LMT · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
LOCKHEED MARTIN CORP · 2026-07-23 · Importance 45 · Surprise 50 · In source text
The effective tax rate fell to 15.7% in the quarter and 15.9% for the six months ended June 28, 2026, compared with 18.0% and 16.3% in the comparable 2025 periods. The lower 2026 rates were primarily caused by lower interest expense on uncertain tax positions and the absence of 2025 reach-forward losses. The Tax Act and Treasury Notice 2026-7 made Lockheed Martin no longer subject to CAMT for 2026 and are expected to reduce federal income-tax payments during 2026. Six-month income-tax expense increased to $628 million from $399 million because earnings before tax increased substantially despite the lower effective rate.
Key facts
- LOCKHEED MARTIN CORP expects to make reduced federal income tax payments for 2026 as a result of the Tax Act and Treasury Notice 2026-7, and is no longer subject to CAMT this year. source
- Effective income tax rates were 15.7% and 15.9% for the quarter and six months ended June 28, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | committed | — | LOCKHEED MARTIN CORP expects to make reduced federal income tax payments for 2026 as a result of the Tax Act and Treasury Notice 2026-7,… |
| cash | positive | committed | — | LOCKHEED MARTIN CORP expects to make reduced federal income tax payments for 2026 as a result of the Tax Act and Treasury Notice 2026-7,… |