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Aerospace and Defense Product Sales Mix

Aerospace and defense product sales mix measures the share of revenue generated from products rather than services under the issuer's revenue classification.

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. Product mix edged up to 83.5%
  2. Product classification is not a delivery-timing shortcut
  3. Part of the Aerospace & Defense Program Economics
  4. See It in Company Research
  5. Continue Research

Aerospace and defense product sales mix is product sales divided by total sales under the issuer's classification.

Lockheed Martin reported $62.654 billion of product sales in 2025, up from $59.277 billion in 2024.

Product mix edged up to 83.5%

Product sales grew about 5.7%, close to total company sales growth of 5.6%. Product mix therefore moved only slightly, from 83.4% to 83.5%.

The complementary services sales mix declined from 16.6% to 16.5%.

Product classification is not a delivery-timing shortcut

Lockheed recognizes substantially all contracts using percentage-of-completion cost-to-cost accounting, so product sales do not necessarily correspond to discrete physical deliveries in the period.

The mix describes revenue classification, not recurring revenue quality or program margin.

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 MixProduct Sales MixCurrent conceptServices 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 product mix with service mix while respecting percentage-of-completion revenue recognition and issuer-specific classification.

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