Common-Size Income Statement
Quarterly Data
Lockheed Martin Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-06-28), 10-Q (reporting date: 2026-03-29), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-28), 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-24), 10-Q (reporting date: 2023-06-25), 10-Q (reporting date: 2023-03-26), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-25), 10-Q (reporting date: 2022-06-26), 10-Q (reporting date: 2022-03-27), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-26), 10-Q (reporting date: 2021-06-27), 10-Q (reporting date: 2021-03-28).
The common-size income statement reveals a relatively stable revenue mix coupled with periodic volatility in operating costs and net margins over the analyzed period. While the core business structure remains consistent, significant margin compressions occur in the latter half of 2024 and the first half of 2025, followed by a recovery in 2026.
- Revenue Composition
- The revenue stream is consistently dominated by product sales, which typically fluctuate between 82% and 85% of total sales. Services contribute the remaining 15% to 18%. This distribution remains largely stable across the multi-year period, suggesting a consistent business model with minimal shifts in the strategic weight of products versus services.
- Operating Costs and Gross Profitability
- Operating costs generally range between 85% and 88% of sales, maintaining a gross profit margin typically between 11% and 14%. However, a notable divergence occurs during the quarter ending December 31, 2024, and the quarter ending June 25, 2025, where operating costs spike to 96.29% and 95.96% respectively. These spikes result in gross profit margins dropping sharply to 3.71% and 4.04%, indicating temporary but severe cost pressures or one-time operational charges.
- Non-Operating Items and Interest Trends
- Interest expense as a percentage of sales shows a clear upward trend, rising from approximately 0.8% to 0.9% in 2021 to a range of 1.3% to 1.5% between 2023 and 2026. Non-service FAS pension income and expenses exhibit high volatility, with substantial negative impacts observed in September 2021 (-9.81%) and June 2022 (-8.62%), which caused significant temporary reductions in earnings before income taxes.
- Net Earnings Performance
- Net earnings margins typically oscillate between 9% and 11.5%. The volatility observed in operating costs directly correlates with net earnings dips, reaching lows of 2.83% in December 2024 and 1.88% in June 2025. Following these troughs, a recovery is evident throughout 2026, with net margins returning to a stable range of 8.26% to 9.15%, demonstrating a capacity to revert to historical profitability levels after periods of instability.
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