Derco Aerospace

What Derco Aerospace does

Derco Aerospace, a wholly-owned subsidiary of Lockheed Martin Corporation headquartered in Milwaukee, Wisconsin, provides integrated aerospace sustainment services for fixed-wing military and commercial fleets, with a particular concentration on the C-130 Hercules platform. Founded in 1979 and operating for over 45 years, the company delivers four interconnected service lines: spares distribution (leveraging 1,500+ qualified suppliers and OEM-certified parts with same-day AOG response), repair and overhaul (ISO 9001, AS9110, FAA Part 145, and EASA Part 145 certified with Accessory Class I/II/III ratings and authorized F-16 and C-130 Hologram repair status), logistics solutions (cost-per-flight-hour material management, rotable pooling, lifecycle support), and technical solutions (capability development across hydraulics, pneumatics, fuels, mechanical, electro-mechanical, landing gear, and wheels & tires systems).

The business model is anchored in long-cycle B2B and government contracts. Revenue is generated through parts distribution agreements (notably a three-year Collins Aerospace arrangement for C-130 wheels and brakes covering 70+ countries), Performance-Based Logistics contracts with the U.S. Defense Logistics Agency (including the $209.2 million C-130 weapon system supplies ceiling running through 2030 and the C-130 Aviation Consumables ACPBL outcome-based program), certified component repair services, and OEM distribution partnerships. Supporting technology consists of an ERP-integrated web-based portal providing real-time inventory tracking and customer analytics, with documented operational performance of 97% on-time delivery, 99.5% material availability, and 99.5% order accuracy.

Derco serves military operators, U.S. and allied government agencies, commercial operators, and OEMs across 65+ countries. Primary customers include the U.S. Defense Logistics Agency, U.S. Air Force, U.S. Navy, and international C-130 operators. The company distributes through OEM partnerships (Collins Aerospace channel), direct government contracting (DLA), and a dedicated customer care center with field service engineers, positioning it within the broader Lockheed Martin defense sustainment ecosystem.

Name

Derco Aerospace

Legal name

Derco, A Lockheed Martin Company

Website

https://dercoaerospace.com

Company type

Private

Founded year

1979

Operating status

Operating

Headcount range

251–500 employees

Short description

Derco Aerospace is a wholly-owned Lockheed Martin subsidiary providing spares distribution, certified repair and overhaul, and performance-based logistics services primarily for the C-130 Hercules platform, serving U.S. military, allied governments, international operators, and OEMs across 65+ countries.

Ownership category

akta.pro rank

Product category

Aerospace Logistics & Sustainment Services

NAICS

Other Aircraft Parts and Auxiliary Equipment Manufacturing (336413), Aerospace Product and Parts Manufacturing (33641)

SIC

Aircraft Parts & Auxiliary Equipment, Nec (3728)

akta.pro primary industry

Parts Distribution & Spares Management (Aftermarket) (IMABALAK)

akta.pro secondary industries

Component MRO (LRU/Rotables, Hydraulics, Pneumatics) (IMABALAD), Avionics & Electronics Repair (Bench Repair) (IMABALAE)

Keywords

• Aerospace logistics services
• Military aircraft sustainment
• Spares distribution
• Repair and overhaul
• Fleet management solutions

Headquarters

HQ city

Milwaukee

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Supply Chain, Operations, Infrastructure, Technology or R&D

Revenue model

1. Parts Distribution Agreements: Three-year parts distribution agreements with Collins Aerospace for C-130 Hercules wheels and brakes supporting international operators. Revenue generated through sale and distribution of OEM-certified aerospace parts.
2. C-130 Aviation Consumables PBL Contract: Performance Based Logistics (ACPBL) contract awarded by U.S. Defense Logistics Agency for C-130 aviation consumables. Provides demand forecasting, inventory management, warehousing, engineering support, and field service representation.
3. C-130 Weapon System Supplies: Maximum $209.2 million contract for C-130 weapon system supplies serving the Air Force, Navy, and other federal agencies through 2030.
4. Repair & Overhaul Services: Certified repair and overhaul services for aerospace components including hydraulics, pneumatics, fuels, mechanical, electro-mechanical, landing gear and wheels & tires. Revenue generated through service fees for component maintenance.

Go-to-market motion2 records

Distribution channels3 records

Marketing channels3 records

Core offering

Derco Aerospace, a wholly-owned subsidiary of Lockheed Martin, provides integrated aerospace sustainment solutions through four interconnected service lines: Spares Distribution (strategic inventory and OEM-certified parts management), Repair & Overhaul (certified MRO for aircraft components including wheels, brakes, hydraulics, pneumatics, and landing gear), Logistics Solutions (life-cycle material management, rotable pooling, and cost-per-flight-hour programs), and Technical Solutions (capability development, ground support equipment, and training) for military and commercial fixed-wing aircraft operators across 65+ countries.

Product overview

Derco Aerospace, a Lockheed Martin Company, provides world-class sustainment solutions for military and commercial aerospace fleets, serving operators, OEMs, and US & allied governments across 65+ countries. The company operates as a unified portfolio of four interconnected service lines: Spares Distribution (strategic inventory and parts management), Repair & Overhaul (certified MRO services for components including wheels, brakes, and avionics), Logistics Solutions (life-cycle material management and rotable pooling programs), and Technical Solutions (capability development and sustainment support for hydraulic, pneumatic, fuel, mechanical, and landing gear systems). These services are delivered through a state-of-the-art facility with 1,500+ qualified suppliers and are certified to ISO 9001, AS9110, FAA Part 145, and EASA standards, with a web-based portal providing real-time data integration.

Differentiator

Problem solved

Functional benefit

Products and services

• Spares Distribution Strategic inventory management and distribution of OEM-certified aircraft parts leveraging a network of 1,500+ qualified suppliers, with same-day quote response, same-day AOG order shipment, export license management, 97% customer on-time delivery, and 99.5% order accuracy; designed for military and commercial fixed-wing aircraft operators.
• Repair & Overhaul Certified component repair and overhaul services for hydraulics, pneumatics, fuels, mechanical, electro-mechanical, landing gear, and wheels & tires, meeting OEM-quality testing specifications; facility certified to ISO 9001, AS9110, FAA Part 145, and EASA standards with Accessory Class I, II, and III ratings, and authorized as a Lockheed Martin F-16 and C-130 Hologram repair facility.
• Logistics Solutions Comprehensive life-cycle material management combining rotable component pooling, training, and cost-per-flight-hour programs to deliver predictable costs and improved fleet availability, supported by a web-based portal providing real-time data integration with Derco's ERP system.
• Technical Solutions Customized capability development and sustainment services across hydraulics, pneumatics, fuels, mechanical, electro-mechanical, landing gear, and wheels & tires systems, including component overhaul, ground support equipment, technical publications, maintenance facilities, test stands, and in-country training for military and commercial operators.

Quantifiable outcome

• 97% customer on-time delivery rate
• +2 more outcomes

Named customers5 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Three partnerships are on record, tiered core and flagship.

• Collins AerospacecoreChannel Partner/ Reseller/ Distributor · 21 January 2026Three-year parts distribution agreement for C-130 Hercules wheels and brakes. Collins Aerospace manufactures the wheels and brakes featuring DURACARB technology at its facility in Troy, Ohio. Derco serves as distribution partner extending Collins' reach to international C-130 operators in 70+ countries.
• U.S. Defense Logistics Agency (DLA)coreStrategic or Co-development Partner · 9 January 2026C-130 Aviation Consumables Performance Based Logistics (ACPBL) contract - the first outcome-based program between DLA and Lockheed Martin. Derco provides demand forecasting, inventory management, warehousing, engineering support, and field service representation for C-130 spare parts and aircraft readiness.
• Lockheed MartinflagshipOEM/ Whitelabel/ Licensing PartnerDerco is a Lockheed Martin Company and subsidiary. Lockheed Martin is the parent company providing strategic direction, brand association, and integration with broader aerospace and defense operations including F-16 and C-130 programs.

Scale indicators7 records

Recent moves3 records

Expansion highlights5 records

Direct peers

• AAR Corp: AAR Corp is a leading independent aerospace aftermarket services company providing parts distribution, MRO, and integrated supply chain solutions across commercial and defense markets. It is the closest publicly-traded analog to Derco given its parallel combination of spares distribution and component repair across government and commercial operators.
• StandardAero: StandardAero is a major independent MRO provider specializing in engine and component repair for military and business aviation fleets. Its mix of platform-specific authorizations and fixed-wing MRO services makes it functionally analogous to Derco's R&O + Technical Solutions service lines.
• AVIALL (a Boeing Company): AVIALL is Boeing's parts distribution subsidiary serving commercial and business aviation operators globally. Like Derco (as part of Lockheed Martin), it extends an OEM's aftermarket reach through a dedicated distribution and logistics operation with comparable scale and certifications.
• AJ Walter Aviation: AJ Walter Aviation is a global aerospace parts distributor and component MRO provider serving commercial and defense operators. Its combined parts-distribution and component-repair business model and emphasis on operator-ready AOG support closely mirrors Derco's Spares Distribution and Repair & Overhaul service lines.
• Triumph Group: Triumph Group provides aerospace structures, components, and aftermarket services including MRO for military and commercial platforms. Its component MRO and integrated aftermarket services position it as a direct comparable to Derco's R&O and Logistics Solutions offerings.

Broad incumbents

• Honeywell Aerospace Technologies: Honeywell Aerospace offers a broad portfolio of avionics, propulsion, and aftermarket services across many platform types. While more diversified than Derco, its aerospace aftermarket and repair operations compete for similar MRO and parts programs on defense platforms.
• GE Aerospace: GE Aerospace is a major propulsion and aftermarket services provider with substantial engine and component MRO operations globally. As a broad incumbent in aerospace sustainment, it overlaps with Derco's broader sustainment footprint across commercial and military platforms.
• ST Engineering Aerospace: ST Engineering Aerospace is a global aerospace MRO and engineering services provider serving both military and commercial operators. While broader in scope, its platform-agnostic MRO and component repair services make it a comparable broad incumbent for sustainment work.

Regional players

• Marshall Aerospace: Marshall Aerospace is a UK-based MRO and modification provider focused on military fixed-wing platforms including C-130. It is directly comparable for C-130 sustainment services but primarily serves European and allied markets rather than U.S. operators.
• Magnetic MRO: Magnetic MRO is a European-based aerospace maintenance, repair, and overhaul provider serving commercial and military operators. Its component MRO and line maintenance services parallel Derco's R&O and Technical Solutions but primarily serve European customers.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xtwitter.com/lockheedmartin
• YouTubeyoutube.com/user/LockheedMartinVideos
• Facebookfacebook.com/lockheedmartin
• LinkedInlinkedin.com/company/derco-aerospace
• Instagraminstagram.com/lockheedmartin

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Derco Aerospace