Must-know: Where Lockheed Martin earns its revenues

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Nov. 26 2019, Updated 10:39 p.m. ET

Business segments

Lockheed Martin (LMT) operates in five business segments:

  1. Aeronautics
  2. Information Systems & Global Solutions (or IS&GS)
  3. Missiles and Fire Control (or MFC)
  4. Mission Systems and Training (or MST)
  5. Space Systems

Business Segments

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).

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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.

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