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Aerospace and Defense Fixed-Price Sales Mix

Fixed-price sales mix measures the share of aerospace and defense revenue generated under contracts where pricing is substantially fixed while execution costs remain the contractor's responsibility.

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. Fixed-price mix stayed near 60%
  2. Fixed-price mix is a risk lens, not a margin forecast
  3. Part of the Aerospace & Defense Program Economics
  4. See It in Company Research
  5. Continue Research

Aerospace and defense fixed-price sales mix is fixed-price contract sales divided by total sales.

Lockheed Martin reported $45.2 billion of fixed-price sales in 2025, up from $42.7 billion in 2024.

Fixed-price mix stayed near 60%

Fixed-price sales represented about 60.2% of 2025 total sales, almost unchanged from roughly 60.1% in 2024.

The remaining sales were predominantly cost-reimbursable, so the contract-risk mix was unusually stable despite 5.6% total sales growth.

Fixed-price mix is a risk lens, not a margin forecast

Firm fixed-price and fixed-price incentive structures can transfer more cost-overrun risk to the contractor, but economics still depend on program maturity, estimates, incentives, and execution.

A stable mix does not mean program-level risk was stable.

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
  • Contract and delivery mixCurrent relationship
    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 MixCurrent conceptProduct Sales MixServices Sales Mix
  • 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.
    Aerospace & Defense Backlog12-Month Backlog Conversion24-Month Backlog ConversionBacklog Funded MixFunded BacklogUnfunded Backlog
  • 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 fixed-price mix across periods while preserving differences among firm fixed-price, incentive, program maturity, and execution risk.

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