Financial research concept

Aerospace and Defense Backlog

Aerospace and defense backlog measures firm contracted work that has not yet been recognized as revenue under the issuer's backlog definition.

By Lee BaileyPublished Sep 22, 2026
Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date
Sep 22, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
12 connected conceptsPart of the reviewed Aerospace & Defense Program Economics; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. Why it matters
  2. Investor caution
  3. Part of the Aerospace & Defense Program Economics
  4. See It in Company Research
  5. Continue Research

Aerospace and defense backlog measures firm contracted work that has not yet been recognized as revenue under the issuer's backlog definition.

Lockheed Martin reported $193.6 billion of backlog at December 31, 2025. Its backlog includes both funded and unfunded firm orders, but excludes unexercised options and potential orders under indefinite-delivery, indefinite-quantity agreements.

Why it matters

Backlog connects current contract awards to future sales. A growing backlog can support future revenue visibility, but the timing and profitability of conversion still depend on program execution.

Investor caution

Backlog is not cash, revenue, or a guaranteed profit pool. Definitions can differ materially across contractors, especially around options, IDIQ vehicles, estimated consideration, cancellations, and funding status.

Source:

Use the issuer's own definition before comparing backlog across aerospace and defense companies.

Part of the Aerospace & Defense Program Economics

Connect backlog funding and conversion, contract and delivery mix, and long-cycle contract balances to understand aerospace and defense program economics.

How the model fits together
  • Backlog funding and conversion: Total backlog combines funded and unfunded firm orders under the issuer-specific backlog definition. Funded mix separates appropriated work from backlog still dependent on future funding, while 12-month and 24-month conversion estimates add expected revenue timing without turning backlog into guaranteed sales.
  • Contract and delivery mix: Fixed-price and cost-reimbursable sales mix show how contract risk is allocated, while product and services sales mix show what type of work is being delivered. These issuer-reported or analyst-derived mix views are not standardized peer profitability measures.
  • Contract-balance working capital: Contract assets represent recognized revenue that has not yet been billed, while contract liabilities reflect customer payments ahead of revenue recognition. They describe billing and cash timing on long-cycle work and are not backlog.

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

Continue Research

Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.

Compare stocks

Compare aerospace and defense stocks

Continue into stock comparison for backlog funding and conversion, contract mix, product-versus-service mix, and long-cycle contract balances.

Continue research

Explore more topics in the Financial Research Encyclopedia.