Financial research concept

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. 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 24-month conversion measures the cumulative share of ending backlog that management expects to recognize as revenue over the next 24 months.

Lockheed Martin expected to recognize approximately 60% of its December 31, 2025 backlog over the following 24 months.

Why it matters

The two-year conversion estimate shows how much backlog sits inside a medium-term revenue window versus later periods.

Comparing 12-month and 24-month conversion can also reveal how much contracted work is weighted toward the second year and beyond.

Investor caution

This is management's expected timing at a point in time. Changes in program schedules, funding, customer actions, and estimated consideration can alter the path.

Source:

Treat cumulative backlog conversion as a timing framework, not a fixed revenue schedule.

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.

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