Lockheed Martin's backlog stands at $230 billion, nearly $37 billion above the end of 2025 and about 2.8 times the midpoint of its 2026 revenue guidance of $80.75 billion. Almost all of the increase came from the missiles and fire control (MFC) segment, which carries the company's highest profit margin, suggesting improving backlog margins. Growth was driven by mature systems, including a $35 billion THAAD interceptor award in June and a $4.7 billion PAC-3 contract, where the main risk is manufacturing at scale rather than development. A $53.86 billion PAC-3 order placed after the second quarter is not included in the $230 billion figure. The author concludes the backlog is lower-risk and potentially higher-margin than in past years, supporting the investment case.
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