LMT · 10-Q · 2026Q2 · Full report

Contract Profit Adjustments

LOCKHEED MARTIN CORP · 2026-07-23 · Importance 40 · Surprise 42

During the six months ended June 28, 2026, Lockheed Martin recorded $125 million of unfavorable profit adjustments on F-16, $95 million on RMS Heavy Lift and $80 million on RMS Seahawk programs. The F-16 adjustment reflected production performance and development delays, while the Heavy Lift adjustment reflected production performance and the Seahawk adjustment reflected production performance and schedule delays. In the quarter ended June 29, 2025, the company recorded a $950 million loss on a classified Aeronautics program and $570 million and $95 million losses on RMS CMHP and TUHP programs, respectively. These reach-forward losses materially affected year-over-year sales, operating profit and margins in Aeronautics and RMS.

Key facts

• During the second quarter of 2025 LOCKHEED MARTIN CORP recorded impairment and other charges totaling $66 million ($52 million, or $0.22 per share, after-tax) primarily for the write-off of fixed assets resulting from the U.S. Air Force’s NGAD competition and down-select decision. source
• LOCKHEED MARTIN CORP recorded unfavorable profit adjustments of $125 million on the F-16 program and $95 million on the C-130 program during the six months ended June 28, 2026. source
• LOCKHEED MARTIN CORP recorded unfavorable profit adjustments of $95 million on Heavy Lift programs and $80 million on Seahawk programs at RMS during the six months ended June 28, 2026. source