[71] This lander would be based on the successful design of thePhoenix andInSight Mars landers.[72]
On April 11, 2019, at 6:35 pm EDT, anArabsat-6A satellite was successfully launched from(LC-39A). This satellite is one of two, the other beingSaudiGeoSat-1/HellasSat-4 and they are the "most advanced commercial communications satellites ever built by" Lockheed Martin.[73]
On September 23, 2019, Lockheed Martin and NASA signed a $4.6-billion contract to build six or moreOrion capsules for NASA's Artemis program to send astronauts to the Moon.[74]
In January 2020, theNaval Sea Systems Command awarded Lockheed Martin with a $138 million contract related with the AEGIS Combat System Engineering Agent (CSEA). The LMT Rotary and Mission Systems (RMS) unit of the company is to develop, integrate, test, and deliver the AEGIS Advanced Capability Build (ACB) 20 integrated combat system. Martin will work on the AEGIS in New Jersey. The project is expected to be completed by December 2020.[75]
In January 2020, the Pentagon found at least 800 software defects in Lockheed Martin's F-35 fighter jets owned by the US Armed Forces during an annual review. The 2018 and 2019 reviews revealed a large number of defects as well.[76]
In February 2020, Lockheed Martin acquiredVector Launch Inc's satellite software technology GalacticSky for $4.25 million after a bankruptcy court received no bids by the February 21 deadline.[77][78]
On March 16, 2020, Lockheed Martin announced thatJames D. Taiclet would replaceMarillyn Hewson as CEO, effective June 15.[79] In January 2021, Taiclet became chairman of the company as well.[80]
Lockheed Martin wassanctioned by the Chinese government in July 2020,[81] October 2020,[82] and February 2023 due to arm sales to Taiwan.[83]
On December 20, 2020, it was announced that Lockheed Martin would acquireAerojet Rocketdyne Holdings for $4.4 billion.[84] The acquisition was expected to close in first quarter of 2022.[85] On February 13, 2022, Lockheed abandoned the deal following regulatory disapproval.[86][87]
In 2022, during theRussian invasion of Ukraine, major arms manufacturers, including Lockheed Martin,[88] reported a sharp increase in interim sales and profits.[89][90][91]
Pro-Palestinian protest calling for an arms embargo on Israel at Lockheed Martin UK inHavant, England, June 17, 2025
In November 2023, attempts atDirect action were taken against arms companies in the US and the UK, including Lockheed Martin,[94][95] that supplied weapons toIsrael during theGaza war.[96]
In March 2024, Lockheed Martin submitted a bid to acquire Terran Orbital.[97]
On June 28, 2024, the U.S. Army awarded Lockheed Martin a $4.5 billion contract to supply Patriot Advanced Capability-3 (PAC-3) missiles. The contract included 870 PAC-3 MSE missiles and related hardware. Lockheed was tasked with manufacturing the newest version of these interceptors, with each PAC-3 MSE missile costing approximately $4 million, as per Army budget documents.[98]
On October 9, 2024, Lockheed Martin announced the appointment of Chauncey McIntosh as vice president and general manager of the F-35 Lightning II Program, effective December 1, 2024. He succeeded Bridget Lauderdale, who retired after 38 years with the company.[99]
In December 2024, Lockheed Martin announced that it had formed a subsidiary, Astris AI, that would help U.S. defense companies to incorporate artificial intelligence into their operations.[100]
For the fiscal year 2020, Lockheed Martin reported earnings of $6.833 billion, with an annual revenue of $65.398 billion, an increase of 9.3% over the previous year.[102] Backlog was 144.0 billion at the end of 2019, up from 130.5 billion at the end of the 2018. Firm orders were $94.5 billion at the end of 2019.[103] Its shares traded at over $389 per share.[104] Its market capitalization was valued at US$109.83 billion at the end of 2019.[105] Lockheed Martin ranked No. 60 in the 2019Fortune 500 list of the largest United States corporations by total revenue (down from No. 59 in 2018).[106]
Lockheed profits sharply dropped 80% in Q2 2025, owing to a highly classified U.S. government aerospace program CEO James Taiclet described as "magical".[129] The loss from development of the described "game changing" classified aerospace program totaled $1.6 billion.[130] Taiclet stated investors would be unable to know details of the "magical" classified aerospace program for many years to come.[129] During the same earnings call, Lockheed acknowledged the existence of a second highly classified aerospace program, described as well as both magical and game-changing.[130]
Lockheed Martin is listed as the largest U.S. government contractor and ranks first for the number of incidents, and fifth for the size of settlements on the 'contractor misconduct' database maintained by theProject on Government Oversight, a Washington, D.C.–based watchdog group. Since 1995, the company has agreed to pay $676.8 million to settle 88 instances of misconduct.[138]
In 2015, Lockheed Martin agreed to pay $4.7 million to settle charges that it illegally usedtaxpayer money to lobby the federal government toblock competitors, including by funneling funds through its subsidiary,Sandia Corporation.[139][140] This involved hiring former RepresentativeHeather Wilson, one of the most influential ex-lawmakers in thedefense sector, as an unregistered lobbyist to maintain Lockheed's lucrativenuclear weapons lab contracts.[140][141] More broadly, commentators have criticized Lockheed Martin and other weapons defense firms for using secretive spending anddark money to influencedefense policy, raising concerns about reduced accountability andnational security risks.[142]
In 2013, Lt. Gen.Christopher Bogdan criticized the company's F-35 fighter program. The general said: "I want them both to start behaving like they want to be around for 40 years ... I want them to take on some of the risk of this program. I want them to invest in cost reductions. I want them to do the things that will build a better relationship. I'm not getting all that love yet."[143] The criticism came in the wake of previous criticism from formerDefense SecretaryRobert Gates regarding the same program.[144]
Lockheed Martin has highlighted the conflicts inGaza andUkraine as potential opportunities for future revenue growth.[145]
According to the magazinePolitico, Lockheed Martin has "a political network that is already the envy of its competitors", and its contracts enjoy wide bipartisan support in the U.S. Congress thanks to it having "perfected the strategy of spreading jobs on weapons programs in key states and congressional districts".[146] The company's 2022 lobbying expenditure is $13.6 million (2009 total: $13.7 million).[147][148]
Lockheed Martin Employees Political Action Committee is one of the 50 largest in the country, according to FEC data. With contributions from 3,000 employees, it donates $500,000 a year to about 260 House and Senate candidates.[150][needs update]
In 2025, Lockheed Martin was one of the donors who funded the White House'sEast Wing demolition, and planned building of a ballroom.[151]
On March 16, 2020, Lockheed announced that CEOMarillyn Hewson would become executive chair and be succeeded as CEO by James Taiclet on June 15; Taiclet was at the time the head ofAmerican Tower, and had previously been the president ofHoneywell Aerospace and before that a VP atUnited Technologies. Lockheed also announced that it would create thechief operating officer role, to which current EVP Frank A. St John would be promoted.[154]
Employees in each program are organized into four tiers: Tier 1: Program Manager/VP, Tier 2: Functional Teams (Finance, Chief Engineer, Quality, Operations, etc.), Tier 3: Integrated Product Teams (IPTs) (Weapon System Development, Weapon System Integration, etc.), and Tier 4: detailed product development. Floor or touch workers belong to component assembly teams.[155] Lockheed Martin manages and maintains its relationship with these touch workers through its supervisors and unions.[156]
Lockheed Martin manages employees through its Full Spectrum Leadership and LM21 programs.[157] The LM21 program relies onSix Sigma principles, which are techniques to improve efficiency. Senior management constructs leadership councils and assigns managers to facilitateKaizen events, which target specific processes for improvement. A manager facilitates teams and processes stakeholders and suppliers to streamline process implementation.[158][159][155]
Tier 2 Functional Leads and Tier 3 IPT Leads report to Tier 1. IPT leads are responsible for entire systems or products defined by the contract's Statement of Work.[155]
To control quality, Lockheed Martin trains and builds IPT teams.[155] and ensures that work is executed correctly through a Technical Performance Measure (TPM) system which emphasizes its Lean and 6 Sigma processes. Middle management uses commitment mechanisms that parallel high commitment and human relations theory.[160]
Floor employees assemble aircraft using Flow-to-takt lean manufacturing process[161] which uses properties from both division of labor and scientific management. By separating tasks based on parts, Lockheed Martin utilizes the division of labor theory,[162] specialization on a specific area creates efficiency.[citation needed]
The "Double Helix methodology" is a systems development methodology used by Lockheed Martin. It combines experimentation, technology, and a warfighter'sconcept of operations to create new tactics and weapons.[163]
^Gaughan, Patrick A. (2011).Mergers, Acquisitions, and Corporate Restructurings (5th ed.). Hoboken, NJ: John Wiley & Sons. p. 114.ISBN978-0-470-56196-6.
^Mintz, John (April 23, 1996). "Lockheed-Martin Loral Merger May Mean a Loss of Business; McDonnell Douglas Threatens to Cancel Billions in Contracts".The Washington Post.
^Lorell, Mark A.; Lowell, Julia F.; Moore, Richard M.; Greenfield, Victoria A.; Vlachos, Katia (2002).Going Global?: U.S. Government Policy and the Defense Aerospace Industry. Santa Monica, CA: Rand Corporation. p. 129.ISBN0-8330-3193-7.
^"Contract for BAE".The Times. Times Newspapers. November 28, 2000.
^Parreault, Carl (July 14, 2004). "British aerospace firm buys Sanders".The Union Leader.
^"商务部回应不可靠实体清单实施有关问题" [The Ministry of Commerce responded to questions about the implementation of the Unreliable Entity List].Xinhua News Agency. April 18, 2023. Archived fromthe original on May 31, 2023. RetrievedMay 30, 2023.
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