Lockheed Martin Corporation (LMT) SEC Filings & Earnings Calls

F-35 contract negotiation risk

“We remain in negotiations with the U.S. Government on the production contracts for F-35 lots 20 and higher. Our costs incurred began to exceed the current contractual authorization and funding on the Lot 20 advance acquisition contract during the third quarter of 2026.” · word for word

Program execution risk

“During the nine months ended September 27, 2026, we recorded unfavorable profit adjustments of $170 million on the F-16 program at Aeronautics as a result of production performance and development delays.” · word for word

Tariff cost risk

“Increases in costs due to tariffs may impact our cash flows, as we may not be able to fully recover these costs.” · word for word

F-35 Lot 20 contract negotiations risk: costs exceeding authorization, potential negative impact on results and cash flows.

“The company's costs incurred began to exceed the current contractual authorization and funding on the Lot 20 advance acquisition contract during the third quarter of 2026. Without additional contractual authorization and funding from the U.S. Government, the company's results of operations, cash flows, and financial condition will be negatively impacted in f”

Dependence on government contracts and classified programs introduces execution and political risk.

“Prior year reach-forward losses of $1.6 billion on a classified program at Aeronautics.” · word for word

High backlog concentration in a single contract (THAAD) may create dependency.

“Record backlog of $230 billion, inclusive of the multi-year contract to produce THAAD interceptors.” · word for word

Program Execution Risk

“During the six months ended June 28, 2026, we recorded unfavorable profit adjustments of $125 million on the F-16 program at Aeronautics as a result of production performance and development delays, $95 million on the C-130 program at Aeronautics as a result of continued diminishing manufacturing source integration challenges and associated delivery delays” · word for word

Tariff Cost Risk

“Increases in costs due to tariffs may impact our cash flows, as we may not be able to fully recover these costs” · word for word

Fixed-Price Contract Loss Risk

“There are certain programs where there is a risk of additional losses, including Aeronautics, MFC and RMS business segments.” · word for word

U.S. Government Payment Policy Risk

“The U.S. Government has indicated that it would consider progress payments as the baseline for negotiating payment terms on fixed-price contracts, rather than performance-based payments.” · word for word

Program execution risk on F-16 and C-130

“We recorded unfavorable profit adjustments of $125 million on the F-16 program as a result of production performance and development delays, $85 million on the C-130 program as a result of continued diminishing manufacturing source integration challenges and associated delivery delays.” · word for word

Tariff cost impact

“Increases in costs due to tariffs may impact our cash flows, as we may not be able to fully recover these costs, and even if recovery is possible, it may not occur in the same period as the incurred costs.” · word for word

Working capital pressure

“Net cash provided by operating activities during the quarter ended March 29, 2026 decreased $1.2 billion compared to the same period in 2025. The decrease in cash from operations was primarily due to higher working capital largely as a result of timing of billing activities.” · word for word

Free cash flow negative in Q1 due to working capital timing; full year guidance implies strong H2 cash generation.

“Free cash flow was $(291) million in Q1 2026 vs $955 million in Q1 2025.” · word for word

U.S. Government Budget Uncertainty

“budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling and government shutdowns, and changing funding and acquisition priorities” · word for word

Fixed-Price Contract Risk

“the risks inherent in preparing estimates for fixed-price contracts (particularly for complex and technologically advanced programs)” · word for word

Supply Chain Disruption

“performance and/or financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers” · word for word

Tariff and Trade Policy Risk

“foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences and other trade restrictions” · word for word

Classified program losses of $950M in Aeronautics and $570M in RMS during 2025; pension settlement charge $479M.

“Losses of $950M on classified program at Aeronautics; $570M on CMHP and $95M on TUHP at RMS; pension settlement charge $479M.”

Program Execution Risk

“The impact in 2025 includes reach-forward losses of $950 million on an ongoing classified program at our Aeronautics business segment, $570 million on Canadian Maritime Helicopter Program (CMHP) and $95 million on Türkish Utility Helicopter Program (TUHP) at our RMS business segment.” · word for word

Supply Chain Disruption

“We have experienced, and continue to experience, supply chain challenges, including supplier shortages and performance issues.” · word for word

Tariff Cash Flow Impact

“Tariffs that have been enacted or expanded by the U.S. or other countries had an impact of approximately $485 million on our cash flows during the year ended December 31, 2025.” · word for word

Pension Expense Volatility

“Non-service FAS pension expense in 2025 was $874 million, compared to non-service FAS pension income of $62 million in 2024.” · word for word

Non-cash charge reduces reported earnings but no cash impact

“$480M settlement charge not included in prior 2025 financial outlook”