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Aerospace and Defense Backlog 24-Month Conversion

Aerospace and defense backlog 24-month conversion measures the cumulative share of backlog management expects to recognize as revenue over the next two years.

By Lee BaileyPublished Sep 22, 2026
Research context

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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. The two-year window implies roughly $116.2B
  2. About 40% remains beyond the two-year window
  3. Part of the Aerospace & Defense Program Economics
  4. See It in Company Research
  5. Continue Research

Aerospace and defense backlog 24-month conversion is the cumulative share of ending backlog management expects to recognize as revenue over the next 24 months.

Lockheed Martin estimated approximately 60% of its $193.6 billion year-end 2025 backlog.

The two-year window implies roughly $116.2B

Applying the rounded 60% estimate to reported backlog gives about $116.2 billion.

Because 37% is expected inside the first 12 months, roughly another 23% of backlog, about $44.5 billion using rounded inputs, sits in the second-year portion of management's timing framework.

About 40% remains beyond the two-year window

The remaining share is roughly $77.4 billion using the same rounded arithmetic. None of these derived dollar amounts is a fixed delivery schedule.

Read the estimates with total backlog, funding status, and program execution rather than as guaranteed revenue.

Source:

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.

Browse the full operating model in Company Analysis →
Where this concept fits
  • Backlog funding and conversionCurrent relationship
    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.
    Aerospace & Defense Backlog12-Month Backlog Conversion24-Month Backlog ConversionCurrent conceptBacklog Funded MixFunded BacklogUnfunded Backlog
  • 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.
    Cost-Reimbursable Sales MixFixed-Price Sales MixProduct Sales MixServices Sales Mix
  • 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.
    Contract AssetsContract Liabilities

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.

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Compare two-year backlog conversion with the first-year and beyond-two-year portions without turning rounded percentages into a fixed delivery schedule.

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