Lockheed Martin Corporation Consolidated Statements of Earnings (unaudited; in millions, except per share data) Quarters Ended Dec. 31, 2025 | Quarters Ended Dec. 31, 2024 | Years Ended Dec. 31, 2025 | Years Ended Dec. 31, 2024 Sales: $20,321 | $18,622 | $75,048 | $71,043 Operating costs and expenses: (17,999) | (17,932) | (67,429) | (64,113) Gross profit: 2,322 | 690 | 7,619 | 6,930 Other income, net: 9 | 6 | 112 | 83 Operating profit: 2,331 | 696 | 7,731 | 7,013 Interest expense: (290) | (264) | (1,118) | (1,036) Non-service FAS pension (expense) income1: (578) | 15 | (874) | 62 Other non-operating income, net: 68 | 72 | 183 | 181 Earnings before income taxes: 1,531 | 519 | 5,922 | 6,220 Income tax expense: (187) | 8 | (905) | (884) Net earnings1: $1,344 | $527 | $5,017 | $5,336 Effective tax rate: 12.2% | (1.5%) | 15.3% | 14.2% Earnings per common share: Basic: $5.82 | $2.23 | $21.56 | $22.39 Diluted: $5.80 | $2.22 | $21.49 | $22.31 Weighted average shares outstanding: Basic: 230.9 | 236.0 | 232.7 | 238.3 Diluted: 231.9 | 237.0 | 233.5 | 239.2 Common shares reported in stockholders' equity at end of period: 229 | 234 1 In the quarter and year ended Dec. 31, 2025, the company recognized a non-operational charge of $479 million ($377 million, or $1.63 per share, after-tax) related to a pension transfer. Lockheed Martin Corporation Business Segment Summary Operating Results (unaudited; in millions) Sales: Quarters Ended Dec. 31, 2025 | Quarters Ended Dec. 31, 2024 | % Change | Years Ended Dec. 31, 2025 | Years Ended Dec. 31, 2024 | % Change Aeronautics: $8,524 | $8,009 | 6% | $30,257 | $28,618 | 6% Missiles and Fire Control: 4,020 | 3,412 | 18% | 14,450 | 12,682 | 14% Rotary and Mission Systems: 4,616 | 4,261 | 8% | 17,312 | 17,264 | —% Space: 3,161 | 2,940 | 8% | 13,029 | 12,479 | 4% Total sales: $20,321 | $18,622 | 9% | $75,048 | $71,043 | 6% Operating profit: Aeronautics: $782 | $434 | 80% | $2,086 | $2,523 | (17%) Missiles and Fire Control: 535 | (804) | (167%) | 1,989 | 413 | 382% Rotary and Mission Systems: 468 | 513 | (9%) | 1,323 | 1,921 | (31%) Space: 273 | 283 | (4%) | 1,345 | 1,226 | 10% Total business segment operating profit: 2,058 | 426 | 383% | 6,743 | 6,083 | 11% Unallocated items: FAS/CAS operating adjustment: 380 | 406 | — | 1,518 | 1,624 | — Impairment and other charges: — | — | — | (66) | (87) | — Intangible asset amortization expense: (57) | (64) | — | (254) | (247) | — Other, net: (50) | (72) | — | (210) | (360) | — Total unallocated items: 273 | 270 | 1% | 988 | 930 | 6% Total consolidated operating profit: $2,331 | $696 | 235% | $7,731 | $7,013 | 10% Operating margin: Aeronautics: 9.2% | 5.4% | — | 6.9% | 8.8% | — Missiles and Fire Control: 13.3% | (23.6%) | — | 13.8% | 3.3% | — Rotary and Mission Systems: 10.1% | 12.0% | — | 7.6% | 11.1% | — Space: 8.6% | 9.6% | — | 10.3% | 9.8% | — Total business segment operating margin: 10.1% | 2.3% | — | 9.0% | 8.6% | — Total consolidated operating margin: 11.5% | 3.7% | — | 10.3% | 9.9% | — Lockheed Martin Corporation Consolidated Balance Sheets (in millions, except par value) Dec. 31, 2025 (unaudited) | Dec. 31, 2024 Assets Current assets: Cash and cash equivalents: $4,121 | $2,483 Receivables, net: 3,901 | 2,351 Contract assets: 13,001 | 12,957 Inventories: 3,524 | 3,474 Other current assets: 815 | 584 Total current assets: 25,362 | 21,849 Property, plant and equipment, net: 8,875 | 8,726 Goodwill: 11,314 | 11,067 Intangible assets, net: 1,887 | 2,015 Deferred income taxes: 2,975 | 3,557 Capitalized software: 2,417 | 1,866 Other noncurrent assets: 7,010 | 6,537 Total assets: $59,840 | $55,617 Liabilities and equity Current liabilities: Accounts payable: $3,630 | $2,222 Salaries, benefits and payroll taxes: 3,184 | 3,125 Contract liabilities: 11,440 | 9,795 Current maturities of long-term debt: 1,168 | 643 Other current liabilities: 3,913 | 3,635 Total current liabilities: 23,335 | 19,420 Long-term debt, net: 20,532 | 19,627 Accrued pension liabilities: 3,915 | 4,791 Other noncurrent liabilities: 5,337 | 5,446 Total liabilities: 53,119 | 49,284 Stockholders' equity: Common stock, $1 par value per share: 229 | 234 Additional paid-in capital: — | — Retained earnings: 14,034 | 14,551 Accumulated other comprehensive loss: (7,542) | (8,452) Total stockholders' equity: 6,721 | 6,333 Total liabilities and equity: $59,840 | $55,617 Lockheed Martin Corporation Consolidated Statements of Cash Flows (unaudited; in millions) Years Ended Dec. 31, 2025 | Years Ended Dec. 31, 2024 Operating activities: Net earnings: $5,017 | $5,336 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization: 1,687 | 1,559 Stock-based compensation: 304 | 277 Deferred income taxes: 372 | (588) Pension settlement charge: 479 | — Impairment and other charges: 66 | 87 Reach-forward losses on select programs: 1,615 | 1,965 Changes in assets and liabilities: Receivables, net: (1,550) | (219) Contract assets: (283) | (109) Inventories: (286) | (478) Accounts payable: 1,341 | (93) Contract liabilities: 1,219 | 605 Income taxes: (255) | 131 Qualified defined benefit pension plans: (415) | (992) Other, net: (754) | (509) Net cash provided by operating activities: 8,557 | 6,972 Investing activities: Capital expenditures: (1,649) | (1,685) Other, net: (328) | (107) Net cash (used for) investing activities: (1,977) | (1,792) Financing activities: Issuance of long-term debt, net of related costs: 1,985 | 2,970 Repayments of long-term debt: (642) | (168) Repurchases of common stock: (3,000) | (3,700) Dividends paid: (3,131) | (3,059) Other, net: (154) | (182) Net cash (used for) financing activities: (4,942) | (4,139) Net change in cash and cash equivalents: 1,638 | 1,041 Cash and cash equivalents at beginning of period: 2,483 | 1,442 Cash and cash equivalents at end of period: $4,121 | $2,483 Lockheed Martin Corporation Selected Financial Data (unaudited; in millions) 2026 Outlook | 2025 Actual Total FAS expense and CAS cost: FAS pension expense: $(370) | $(924) Less: CAS pension cost: 1,735 | 1,568 Total FAS/CAS pension adjustment: $1,365 | $644 Less: pension settlement charge: — | 479 Total FAS/CAS pension adjustment - adjusted1: $1,365 | $1,123 Service and non-service cost reconciliation: FAS pension service cost: $(50) | $(50) Less: CAS pension cost: 1,735 | 1,568 FAS/CAS pension operating adjustment: 1,685 | 1,518 Non-service FAS pension expense: (320) | (874) Total FAS/CAS pension adjustment: $1,365 | $644 Less: pension settlement charge: — | 479 Total FAS/CAS pension adjustment - adjusted1: $1,365 | $1,123 1 The cost components in the table above relate only to the company's qualified defined benefit pension plans. The company recognized a noncash, non-operating pretax settlement charge of $479 million in the fourth quarter of 2025. Lockheed Martin Corporation Other Financial and Operating Information (unaudited; in millions, except for aircraft deliveries and weeks) Backlog: Dec. 31, 2025 | Dec. 31, 2024 Aeronautics: $59,435 | $62,763 Missiles and Fire Control: 46,650 | 38,783 Rotary and Mission Systems: 47,715 | 38,117 Space: 39,822 | 36,377 Total backlog: $193,622 | $176,040 Aircraft Deliveries: Quarters Ended Dec. 31, 2025 | Quarters Ended Dec. 31, 2024 | Years Ended Dec. 31, 2025 | Years Ended Dec. 31, 2024 F-35: 48 | 62 | 191 | 110 F-16: 4 | 7 | 16 | 16 C-130J: — | 8 | 2 | 21 Government helicopter programs: 35 | 25 | 90 | 72 Commercial helicopter programs: — | 1 | 2 | 1 International military helicopter programs: 11 | 8 | 17 | 17 Number of Weeks in Reporting Period1: 2026 | 2025 | 2024 First quarter: 12 | 13 | 13 Second quarter: 13 | 13 | 13 Third quarter: 13 | 13 | 13 Fourth quarter: 14 | 13 | 13 1 Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods.