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Aerospace and Defense Backlog Funded Mix

Backlog funded mix measures the share of aerospace and defense backlog supported by authorized and appropriated customer funding.

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. Funding composition improved by about 84 basis points
  2. The ratio says nothing about conversion speed or margin
  3. Part of the Aerospace & Defense Program Economics
  4. See It in Company Research
  5. Continue Research

Aerospace and defense backlog funded mix is funded backlog divided by total backlog.

For Lockheed Martin, the reconstructed ratio increased from about 61.3% in 2024 to 62.1% in 2025.

Funding composition improved by about 84 basis points

The 2025 calculation is $120.2 billion divided by $193.6 billion. The 2024 calculation is $107.8 billion divided by $176.0 billion.

The small mix shift occurred because funded backlog grew faster than total backlog.

The ratio says nothing about conversion speed or margin

Funded mix is an analytical ratio built from issuer-reported balances. It does not tell investors when work will become sales, whether a program is profitable, or how much cash will be collected in a given period.

It also inherits Lockheed's issuer-specific backlog definition.

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 ConversionBacklog Funded MixCurrent conceptFunded 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 aerospace and defense stocks

Compare funded backlog share only after aligning issuer backlog definitions and keep funding composition separate from conversion speed and margin.

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