Lockheed Martin (LMT) operates in five business segments:
- Information Systems & Global Solutions (or IS&GS)
- Missiles and Fire Control (or MFC)
- Mission Systems and Training (or MST)
- Space Systems
The company earns maximum revenues from the F-35 II joint striker program. The program is part of its Aeronautics segment. Almost 17% of the company’s total sales and 50% of the Aeronautic divisions’ sales come from this program. Some of the major contractors for the F-35 program—aside from LMT—include Northrop Grumman Corp. (NOC), BAE Systems (BAESY), and United Technologies Corporation (UTX). These companies are part of the Industrial Select Sector SPDR (XLI).
The division’s other major contracts include the production of the F-16 and C130 J Super Hercules aircraft. The division also has modernization contracts for the C-5 galaxy aircraft to the C-5M super galaxy aircraft. The entire Aeronautics segment earned $14.1 billion in 2013. It contributed 31% of the company’s total sales.
Both IS&GS and Space Systems contributed 18% of the company’s total sales. The IS&GS segment earned $8.4 billion in revenues. It’s the second highest revenue segment for LMT. Space Systems earned revenues of $8 billion. With $7.8 billion revenues, the MFC segment contributed ~17% of the company’s total sales. The MST segment contributed 16% of the total sales with $7.1 billion in revenues.