Lockheed Martin 2nd Quarter 2025 Conference Call

Lockheed Martin 2nd Quarter 2025 Conference Call

• 1. 1 2nd Quarter 2025 Conference Call July 22, 2025 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. ET July 22, 2025 at: www.lockheedmartin.com/investor Audio replay available from 2:00 p.m. ET July 22, 2025 through midnight July 23, 2025 James D. Taiclet Chairman, President and CEO Evan Scott Chief Financial Officer Maria Ricciardone Vice President, Treasurer & Investor Relations

• 2. 2 This presentation contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as: the company's reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company's ability to negotiate favorable contract terms; budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling and the potential for government shutdowns, and changing funding and acquisition priorities; risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program; planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment and rare earth metals; the timing of contract awards or contract definitization, decisions by government customers to impose contract terms following undefinitized contract actions, achievement of performance milestones, customer acceptance of product deliveries, and receipt of customer payments; the company's ability to recover costs under U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts; customer procurement and other policies, laws, regulations and executive actions that affect the company and its industry, programs, future opportunities, and financial performance, including those relating to mission priorities, competing domestic and international spending, contracting terms (such as fixed-price requirements), treatment of contractor performance issues, and contractor access to competitive opportunities; performance and/or financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers; economic, industry, business and political conditions including their effects on governmental policy; the impact of inflation and other cost pressures; government actions that restrict or prevent the sale or delivery of the company's products (such as delays in approvals for exports requiring Congressional notification); foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences, and other trade restrictions; the company's success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales; changes in non-U.S. national priorities and government budgets and planned orders, including potential effects from fluctuations in currency exchange rates; the competitive environment for the company's products and services; the company's ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities; the company's ability to benefit fully from or adequately protect its intellectual property rights; the company's ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions; cyber or other security threats or other disruptions faced by the company or its suppliers; the company's ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions; the accuracy of the company's estimates and projections; changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension risk transfers and associated settlement charges; realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market; the company's efforts to increase the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives; the risk of an impairment of the company's assets, including the potential impairment of goodwill and intangibles; the availability and adequacy of the company's insurance and indemnities; compliance with laws, regulations, policies, and customer requirements relating to environmental matters; the impact of public health crises, natural disasters and other severe weather conditions on the company's business and financial results, including supply chain disruptions and delays, employee absences, and program delays; changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; and the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, administrative reviews, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems. These are only some of the factors that may affect the forward-looking statements contained in this presentation. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forwardlooking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the company’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov. The company’s actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this presentation speak only as of the date of its issuance. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this presentation to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this presentation are intended to be subject to the safe harbor protection provided by the federal securities laws. Forward-Looking Statements

• 3. 3 2Q25: Positioning Lockheed Martin for the Future Financial Results Impacted by Necessary Actions to Focus on Growth Inflection Lockheed Martin Products are Once Again Proven in Theater F-35, F-22, PAC-3, THAAD, AEGIS Support in the Middle East Strong Demand Signal from the Administration and Budget Activities Golden Dome, Munitions, CH-53K F-35 Evolution Continues with Block 4 Upgrades Committed to Creating Long-Term Value for Shareholders

• 4. 4 2Q25 Financial Summary 3.1% Segment Operating Margin* $0.6B Segment Operating Profit* $18.2B Sales ($0.2B) Free Cash Flow* 0.7x Book-to-Bill Ratio* $1.46 Earnings Per Share $0.8B of Independent Research & Development and Capital Expenditures $0.8B in Dividends $0.5B of Share Repurchases Returns to Shareholders *See Chart 12 for Definitions of Non-GAAP Measures and Other Performance Metrics

• 5. 5 Aeronautics Operating Profit: Decreased 113% Due to lower profit booking rate adjustments, primarily due to the $950M loss recognized on a classified program 2024 2025 Sales 2024 2025 Operating Profit* $751 ($98) 10.3% $7,277 Sales: Increased 2% Higher volume on F-35 production contracts, partially offset by lower volume at SkunkWorks® due to the loss recognized on a classified program (1.3%) *See Chart 12 for Definitions of Non-GAAP Measures; Chart 16 for Acronyms 2nd Quarter ($M) F-35 $7,420

• 6. 6 Missiles & Fire Control Operating Profit: Increased 6% Higher volume and favorable mix, partially offset by lower profit booking rate adjustments on PAC-3 2024 2025 Sales 2024 2025 Operating Profit* $450 $479 14.5% $3,102 $3,433 Sales: Increased 11% Higher volume on multiple TSM programs, including JASSM/LRASM, HIMARS and PrSM 14.0% *See Chart 12 for Definitions of Non-GAAP Measures; Chart 16 for Acronyms 2nd Quarter ($M) THAAD

• 7. 7 Rotary & Mission Systems Operating Profit: Decreased 135% Due to lower profit booking rate adjustments, due to the CMHP and TUHP program loss impacts 2024 2025 Sales 2024 2025 Operating Profit* $495 ($172) 10.9% $4,548 $3,995 Sales: Decreased 12% Lower volume at Sikorsky due to the CHMP and TUHP program loss impacts, as well as lower volume at IWSS on the CSC program (4.3%) *See Chart 12 for Definitions of Non-GAAP Measures; Chart 16 for Acronyms 2nd Quarter ($M) LRDR

• 8. 8 Space Operating Profit: Increased 5% Higher profit booking rate adjustments, due to favorable performance at CCS 2024 2025 Sales 2024 2025 Operating Profit* $346 $362 10.8% $3,195 $3,307 Sales: Increased 4% Higher volume at CCS on Orion, and higher volume within SMD on NGI and FBM programs, partially offset by lower volume at NSS on OPIR 10.9% *See Chart 12 for Definitions of Non-GAAP Measures; Chart 16 for Acronyms 2nd Quarter ($M) GPS III

• 9. 9 July Guidance April Guidance ($M), Except for EPS Sales $73,750 - $74,750 $73,750 - $74,750 YoY Growth +4% - +5% +4% - +5% Segment Operating Profit* 8,100 - 8,200 6,600 - 6,700 Total FAS/CAS Pension Adjustment ~1,125 ~1,125 Diluted EPS 27.00 - 27.30 21.70 - 22.00 Cash from Operations 8,500 - 8,700 8,500 - 8,700 Capital Expenditures ~1,900 ~1,900 Free Cash Flow* 6,600 - 6,800 6,600 - 6,800 Share Repurchases ~3,000 ~3,000 2025 Outlook** *See Chart 12 for Definitions of Non-GAAP Measures; Chart 16 for Acronyms **See the company’s second quarter earnings release dated July 22, 2025 for a description of the assumptions on which the 2025 Outlook is based Updated Full Year Guidance for Segment Profit and EPS… Reaffirming Sales and Cash Flow

• 10. 10 Summary Setup to Deliver 2nd Half Results and Full Year Outlook Focused on Operational Excellence to Achieve Customer Commitments Poised to Drive Long-term Growth & Value Creation for Shareholders

• 12. 12 Definitions of Non-GAAP Measures Non-GAAP Financial Measures Disclosure This presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of Lockheed Martin, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. In addition, the company’s definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts. Free Cash Flow (non-GAAP) Free cash flow is cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company's annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and pension contributions. Segment Operating Profit and Margin (non-GAAP) Segment Operating Profit represents operating profit from the company’s business segments before unallocated income and expense. This measure is used by the company’s senior management in evaluating the performance of the company’s business segments and is a performance goal in the company’s annual incentive plan. The table below reconciles Business Segment Operating Profit to Consolidated Operating Profit. Business segment operating margin is calculated by dividing business segment operating profit by sales. Book-to-Bill Ratio The ratio of orders received to sales recorded for a specified period

• 13. 13 Appendix I – Guidance Detail*** 2025 Outlook ($M), Except for EPS Sales $73,750 - $74,750 Segment Operating Profit* $6,600 - $6,700 Segment Margin* 9.0% FAS/CAS Operating Adjustment** ~$1,520 Other, net ~($590) Consolidated Operating Profit $7,530 - 7,630 Net-Operating FAS Pension Income** ~($395) Interest Expense ~($1,100) Effective Tax Rate ~17.8% Diluted EPS $21.70 - 22.00 Pension Contribution $0 Share Repurchases ~$3,000 *See Charts 12 for Definitions of Non-GAAP Measures **See Chart 15 for Pension Detail ***See the company’s second quarter earnings release dated July 22, 2025 for a description of the assumptions on which the 2025 Outlook is based

• 14. 14 Segment Operating Profit* ($M) Sales AERO $28,950 – 29,350 $2,000 – 2,040 MFC $14,050 – 14,350 $1,955 – 1,985 RMS $17,800 – 18,000 $1,335 – 1,355 SPACE $12,950 – 13,050 $1,310 – 1,320 LM Total $73,750 – 74,750 $6,600 – 6,700 Appendix II – Business Area Guidance** *See Chart 12 for Definitions of Non-GAAP Measures; Chart 16 for Acronyms **See the company’s second quarter earnings release dated July 22, 2025 for a description of the assumptions on which the 2025 Outlook is based

• 15. 15 Appendix III - Pension *See Chart 17 for Acronyms

• 16. 16 Appendix IV Acronyms GAAP – Generally Accepted Accounting Principles IWSS – Integrated Warfare Systems & Sensors C6ISR – Command, Control, Communications, Computers, Cyber, Combat Systems, Intelligence, Surveillance & Reconnaissance EPS – Earnings per Share FAS – Financial Accounting Standards CAS – Cost Accounting Standards TSM – Tactical & Strike Missiles SMD – Strategic Missile Defense IAMD – Integrated Air & Missile Defense NSS – National Security Space GMLRS – Guided Multiple Launch Rocket System FBM – Fleet Ballistic Missile HIMARS – High Mobility Artillery Rocket System NGI – Next Generation Interceptor JASSM – Joint Air-to-Surface Standoff Missile GPS – Global Positioning Satellite LRASM – Long Range Anti-Ship Missile OPIR – Overhead Persistent Infrared PAC-3 – Patriot Advanced Capability 3 ULA – United Launch Alliance THAAD – Terminal High Altitude Area Defense SRM – Solid Rocket Motor CSC - Canadian Surface Combatant CAGR – Compound Annual Growth Rate CCS – Commercial Civil Space LRHW – Long Range Hypersonic Weapon CRH – Combat Rescue Helicopter PrSM – Precision Strike Missile TUHP – Turkish Utility Helicopter Program CMHP – Canadian Maritime Helicopter Program