Lockheed Martin (LMT) risk factors, FY2025 10-K

Lockheed Martin's FY2025 10-K, filed Jan 29, 2026, lists 19 risk factors in 2 groups. Against the prior year's 23: 4 dropped, 9 substantially reworded.

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Risk factors listed
192 groups
New this year
0vs 23 last year
Dropped
4since the prior 10-K
Substantially reworded
9of those kept
Section length
12k wordsItem 1A

What the changes say

  • The F-35 program contribution rose from 26% to 27% of total consolidated sales.
  • Cybersecurity risks were updated to specifically target the U.S. defense industrial base.
  • Pension risks were updated to warn of earlier or larger required contributions.

What changed since the prior 10-K

Dropped

  • DroppedRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    contract exceed total estimates of the transaction price. When this occurs, a provision for the entire loss is determined at the contract level and is recorded in the period in which the loss is evident

  • DroppedRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    prevent or lessen the benefit of collaboration. We may not be successful in identifying or developing emerging technologies and may spend significant resources on projects that ultimately are unsuccessful or yield a low return on the amount invested

  • DroppedRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    behalf who have access to export controlled, classified or other sensitive information could also adversely affect our business and reputation

  • DroppedRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    operations. We also could be adversely affected by, or liable for, actions taken by these joint ventures that we do not control, including violations of anti-corruption, import and export, taxation and anti-boycott laws

Reworded

  • 80% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    Cyber-attacks and other security threats and disruptions could have a material adverse effect on our business

    Added specific mention of the U.S. defense industrial base as a target for nation-state cyber actors.

  • 77% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    Our profitability and cash flow may vary based on the mix of our contracts and programs, our performance, and our ability to estimate and control costs

    Clarified that profitability and cash flow vary based on contract mix and performance.

    Was: Our profitability and cash flow may vary based on the mix of our contracts and programs, our performance, and our ability to control costs

  • 50% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    Changes in tax laws and regulations and interpretations or exposure to additional tax liabilities could adversely affect our financial results

    Removed specific reference to the 2017 Tax Cuts and Jobs Act R&D capitalization amortization period.

    Was: Changes in tax laws and regulations or exposure to additional tax liabilities could adversely affect our financial results

  • 49% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    Our success depends, in part, on our ability to develop new technologies, products and services and efficiently produce and deliver existing products

    Retained existing wording on technology development and joint all-domain operations.

  • 45% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    If we fail to successfully complete or manage acquisitions, divestitures, equity investments and other transactions or if acquired entities or equity investments fail to perform as expected, our financial results, business and future prospects could be harmed

    Added operating and other synergies to the M&A integration risk factors.

  • 44% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    Geopolitical, macroeconomic and public health events and conditions could adversely affect our business, financial condition and operating results

    Added specific references to U.S. economic sanctions and export controls impacting operations.

  • 38% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    Pension funding requirements and costs are dependent on return on pension assets and other economic and actuarial assumptions which, if changed, may cause our future earnings and cash flow to fluctuate significantly and affect the affordability of our products and services

    Added warning that lower pension asset returns could require earlier or excess contributions, reducing free cash flow.

  • 35% rewrittenRisks Related to our Reliance on Government Contracts, our Industry and the Economy

    The F-35 program comprises a material portion of our revenue and reductions or delays in funding for this program and risks related to performance, schedule, cost and requirements of the program could adversely affect our performance

    Updated F-35 sales contribution from 26% in 2024 to 27% in 2025.

  • 22% rewrittenRisks Related to Ownership of our Common Stock

    There can be no assurance that we will continue to pay or increase our dividend or to repurchase shares of our common stock

    Was: There can be no assurance that we will continue to increase our dividend or to repurchase shares of our common stock

All 19 risk factors

Headings as the filing states them, in filing order.

Risks Related to our Reliance on Government Contracts, our Industry and the Economy

  1. 01overall budget environment and whether development programs transition to production and the timing of such transition, all of which are dependent on U.S. Government authorization and funding
  2. 02The F-35 program comprises a material portion of our revenue and reductions or delays in funding for this program and risks related to performance, schedule, cost and requirements of the program could adversely affect our performance35% rewritten
  3. 03Competition and changing customer procurement policies could adversely affect our business and financial results
  4. 04Our profitability and cash flow may vary based on the mix of our contracts and programs, our performance, and our ability to estimate and control costs77% rewritten
  5. 05We are heavily dependent on suppliers and if our subcontractors or other suppliers or teaming agreement or joint venture partners fail to perform their obligations, our performance and ability to win future business could be adversely affected
  6. 06Our success depends, in part, on our ability to develop new technologies, products and services and efficiently produce and deliver existing products49% rewritten
  7. 07Geopolitical, macroeconomic and public health events and conditions could adversely affect our business, financial condition and operating results44% rewritten
  8. 08International sales may pose different economic, regulatory, competition and other risks
  9. 09We may be unable to benefit fully from or adequately protect our intellectual property rights or use third-party intellectual property, which could negatively affect our business
  10. 10Our business and financial performance depends on us identifying, attracting and retaining a highly skilled workforce
  11. 11Cyber-attacks and other security threats and disruptions could have a material adverse effect on our business80% rewritten
  12. 12If we fail to successfully complete or manage acquisitions, divestitures, equity investments and other transactions or if acquired entities or equity investments fail to perform as expected, our financial results, business and future prospects could be harmed45% rewritten
  13. 13Pension funding requirements and costs are dependent on return on pension assets and other economic and actuarial assumptions which, if changed, may cause our future earnings and cash flow to fluctuate significantly and affect the affordability of our products and services38% rewritten
  14. 14Our estimates and projections may prove to be inaccurate and certain of our assets may be at risk of future impairment
  15. 15Changes in tax laws and regulations and interpretations or exposure to additional tax liabilities could adversely affect our financial results50% rewritten
  16. 16Our business involves significant risks and uncertainties that may not be covered by indemnity or insurance
  17. 17Environmental regulations, including in relation to climate change, could adversely affect our future earnings as well as the affordability of our products and services
  18. 18We are involved in a number of legal proceedings. We cannot predict the outcome of litigation and other contingencies with certainty

Risks Related to Ownership of our Common Stock

  1. 19There can be no assurance that we will continue to pay or increase our dividend or to repurchase shares of our common stock22% rewritten

Other Lockheed Martin 10-Ks

  • FY2024 10-K risk factors
    23 risks

    U.S. government budget authorization and the F-35 program, which generated 26% of net sales in 2024, dominate risk factors. International sales generated 26% of net sales, introducing distinct geopolitical and regulatory risks. Cyber-attacks from advanced nation-state adversaries threaten critical infrastructure and sensitive data.

    Filed Jan 28, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.