Lockheed Martin
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Lockheed Martin (LMT) investor relations material

Lockheed Martin Citi's Global Industrial Tech & Mobility Conference 2026 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Citi's Global Industrial Tech & Mobility Conference 2026 summary18 Feb, 2026

Strategic initiatives and digital transformation

  • Significant progress on three major strategic initiatives: production system resilience, digital technology integration, and international business growth.

  • New ERP system implementation is 60% complete, part of an $6B, 8-year digital transformation.

  • Framework agreements with the U.S. government enable seven-year contracts, supporting commercial practices and supply chain investments.

  • Digital and AI technologies are being integrated into defense missions, including autonomous aircraft and helicopters.

  • International sales are outpacing domestic, with expanded co-production and teaming globally.

Financial performance and outlook

  • Strong prior year performance and investments set up for a robust current year, with guidance in line with previous calls.

  • First quarter faces tough year-over-year comparisons due to non-recurring events and fewer weeks.

  • Cash flow timing impacted by new billing system, with potential negative free cash flow in Q1 but full-year guidance remains solid.

Key growth themes and technology integration

  • Focus on air superiority, missile defense, and space as major growth drivers.

  • Continuous hardware, firmware, and software upgrades enhance mission capabilities, exemplified by F-35 and Aegis systems.

  • AI-driven improvements enable rapid adaptation to emerging threats, such as in the Red Sea.

  • Golden Dome initiative integrates space-based and ground-based systems for scalable air and missile defense.

F-35: How will 6th-gen tech be integrated?
MFC framework agreements: conversion & margins?
Capital allocation: CapEx vs. shareholder returns?
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Frequently asked questions

One of the main actors in the defense industry

Lockheed Martin is undoubtedly one of the main actors in the defense industry. As one of the world’s largest and most well-diversified defense contractors they produce fighter jets, warfare electronics, hypersonics, space and satellite systems, and more. Some of Lockheed Martin’s competitors include Saab, Boeing, and BAE Systems.

The main business areas

With over 114,000 employees spread over more than 370 global facilities, the company operates in four main business areas: Aeronautics, Including tactical aircraft and aeronautical R&D. Missiles and Fire Control, including PAC-3 missiles and the terminal high altitude area defense system. Rotary and Mission Systems, with Sikorsky helicopters, maritime and radar systems, and cyber capabilities. And then Space, including development of commercial and government satellites, as well as deep space exploration. 

Long-stretching contracts

With a majority of its customer base consisting of the U.S. Department of Defense and U.S. federal government agencies, their programs are blessed with long-stretching contracts. As a reference of their contractual backlog and recurring revenue, the company's iconic F-35 fighter jet first flew in 2006, and is scheduled to stay in service until year 2070. 

Fun fact: if you’ve seen the latest Top Gun: Maverick movie, the hypersonic jet in the opening scene codenamed “Darkstar,” is actually based on the Lockheed Martin SR-52. 

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