Lockheed Martin Corporation 2024 Annual Report

Summary

This document contains Lockheed Martin Corporation’s 2024 Annual Report and Form 10-K filing for the fiscal year ended December 31, 2024. It details the company’s financial highlights, executive leadership letter, strategic security vision, risk factors, segment operational results, and consolidated audited financial statements.

Cover Page

LOCKHEED MARTIN CORPORATION 2024 ANNUAL REPORT LOCKHEED MARTIN

Financial Highlights

FINANCIAL HIGHLIGHTS

In millions, except per share data | 2024 | 2023 | 2022 Net Sales: $71, 043∣$ 67,571 | $65, 984 C o n so l i d a t e d O p er a t in g P r o f i t : 7, 013∣8, 507∣8, 348 S e g m e n tO p er a t in g P r o f i t : 6, 083∣7, 389∣7, 467 N e tE a r nin g s : 5, 336∣6, 920∣5, 732 D i l u t e d E a r nin g s P er C o mm o n S ha r e N e tE a r nin g s : 22.31∣27.55∣21.66 C a s h D i v i d e n d s P er C o mm o n S ha r e : 12.75∣12.15∣11.40 A v er a g eD i l u t e d C o mm o n S ha r es O u t s t an d in g : 239∣251∣265 C a s han d C a s h E q u i v a l e n t s :$ 2,483 | $1, 442∣$ 2,547 Total Assets: 55,617 | 52,456 | 52,880 Total Debt, net: 20,270 | 17,459 | 15,547 Total Equity: 6,333 | 6,835 | 9,266 Common Shares Outstanding at Year-End: 234 | 240 | 254 Net Cash Provided by Operating Activities: $6, 972∣$ 7,920 | $7, 802 C a p i t a l E x p e n d i t u r es : (1, 685) ∣ (1, 691) ∣ (1, 670) F r ee C a s h F l o w :$ 5,287 | $6, 229∣$ 6,132

NOTE: For additional information regarding the amounts presented above, see the Form 10-K portion of this Annual Report. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included on the pages preceding the back cover of this Annual Report.

Letter to Shareholders - Page I

Fellow Shareholders:

Throughout 2024, Lockheed Martin reinforced its position as a trusted national asset, embodying American innovation, ingenuity and exploration. Our 120,000 teammates worked every day to advance capabilities that enhance deterrence to armed conflict and provide our customers with decisive advantage in an increasingly complex and threatening global environment. Time and again, our mission-based solutions performed when our customers needed them most, advancing U.S. and allied interests and protecting our citizens.

• In October, Israel deployed F-35s in strikes against Iran, a country with advanced, sophisticated air defenses. According to U.K. Chief of Defence Staff Adm. Tony Radakin, Israel’s operation with the F-35 “destroyed Iran’s ability to produce ballistic missiles for a year and left Tehran with a strategic dilemma in how it responds. That is the power of fifth-generation aircraft, combined with exquisite targeting and extraordinary intelligence.” • In December, a U.S. military official confirmed forces successfully used THAAD in combat. The anti-missile system, forward-deployed by U.S. troops in Israel, helped to defend against an incoming medium-range ballistic missile fired by Iran-backed Houthi rebels in Yemen. • The effectiveness of F-16s in Eastern Europe showed why the aircraft continues to be a trusted solution to bolster air superiority among the U.S. and our allies. These aircraft, equipped with advanced avionics and weaponry, were instrumental in intercepting Russian cruise missiles, marking a substantial upgrade in Ukraine’s aerial combat and defense operations. • In December, we launched the seventh Lockheed Martin-designed and built Global Positioning System (GPS) III on an accelerated timeline to support the U.S. Space Force’s demand for secure, advanced positioning, navigation and timing signals.

These are just a few recent examples of Lockheed Martin’s commitment to innovate and build highly effective solutions that deter aggression and, when necessary, help America and its allies fight and win.

James D. Taiclet Chairman, President and Chief Executive Officer

Letter to Shareholders - Page II

21st Century Security® is our strategy to drive this continued innovation and ensure our customers always stay ahead of potential adversaries. Integrating digital technologies like 5G, artificial intelligence (AI), distributed cloud computing, and software-defined networks into the national defense enterprise delivers more advanced capabilities with greater speed, resiliency and interoperability.

Lockheed Martin made significant strides throughout the year to make 21st Century Security a reality for our customers.

• Advancing Air Dominance: We delivered more than 100 modernized TR-3-configured F-35s to the U.S. Air Force and its allies, beginning a new era of combat-proven air power. With TR-3, the F-35 is equipped to remain the cornerstone of the fighting force for decades to come. It will partner with next-gen and existing systems, and transformative autonomous technology, to create a team that dominates the skies. For example, a recent test paired two F-35s with an XQ-58A Valkyrie combat drone wingman, showcasing the seamless connectivity of the F-35 with an autonomous platform. Throughout 2025, we will mature full TR-3 combat capability and continue demonstrating piloted and unmanned innovations. • Driving AI Innovation: We added cutting-edge, open-source AI large language models from Meta, IBM and others to our suite of next-generation AI Factory tools to accelerate AI-driven development and production of national security capabilities for our customers. More than 50,000 Lockheed Martin developers, engineers and scientists are using AI tools. • Increasing Production of In-Demand Solutions: We doubled production capacity of proven solutions like HIMARS in part by deploying automation, robotics and factory simulation tools to maximize efficiency and meet increased demand from the U.S. Army and around the world. Similarly, we grew PAC-3 MSE production by 30% in 2024, reaching a new production-high, with another 20% growth planned for 2025. • Unlocking Autonomous Capabilities: We demonstrated the power of autonomous capabilities for the U.S. Navy through the service’s first live control of an unmanned air vehicle (UAS). In November, we integrated our MDCXTM autonomous platform with the Navy’s Unmanned Carrier Aviation Mission Control Station to control a General Atomics MQ-20 Avenger UAS. Using this technology, Navy pilots connected Beyond Line of Sight to the UAS and transmitted flight control commands and received mission systems data. We are also harnessing autonomy for the U.S. Army. With Sikorsky’s MATRIXTM system, we sent remote mission commands to an unmanned Black Hawk helicopter in real time from hundreds of miles away. We also conducted the first autonomous HIMARS demonstration. Once fully mature, this technology will increase safety, capability and efficiency for operators. • Enabling Real-Time Software Updates: We drastically decreased the amount of time needed for software updates to be delivered to assets in theater from months to hours. In partnership with the U.S. Navy (USN), we developed an Aegis Speed to Capability process that allows for small changes in software to be rapidly fielded, instead of waiting to incorporate them into the next major baseline upgrade to the combat system software. These software updates have been sent via satellite link to USN destroyers shooting down Houthi missiles and drones in the Red Sea. • Revolutionizing Homeland Defense: The Missile Defense Agency selected Lockheed Martin to deliver the nation’s new homeland missile defense capability, the Next Generation Interceptor (NGI). NGI will provide the most modern, reliable and technically advanced interceptor in the world, protecting the homeland against long-range ballistic missile threats. We are leveraging 21st century digital tools and advanced technologies to deliver the program at an accelerated pace. We are also drafting a comprehensive architecture to address the Trump Administration’s Golden Dome initiative.

Letter to Shareholders - Page III

These innovations are just the beginning of what 21st Century Security can do rapidly and cost efficiently for our armed forces. Through 1LMX, our comprehensive business and digital transformation program, we continue to drive efficiencies across our company by standardizing processes, modernizing systems, enhancing transparency and improving collaboration.

Together, 21st Century Security and 1LMX emphasis are driving new demand and growth, reflected in Lockheed Martin’s solid financial performance in 2024.

2024 Financial Results:

$5.3B Free Cash Flow*
$71.0B Sales
$6.1B Segment Operating Profit*
8.6% Segment Operating Margin*
$5.3B Net Earnings
$22.31 Earnings Per Share
$176B Year End Backlog

Throughout the year we executed a disciplined and dynamic capital allocation strategy to maximize shareholder value, a strategy we expect to continue in 2025.

Continuing to Soar in 2025 In 2025, we will continue to rapidly execute our 21st Century Security vision to build a more advanced, resilient and interoperable defense industrial base poised to meet the needs of our nation and its allies in an intensifying and complex geopolitical environment.

Lockheed Martin is well positioned to deliver proven capabilities that will defeat even the most modern threats to national security. We anticipate our growth in 2024 to continue in 2025 and the years ahead. We recognize our successes and opportunities would not be possible without your ongoing support as our shareholders and without the dedication and excellence of our Lockheed Martin workforce. Thank you.

As we look to the future, we remain committed to achieving peace through strength, while collaborating with our U.S. government partners and allies to foster a safer and more secure world in the years to come.

James D. Taiclet Chairman, President and Chief Executive Officer

Corporate Directory

CORPORATE DIRECTORY (As of March 1, 2025)

BOARD OF DIRECTORS:

James D. Taiclet: Chairman, President and Chief Executive Officer, Lockheed Martin Corporation
Thomas J. Falk: Independent Lead Director, Retired Chairman and Chief Executive Officer, Kimberly-Clark Corporation
John C. Aquilino: Retired Admiral, United States Navy
David B. Burritt: President and Chief Executive Officer, United States Steel Corporation
Bruce A. Carlson: Retired General, United States Air Force
John M. Donovan: Retired Chief Executive Officer, AT&T Communications, LLC
Joseph F. Dunford, Jr.: Senior Managing Director and Partner, Liberty Strategic Capital; Retired General, United States Marine Corps
Vicki A. Hollub: President and Chief Executive Officer, Occidental Petroleum Corporation
Debra L. Reed-Klages: Retired Chairman, President and Chief Executive Officer, Sempra Energy
Heather A. Wilson: President, University of Texas at El Paso; Former Secretary, United States Air Force
Patricia E. Yarrington: Retired Chief Financial Officer, Chevron Corporation

EXECUTIVE OFFICERS:

James D. Taiclet: Chairman, President and Chief Executive Officer
Timothy S. Cahill: President, Missiles and Fire Control
Stephanie C. Hill: President, Rotary and Mission Systems
Robert M. Lightfoot: President, Space
Jesus Malave: Chief Financial Officer
Kevin J. O’Connor: Senior Vice President, General Counsel and Corporate Secretary
H. Edward Paul: Vice President and Controller
Maria A. Ricciardone: Vice President, Treasurer and Investor Relations
Frank A. St. John: Chief Operating Officer
Gregory M. Ulmer: President, Aeronautics

Form 10-K - Cover Page

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 Commission file number 1-11437

LOCKHEED MARTIN CORPORATION Maryland | 52-1893632 6801 Rockledge Drive, Bethesda, Maryland 20817 (301) 897-6000 Securities registered pursuant to Section 12(b) of the Act: Common Stock, $1 p a r v a l u e (L M T), N e w Y or k S t oc k E x c han g e A g g r e g a t e ma r k e t v a l u eo f co mm o n s t oc k h e l d b y n o n - a f f i l ia t es a so f J u n e 28, 2024 :$ 110.8 billion Common stock shares outstanding as of January 23, 2025: 235,385,902 shares

Form 10-K - Table of Contents

PART I ITEM 1. Business (Page 3) ITEM 1A. Risk Factors (Page 10) ITEM 1B. Unresolved Staff Comments (Page 22) ITEM 1C. Cybersecurity (Page 22) ITEM 2. Properties (Page 24) ITEM 3. Legal Proceedings (Page 24) ITEM 4. Mine Safety Disclosures (Page 24) Information about our Executive Officers (Page 25)

PART II ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities (Page 27) ITEM 6. [Reserved] (Page 28) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Page 29) ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk (Page 52) ITEM 8. Financial Statements and Supplementary Data (Page 53) ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure (Page 98) ITEM 9A. Controls and Procedures (Page 98) ITEM 9B. Other Information (Page 100) ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections (Page 100)

PART III ITEM 10. Directors, Executive Officers and Corporate Governance (Page 100) ITEM 11. Executive Compensation (Page 100) ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters (Page 101) ITEM 13. Certain Relationships and Related Transactions, and Director Independence (Page 101) ITEM 14. Principal Accounting Fees and Services (Page 101)

PART IV ITEM 15. Exhibits and Financial Statement Schedules (Page 102) ITEM 16. Form 10-K Summary (Page 105) SIGNATURES (Page 106)

Form 10-K - Item 1. Business

ITEM 1. Business

General: Lockheed Martin is a global aerospace and defense company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its main customer is the U.S. Government (accounting for 73% of 2024 net sales, including 65% from the Department of Defense).

Business Segments:

Aeronautics: Research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft (F-35 Lightning II, C-130 Hercules, F-16 Fighting Falcon, F-22 Raptor, Skunk Works).
Missiles and Fire Control (MFC): Air and missile defense systems, tactical missiles, precision strike weapon systems, fire control systems (PAC-3, THAAD, MLRS, PrSM, JASSM, LRASM, Hellfire, HIMARS, Javelin, IRST21, SNIPER).
Rotary and Mission Systems (RMS): Military and commercial helicopters, sea/land-based missile defense systems, radar systems, combat systems (Black Hawk, Seahawk, CH-53K King Stallion, Aegis Combat System, LCS, C2BMC, AIR 6500).
Space: Satellites, space transportation systems, strategic and advanced strike systems (Next Gen OPIR, Trident II D5 Fleet Ballistic Missile, Orion spacecraft, NGI, GPS III, 50% ownership in United Launch Alliance - ULA).

Form 10-K - Consolidated Statements of Earnings

Consolidated Statements of Earnings (in millions, except per share data)

Years Ended December 31 | 2024 | 2023 | 2022 Net Sales: Products: $59, 277∣$ 56,265 | $55, 466 S er v i ces : 11, 766∣11, 306∣10, 518 T o t a l N e tS a l es :$ 71,043 | $67, 571∣$ 65,984 Cost of Sales: Products: $(54, 852) ∣$ (50,206) | $(49, 357) S er v i ces : (10, 217) ∣ (10, 027) ∣ (9, 252) I m p ai r m e n t an d se v er an cec ha r g es : (87) ∣ (92) ∣ (100) O t h er u na l l oc a t e d, n e t : 1, 043∣1, 233∣1, 012 T o t a l C os t o f S a l es :$ (64,113) | $(59, 092) ∣$ (57,697) Gross Profit: 6,930 | 8,479 | 8,287 Other income, net: 83 | 28 | 61 Operating Profit: 7,013 | 8,507 | 8,348 Interest expense: (1,036) | (916) | (623) Non-service FAS pension income (expense): 62 | 443 | (971) Other non-operating income (expense), net: 181 | 64 | (74) Earnings Before Income Taxes: 6,220 | 8,098 | 6,680 Income tax expense: (884) | (1,178) | (948) Net Earnings: $5, 336∣$ 6,920 | $5,732

Earnings Per Common Share: Basic: $22.39∣$ 27.65 | $21.74 D i l u t e d :$ 22.31 | $27.55∣$ 21.66

Form 10-K - Consolidated Balance Sheets

Consolidated Balance Sheets (in millions, except par value)

Liabilities and Equity: Accounts payable: $2, 222∣$ 2,312 Salaries, benefits and payroll taxes: 3,125 | 3,133 Contract liabilities: 9,795 | 9,190 Current maturities of long-term debt: 643 | 168 Other current liabilities: 3,635 | 2,134 Total current liabilities: $19, 420∣$ 16,937 Long-term debt, net: 19,627 | 17,291 Accrued pension liabilities: 4,791 | 6,162 Other noncurrent liabilities: 5,446 | 5,231 Total Liabilities: $49, 284∣$ 45,621 Stockholders’ Equity: Common stock, $1 p a r v a l u e : 234∣240 A dd i t i o na l p ai d - in c a p i t a l : —∣— R e t ain e d e a r nin g s : 14, 551∣15, 398 A cc u m u l a t e d o t h er co m p r e h e n s i v e l oss : (8, 452) ∣ (8, 803) T o t a l S t oc k h o l d er s^{'} E q u i t y :$ 6,333 | $6, 835 T o t a l L iabi l i t i es an d E q u i t y :$ 55,617 | $52,456

Form 10-K - Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows (in millions)

Use of Non-GAAP Financial Measures

USE OF NON-GAAP FINANCIAL MEASURES

Segment Operating Profit / Margin: In millions | 2024 | 2023 | 2022 Net sales: $71, 043∣$ 67,571 | $65, 984 C o n so l i d a t e d o p er a t in g p r o f i t :$ 7,013 | $8, 507∣$ 8,348 Unallocated items: FAS/CAS operating adjustment: 1,624 | 1,660 | 1,709 Intangible asset amortization expense: (247) | (247) | (248) Impairment and severance charges: (87) | (92) | (100) Other, net: (360) | (203) | (480) Less: Total unallocated items: 930 | 1,118 | 881 Business segment operating profit (Non-GAAP): $6, 083∣$ 7,389 | $7,467 Consolidated operating margin: 9.9% | 12.6% | 12.7% Segment operating margin (Non-GAAP): 8.6% | 10.9% | 11.3%

Free Cash Flow Reconciliation: In millions | 2024 | 2023 | 2022 Cash from operations: $6, 972∣$ 7,920 | $7, 802 C a p i t a l e x p e n d i t u r es : (1, 685) ∣ (1, 691) ∣ (1, 670) F r eec a s h f l o w :$ 5,287 | $6, 229∣$ 6,132

General Information

GENERAL INFORMATION

TRANSFER AGENT, REGISTRAR AND DIVIDEND DISBURSING AGENT: Computershare Trust Company, N.A., P.O. Box 43006, Providence, RI 02940 Telephone: 1-877-498-8861 | Internet: www.computershare.com/investor

INDEPENDENT AUDITORS: Ernst & Young LLP, 1775 Tysons Boulevard, Tysons, VA 22102 | Telephone: 703-747-1000

COMMON STOCK: Stock symbol: LMT Listed: New York Stock Exchange (NYSE)

Lockheed Martin Corporation 6801 Rockledge Drive, Bethesda, MD 20817 www.lockheedmartin.com