Shares in defense contractor Lockheed Martin (LMT -2.45%) declined by as much as 6% in early morning trading Thursday on the news that chief financial officer (CFO) Jay Malave was departing the company to pursue other opportunities.

An interesting departure

Malave has held the title of CFO at two businesses that were part of the former United Technologies (UTC Carrier and UTC Aerospace Systems), the defense company L3Harris Technologies, and, since 2022, Lockheed Martin. So it's hard to think of a more significant opportunity than Lockheed Martin, with a market cap around $110 billion.

Moreover, the timing of the departure, just a few days before the defense contractor releases its first-quarter earnings report on April 22, raises questions.

Where next for Lockheed Martin

On a positive note, the company has appointed a 26-year company veteran, Evan Scott, as CFO effective immediately. Management also moved to dispel fears over any consequence for earnings by saying that it "will reaffirm the company's previously issued 2025 guidance."

However, the company says, this guidance doesn't include the "evolving impacts of tariffs" as well as the recent announcement of the Next Generation Air Dominance project, which aims to replace the company's F-22 with a fighter jet that will allow the U.S. Air Force to maintain combat superiority.

It's only natural that investors will speculate over the reasons for the abrupt departure of a CFO who had been in his position for only three years (as yet, Malave remains on the board of GE Vernova), and that speculation has taken the stock down today.

Image source: Getty Images.

Still, with earnings about to be released on Tuesday, investors and analysts will have plenty of time to question CEO James Taiclet and others about the trajectory of Lockheed's business. The reasons for the departure may have nothing at all to do with operational or administrative matters at the company.