Lockheed Martin

Lockheed Martin was created on March 15, 1995, through the merger of Lockheed Corporation and Martin Marietta, two giants of American aerospace. Lockheed traced its roots to the Loughead Aircraft Manufacturing Company, founded in 1912 by Allan and Malcolm Loughead, while Martin Marietta descended from the Glenn L. Martin Company, established in 1912. The merger was driven by post-Cold War defense budget cuts, prompting consolidation across the industry. The combined company inherited a portfolio that included the SR-71 Blackbird, the C-130 Hercules, and the Titan rockets.

Lockheed Martin's most prominent program is the F-35 Lightning II, a family of stealth multirole fighters developed for the U.S. and allied nations. The F-35 is the most expensive weapons system in history, with a projected lifetime cost exceeding $1.7 trillion.¹ Other notable aircraft include the C-130J Super Hercules, the F-16 Fighting Falcon, and the U-2 Dragon Lady. In space, the company builds the Orion spacecraft for NASA's Artemis program and the Trident II submarine-launched ballistic missile. Its missile defense portfolio includes the Terminal High Altitude Area Defense (THAAD) system.

Lockheed Martin is organized into four business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. The company consistently ranks as the world's largest defense contractor by revenue, with 2023 sales of $67.6 billion. It is a component of the S&P 500 and Dow Jones Industrial Average. The company's largest customer is the U.S. government, which accounts for roughly 70% of revenue. Lockheed Martin also has significant international sales, particularly to NATO allies and Japan.

Lockheed Martin has faced legal and ethical controversies. In 2009, it paid $4 million to settle allegations of overbilling on a U.S. Air Force contract. The F-35 program has been criticized for cost overruns and technical problems. In 2021, the company agreed to pay $70 million to settle a Securities and Exchange Commission investigation into improper payments to a foreign official.² Additionally, the company has been a target of protests over its role in weapons manufacturing, including the production of cluster munitions.

Beyond its headline programs, Lockheed Martin has a history of secretive projects. The Skunk Works, its advanced development division, produced the U-2, SR-71, and the stealth technology used in the F-117 Nighthawk. The company also developed the Polaris and Poseidon submarine-launched missiles. In the 1960s, it built the Corona reconnaissance satellite system, which was declassified in 1995. Lockheed Martin has also been involved in nuclear fusion research, partnering with the U.S. Air Force on a compact fusion reactor concept, though progress has been slow.³ The company's early history includes the tragic crash of the Lockheed L-188 Electra in 1960, which led to a major redesign.

Skunk Works

Lockheed Martin's advanced development division, known for rapid, secretive prototyping.

F-35 Lightning II

A family of stealth multirole combat aircraft developed for the U.S. and allies.

THAAD

Terminal High Altitude Area Defense, a missile defense system.