How does Lockheed Martin (LMT) make money?

Lockheed Martin (LMT) generates revenue primarily from Aeronautics, which accounted for 40.2% of total revenue in TTM through Q2 2026. The company reported $77B in revenue and converted 8.2% of it into net profit, equivalent to roughly $6.29B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reported a gross profit margin of 11.8% in TTM through Q2 2026, equivalent to $9.09B in gross profit on $77B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reported an operating profit margin of 11.9% in TTM through Q2 2026, equivalent to $9.15B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reported a net profit margin of 8.2% in TTM through Q2 2026, equivalent to $6.29B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Lockheed Martin (LMT) profitable?

Yes. Lockheed Martin (LMT) reported $6.29B in net income for TTM through Q2 2026, with a net profit margin of 8.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Lockheed Martin (LMT) invest in research and development?

Lockheed Martin (LMT) invested $665M in research and development during TTM through Q2 2026, roughly 0.9% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Lockheed Martin (LMT) spend on capital expenditures?

Lockheed Martin (LMT) spent $1.67B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 2.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Lockheed Martin (LMT) generate?

Lockheed Martin (LMT) generated $8.73B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 11.3%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Lockheed Martin (LMT)?

Lockheed Martin (LMT) had an effective tax rate of 15.3% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reports revenue across 4 reportable product segments, led by Aeronautics at 40.2% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Lockheed Martin (LMT) generate most of its revenue?

UNITED STATES is the largest geographic market for Lockheed Martin (LMT), accounting for 48.3% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Lockheed Martin Makes Money: 2026 Visual Revenue Map

Lockheed Martin (LMT) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 28, 2026 (reported July 23, 2026).

Lockheed Martin (LMT) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Lockheed Martin (LMT), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Aeronautics	$31B	40.2%
Rotary and Mission Systems	$17.3B	22.4%
Missiles And Fire Control	$15.2B	19.8%
Space	$13.6B	17.6%
Total	$77B	100%

Aeronautics$31B
Rotary and Mission Systems$17.3B
Missiles And Fire Control$15.2B
Space$13.6B
Total$77B

Lockheed Martin (LMT) Revenue by Geography — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Lockheed Martin (LMT), TTM through Q2 2026
Region	Revenue (USD)	% of total
UNITED STATES	$26.6B	48.3%
Europe	$12.3B	22.3%
Asia Pacific	$9.72B	17.7%
Middle East	$3.34B	6.1%
Other Region	$3.12B	5.7%
Total	$55B	100%

UNITED STATES
Europe
Asia Pacific
Middle East
Other Region
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Lockheed Martin (LMT) reports revenue across 4 reportable product segments; the largest segment was Aeronautics at 40.2%, followed by Rotary and Mission Systems (22.4%) and Missiles And Fire Control (19.8%). Geographically, UNITED STATES accounted for 48.3% of revenue, followed by Europe (22.3%) and Asia Pacific (17.7%).

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