Lockheed Martin
Overview
Lockheed Martin generates space revenue primarily through long-term cost-plus and fixed-price government contracts with NASA and the U.S. Space Force. The Space segment — covering Orion crew vehicles, GPS III/IIIF navigation satellites, Next-Gen OPIR missile-warning satellites, and SDA tracking-layer constellations — contributes roughly 17% of total company revenue. Stable multi-decade programs provide predictable backlog-to-revenue conversion.
Moat: Lockheed Martin holds sole-source positions on Orion (NASA Artemis), GPS III/IIIF, and Next-Gen OPIR — three flagship national-security and exploration programs where switching costs are prohibitive. With 124 SDA satellites on contract across three tranches, the company is the leading tracking-layer integrator in the Proliferated Warfighter Space Architecture.
Business
Primary customers
- Defense: U.S. Department of Defense
- Defense: U.S. Space Force
- Government: NASA
- Defense: Space Development Agency
- Defense: U.S. Air Force
Sectors
Defense & Space Systems · Human Spaceflight · Missile Warning · Navigation Satellites
Key Products
- Orion Crew Vehicleoperational
NASA's deep-space crew capsule for Artemis lunar program; LMT is prime contractor for development, production, and operations through Artemis VIII.
First flight: 2022-11-16
- GPS Block III / IIIFoperational
Next-generation GPS navigation satellites for the U.S. Space Force; GPS III provides 3x signal accuracy and 8x anti-jamming power vs. legacy satellites.
First flight: 2018-12-23
- Next-Gen OPIR (Overhead Persistent Infrared)development
Missile-warning GEO satellites replacing SBIRS; provides global ballistic and hypersonic missile detection for USSF.
- SDA Tracking Layer Satellitesdevelopment
Proliferated LEO missile-warning and tracking satellites for Space Development Agency Tranche 1, 2, and 3 constellations.
- Titian / Hypersonic Glide Vehicle Interceptordevelopment
Space-based interceptor and hypersonic glide vehicle defense concepts under USSF/MDA study contracts.
Government Contracts
| Agency | Program | Amount | Year | Source |
|---|---|---|---|---|
| NASA | Orion Crew Vehicle (Artemis) | ~$4.7B (multi-mission through Artemis VIII) | 2019 | |
| USSF | GPS Block IIIF Satellites (SVs 11–22) | $4.1B (total contract value through SV 22) | 2024 | |
| USSF | Next-Generation OPIR (Overhead Persistent Infrared) | $8.2B total program (contract extension $977.5M, June 2024) | 2018 | |
| SDA | Tranche 3 Tracking Layer (18 satellites) | $1.1B | 2025 | |
| SDA | Tranche 2 Tracking Layer (18 satellites) | ~$900M (part of $2.5B T2 awards) | 2024 |
Near-term Catalysts
- 2026-Q2
Artemis II crewed lunar flyby (LMT Orion prime)
First crewed Artemis mission validates LMT Orion at full operational capability; milestone payments and follow-on contract options through Artemis VIII.
- 2026-Q3
First Next-Gen OPIR GEO satellite on-orbit testing
OPIR GEO-1 achieving IOC triggers award-fee payments and positions LMT to capture OPIR HEO follow-on; $8.2B total program with GEO-2 and HEO birds to follow.
Top Risks
- F-35 production and sustainment cost overruns remain the largest risk — the program accounts for ~27% of total LMT revenue and any new fixed-price concessions could impair earnings.
- SDA tracking-layer satellites are fixed-price development contracts; cost overruns like those seen on Boeing/SLS could compress Space segment margins.
- Federal budget continuing resolutions and potential DoD spending cuts under fiscal-year appropriations uncertainty could delay contract awards or reduce program funding.
Recent Milestones
- 2026-01
FY2025 results: Space segment revenue $13.0B, total revenue $75.0B, record backlog $194B
- 2025-12
Won $1.1B SDA Tranche 3 Tracking Layer contract for 18 satellites
- 2025-05
Completed Orion spacecraft for Artemis II — delivered to NASA Exploration Ground Systems
- 2024-06
Next-Gen OPIR $977.5M contract extension awarded by Space Systems Command
- 2024-01
Awarded SDA Tranche 2 Tracking Layer contract for 18 satellites
Recent News
- 2026-01
- SDA awards $1.1B Tranche 3 Tracking Layer contract to Lockheed Martin for 18 satellitesLockheed Martin Newsroom2025-12
- Lockheed Martin completes Orion development for Artemis II mission to the MoonLockheed Martin Newsroom2025-05
- 2025-05
- Lockheed Martin advances first Next-Gen OPIR missile warning satellite toward launchLockheed Martin Newsroom2024-12
What investors should know
Q1What does Lockheed Martin do in space?⌄
Q2How does Lockheed Martin make money in space?⌄
Q3Who are Lockheed Martin's primary customers?⌄
Q4What is Lockheed Martin's competitive moat in space?⌄
Q5What are the top risks for Lockheed Martin investors?⌄
Q6What near-term catalysts could move the Lockheed Martin stock?⌄
Q7How does Lockheed Martin compare to its closest peer Northrop Grumman?⌄
Peers
Compare side-by-side →Sources & References
Agency Document
- SDA Tranche 3 Award Announcement · 2025-12-19
- NASA Orion Production Contract · 2019-07-19
SEC Filing
- SEC 10-K FY2025 · 2026-01-29
Investor Relations
Press Release
- LMT Q4/FY2025 Earnings Release · 2026-01-29
- LMT Orion Artemis II Delivery · 2025-05-01
- LMT SDA T2 Tracking Layer Award · 2024-01-11