Lockheed Martin Reports First Quarter 2024 Financial Results
-- Net sales of $17.2 billion
-- Net earnings of $1.5 billion, or $6.39 per share
-- Cash from operations of $1.6 billion and free cash flow of $1.3 billion
-- $1.8 billion of cash returned to shareholders through dividends and
share repurchases
-- Reaffirms 2024 financial outlook
BETHESDA, Md., April 23, 2024 /PRNewswire/ -- Lockheed Martin Corporation [NYSE: LMT] today reported first quarter 2024 net sales of $17.2 billion, compared to $15.1 billion in the first quarter of 2023. Net earnings in the first quarter of 2024 were $1.5 billion, or $6.39 per share, compared to $1.7 billion or $6.61 per share, in the first quarter of 2023. Cash from operations was $1.6 billion in both the first quarters of 2024 and 2023. Free cash flow was $1.3 billion in both the first quarters of 2024 and 2023. First quarter 2024 results included 13 weeks compared to 12 weeks for first quarter 2023.
"Our strong start to 2024 demonstrates our continued success designing, developing and delivering 21st Century Security solutions in support of integrated deterrence for customers around the world. These first quarter results reinforce our confidence in our ability to achieve the full year financial expectations we set in January," said Lockheed Martin Chairman, President and CEO Jim Taiclet. "First quarter sales increased significantly year-over-year and we generated robust free cash flow of nearly $1.3 billion, while taking assertive actions to further strengthen production capacity. In addition, we continued our disciplined and dynamic capital deployment by investing over $700 million into R&D and capital projects and returned significant capital to shareholders through dividends and share repurchases as we remain committed to delivering meaningful free cash flow per share growth over the long-term.
"Our $159 billion backlog includes several large National Security Space awards in the quarter and attests to the breadth of our portfolio, depth of our technical expertise, and understanding of our customers' needs. These capabilities uniquely position us to lead the realization of joint all domain operations, including reliable battle management and command and control systems integrated across multiple domains, military services, and allied forces. We remain exceptionally focused on the execution of the F-35 program, working with our customers and suppliers to implement TR-3 capabilities, and are encouraged by the progress towards delivery of the first TR-3 configured aircraft. The innovation and open architecture solutions across our portfolio enable customers worldwide to stay prepared and agile amidst an ever-changing threat environment."
Adjusted earnings before income taxes, net earnings and diluted EPS
The table below shows the impact to earnings before income taxes, net earnings and diluted earnings per share (EPS) for certain non-operational items:
(in millions, except per share
data)
Quarters Ended
March 31,
March 26,
2024 2023
Earnings Net Diluted Earnings Net Diluted
Before Earnings EPS Before Earnings EPS
Income Income
Taxes Taxes
As Reported (GAAP) $1,835 $1,545 $6.39 $1,994 $1,689 $6.61
Mark-to-market investment
gains(1) (18) (14) (0.06) (58) (44) (0.18)
As Adjusted (Non-GAAP)(2) $1,817 $1,531 $6.33 $1,936 $1,645 $6.43
1 Includes changes in valuations of the company's net assets and liabilities for deferred compensation
plans and early-stage company
investments.
2
See the "Use of Non-GAAP Financial Measures" section of this news release for more information.
Summary Financial Results
The following table presents the company's summary financial results.
(in millions, except per share data)
Quarters Ended
March 31, March 26,
2024 2023
Net sales $17,195 $15,126
Business segment operating profit(1) $1,745 $1,682
Unallocated items
FAS/CAS operating adjustment 406 415
Intangible asset amortization expense (61) (62)
Other, net (61) 2
Total unallocated items 284 355
Consolidated operating profit $2,029 $2,037
Net earnings $1,545 $1,689
Diluted earnings per share $6.39 $6.61
Cash from operations(2) $1,635 $1,564
Capital expenditures (378) (294)
Free cash flow1,2 $1,257 $1,270
1 Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP
Financial Measures" section of
this news release for more information.
2 See the "Cash Flows and Capital Deployment Activities" section of this news release for more information.
2024 Financial Outlook
The following table and other sections of this news release contain forward-looking statements, which are based on the company's current expectations. Actual results may differ materially from those projected. It is the company's practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, pension risk transfer transactions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. For additional factors that may impact the company's actual results, refer to the "Forward-Looking Statements" section in this news release.
(in millions, except per share data) 2024
Outlook(1)
Net sales
$68,500 - $70,000
Business segment operating profit(2)
$7,175- $7,375
Total FAS/CAS pension adjustment(3)
~$1,685
Diluted earnings per share4
$25.65 - $26.35
Cash from operations
$7,750 - $8,050
Capital expenditures
~$1,750
Free cash flow(2)
$6,000 - $6,300
1 The company's current 2024 financial outlook does not include any future gains or losses related to changes in
valuations of the company's
net assets and liabilities for deferred compensation plans or early-stage company investments. The company's
financial outlook reflects no
significant reduction in customer budgets or changes in priorities, continued support and funding of the
company's programs, and a statutory
tax rate of 21%. In addition, the outlook includes known impacts from inflationary pressures and labor and supply
chain challenges at the time
of this news release and experienced to date.
2 Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial
Measures" section of
this news release for more information.
3 The total FAS/CAS pension adjustment is presented as a single amount and includes total expected U.S. Government
cost accounting
standards (CAS) pension cost of approximately $1.7 billion. Total expected financial accounting standards (FAS)
pension income is not
significant. For additional detail regarding the pension amounts reported in operating and non-operating
results, refer to the supplemental table
included at the end of this news release.
4 Although the company typically does not update its outlook for proposed changes in law, the above includes the
effect of Notice 2023-63
confirming that certain expenditures incurred in the performance of cost-type contracts are not subject to
capitalization. The company believes
incorporating the clarification from the Notice more accurately reflects its expectations because the Notice
describes the tax treatment of
certain expenditures in accordance with the company's analysis of the Internal Revenue Code.
Cash Flows and Capital Deployment Activities
Cash from operations in the first quarter of 2024 was $1.6 billion and capital expenditures were $378 million, resulting in free cash flow of $1.3 billion. The operating and free cash flows for the first quarter of 2024 were comparable to the same period in 2023.
The company's cash activities in the quarter ended March 31, 2024, included the following:
-- paying cash dividends of $780 million;
-- paying $1.0 billion to repurchase 2.3 million shares; and
-- receiving net proceeds of $2 billion from a debt issuance of senior
unsecured notes, consisting of $650 million aggregate principal amount
of 4.50% Notes due 2029, $600 million aggregate principal amount of
4.80% Notes due 2034 and $750 million aggregate principal amount of
5.20% Notes due 2064.
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company's business segments and reconciles these amounts to the company's consolidated financial results.
(in millions) Quarters Ended
March 31, March 26,
2024 2023
Net sales
Aeronautics $6,845 $6,269
Missiles and Fire
Control 2,993 2,388
Rotary and
Mission Systems 4,088 3,510
Space 3,269 2,959
Total net sales $17,195 $15,126
Operating profit
Aeronautics $679 $675
Missiles and Fire
Control 311 377
Rotary and
Mission Systems 430 350
Space 325 280
Total business
segment
operating 1,745 1,682
profit
Unallocated items
FAS/CAS
operating
adjustment 406 415
Intangible asset
amortization (61) (62)
expense
Other, net (61) 2
Total unallocated
items 284 355
Total
consolidated
operating profit $2,029 $2,037
Net sales and operating profit of the company's business segments exclude intersegment sales, cost of sales, and profit as these activities are eliminated in consolidation and not included in management's evaluation of performance of each segment. Business segment operating profit includes the company's share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of the company's business segments.
Business segment operating profit excludes the FAS/CAS pension operating adjustment, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. Government cost accounting standards (CAS) or federal acquisition regulations (FAR), and other items not considered part of management's evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, environmental costs, stock-based compensation expense, retiree benefits, significant severance actions, significant asset impairments, gains or losses from divestitures, intangible asset amortization expense, and other miscellaneous corporate activities. Excluded items are included in the reconciling item "Unallocated items" between operating profit from the company's business segments and its consolidated operating profit.
Changes in net sales and operating profit generally are expressed in terms of volume, contract mix, and/or performance (referred to as profit adjustments). Changes in volume refer to increases or decreases in sales or operating profit resulting from varying production activity levels, deliveries or service levels on individual contracts. Volume changes in segment operating profit are typically based on the current profit booking rate for a particular contract. Contract mix refers to changes in the ratio of contract type or life cycle (e.g., cost-type, fixed-price, development, production and/or sustainment). In addition, comparability of the company's segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on the company's contracts. Increases in profit booking rates, typically referred to as favorable profit adjustments, usually relate to revisions in the estimated total costs to fulfill the performance obligations that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to fulfill the performance obligations and a reduction in the profit booking rate and are typically referred to as unfavorable profit adjustments. Increases or decreases in profit booking rates are recognized in the period they are determined and reflect the inception-to-date effect of such changes.
The company's consolidated net favorable profit booking rate adjustments represented approximately 11% and 25% of total segment operating profit in the quarters ended March 31, 2024 and March 26, 2023. The decrease in the net favorable profit booking rate adjustments was driven by a $100 million reach-forward loss recognized on a classified program at MFC after updating the company's assessment of the likelihood that the options may be exercised and concluded that an option would be exercised based on progress made on the program and discussions with the customer. In addition to this reach-forward loss, net favorable profit booking rate adjustments were lower by $120 million, see the discussion below.
Aeronautics
(in millions) Quarters Ended
March 31, March 26,
2024 2023
Net sales $6,845 $6,269
Operating profit 679 675
Operating margin 9.9 % 10.8 %
Aeronautics' net sales in the first quarter of 2024 increased $576 million, or 9%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $305 million on the F-35 program due to higher volume on production, development and sustainment contracts; $155 million on classified programs driven by higher volume; and $60 million on the F-16 program due to the ramp up on production.
Aeronautics' operating profit in the first quarter of 2024 was comparable to the same period in 2023. Operating profit increased $50 million on the F-16 program as operating profit for the first quarter of 2023 reflects the impact of unfavorable profit adjustments on a production contract and sustainment contracts as a result of schedule delays related to software and technical specification risks that did not recur in the first quarter of 2024. This increase was partially offset by lower operating profit of $30 million on the F-35 program primarily due to lower net profit adjustments on production contracts as a result of higher than anticipated material costs, partially offset by higher volume described above. Total net profit booking rate adjustments were $40 million lower in the first quarter of 2024 compared to the same period in 2023.
Missiles and Fire Control
(in millions) Quarters Ended
March 31, March 26,
2024 2023
Net sales $2,993 $2,388
Operating profit 311 377
Operating margin 10.4 % 15.8 %
MFC's net sales in the first quarter of 2024 increased $605 million, or 25% compared to the same period in 2023. The increase was primarily attributable to higher net sales of $460 million for tactical and strike missile programs due to production ramp up on Guided Multiple Launch Rocket Systems (GMLRS), High Mobility Artillery Rocket System (HIMARS), Joint Air-to-Surface Standoff Missile (JASSM) and Long Range Anti-Ship Missile (LRASM) programs; and $100 million for integrated air and missile defense programs primarily due to higher volume on PAC-3 and Terminal High Altitude Area Defense (THAAD).
MFC's operating profit in the first quarter of 2024 decreased $66 million, or 18%, compared to the same period in 2023. The decrease was primarily attributable to lower operating profit for tactical and strike missile programs due to a $100 million reach-forward loss recognized for an option on a classified program and an unfavorable profit adjustment on HELLFIRE as a result of additional costs expected to be incurred associated with a contract claim, partially offset by the production ramp up described above. Total net profit booking rate adjustments, inclusive of the $100 million loss described above, were $120 million lower in the first quarter of 2024 compared to the same period in 2023.
Rotary and Mission Systems
(in millions) Quarters Ended
March 31, March 26,
2024 2023
Net sales $4,088 $3,510
Operating profit 430 350
Operating margin 10.5 % 10.0 %
RMS' net sales in the first quarter of 2024 increased $578 million, or 16% compared to the same period in 2023. The increase was primarily attributable to higher net sales of $295 million on integrated warfare systems and sensors (IWSS) programs due to new program ramp up within the laser systems portfolio and higher volume on the Aegis and radar programs; $150 million for various C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance) programs due to higher volume; and $100 million for Sikorsky helicopter programs due to higher volume on Seahawk and CH-53K programs.
RMS' operating profit in the first quarter of 2024 increased $80 million, or 23%, compared to the same period in 2023. The increase was primarily attributable to higher operating profit of $40 million on IWSS programs due to higher volume described above and a favorable profit rate adjustment as a result of the delivery of a ground-based radar which retired the technical risk; and $25 million on Sikorsky helicopter programs due to higher volume described above and higher margins due to contract mix, partially offset by unfavorable profit adjustments on Seahawk programs. Total net profit booking rate adjustments were $30 million lower in the first quarter of 2024 compared to the same period in 2023.
Space
(in millions) Quarters Ended
March 31, March 26,
2024 2023
Net sales $3,269 $2,959
Operating profit 325 280
Operating margin 9.9 % 9.5 %
Space's net sales in the first quarter of 2024 increased $310 million, or 10%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $140 million for strategic and missile defense programs due to higher volume on Fleet Ballistic Missile (FBM) and ramp up in the hypersonic and Next Generation Interceptor (NGI) development programs; and higher net sales of $115 million for national security space programs due to higher volume on Transport Layer and GPS III programs and ramp up on the Tracking Layer program.
Space's operating profit in the first quarter of 2024 increased $45 million, or 16%, compared to the same period in 2023. The increase was primarily attributable to $30 million of higher equity earnings from the company's investment in United Launch Alliance (ULA) due to higher launch volume, and higher operating profit of $20 million on strategic and missile defense programs due to the higher volume described above. These increases were partially offset by lower operating profit of $25 million for national security space programs due to the impact of lower net favorable profit adjustments on Next Gen OPIR as a result of the timing of the award and incentive fee assessments. Total net profit booking rate adjustments were $30 million lower in the first quarter of 2024 compared to the same period in 2023.
Total equity earnings/(losses) (primarily ULA) represented approximately $15 million or 5% in the first quarter of 2024, compared to approximately $(15) million or (5)% for the same period in 2023.
Income Taxes
The company's effective income tax rate was 15.8% and 15.3% for the quarters ended March 31, 2024 and March 26, 2023. The rates for all periods benefited from research and development tax credits, tax deductions for foreign derived intangible income, dividends paid to the company's defined contribution plans with an employee stock ownership plan feature and employee equity awards.
Use of Non-GAAP Financial Measures
This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company's definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.
Business segment operating profit
Business segment operating profit represents operating profit from the company's business segments before unallocated income and expense. This measure is used by the company's senior management in evaluating the performance of its business segments and is a performance goal in the company's annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.
(in millions) 2024
Outlook
Business segment operating profit (non-GAAP)
$7,175 - $7,375
FAS/CAS operating adjustment(1)
~1,625
Intangible asset amortization expense
~(245)
Other, net
~(400)
Consolidated operating profit (GAAP)
~$8,155 - $8,355
1 Reflects the amount by which expected total CAS pension cost of $1.7 billion, exceeds the expected FAS pension
service cost and excludes
expected non-service FAS pension income. Refer to the supplemental table "Selected Financial Data" included in
this news release for a
detail of the FAS/CAS operating adjustment.
Free cash flow
Free cash flow is cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company's annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and pension contributions.
Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS
Earnings before income taxes, net earnings and diluted earnings per share (EPS) were impacted by certain non-operational items for all periods. Management believes the presentation of these measures adjusted for the impacts of these non-operational items is useful to investors in understanding the company's underlying business performance and comparing performance from period to period. The tax effects related to each adjustment that impacted earnings before income taxes are based on a blended tax rate that combines the federal statutory rate of 21% plus an estimated state tax rate.
Webcast and Conference Call Information
Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Tuesday, April 23, 2024, at 11:00 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor. The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor.
For additional information, visit the company's website: www.lockheedmartin.com.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin's current expectations and assumptions. The words "believe," "estimate," "anticipate," "project," "intend," "expect," "plan," "outlook," "scheduled," "forecast" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:
-- the company's reliance on contracts with the U.S. Government, which are
dependent on U.S. Government funding and can be terminated for
convenience, and the company's ability to negotiate favorable contract
terms;
-- budget uncertainty, the risk of future budget cuts, the impact of
continuing resolution funding mechanisms and the debt ceiling and the
potential for government shutdowns and changing funding and acquisition
priorities;
-- risks related to the development, production, sustainment, performance,
schedule, cost and requirements of complex and technologically advanced
programs, including the F-35 program;
-- planned production rates and orders for significant programs, compliance
with stringent performance and reliability standards, and materials
availability, including government furnished equipment;
-- the timing of contract awards or delays in contract definitization as
well as the timing and customer acceptance of product deliveries and
performance milestones;
-- the company's ability to recover costs under U.S. Government contracts
and the mix of fixed-price and cost-reimbursable contracts;
-- customer procurement policies that shift risk to contractors, including
competitively bid programs with fixed-price development work or
follow-on production options or other financial risks; and the impact of
investments, cost overruns or other cost pressures and performance
issues on fixed price contracts;
-- changes in procurement and other regulations and policies affecting the
company's industry, export of its products, cost allowability or
recovery, preferred contract type, and performance and progress payments
policy;
-- performance and financial viability of key suppliers, teammates, joint
ventures (including United Launch Alliance), joint venture partners,
subcontractors and customers;
-- economic, industry, business and political conditions including their
effects on governmental policy;
-- the impact of inflation and other cost pressures;
-- the impact of pandemics and epidemics on the company's business and
financial results, including supply chain disruptions and delays,
employee absences, and program delays;
-- government actions that prevent the sale or delivery of the company's
products (such as delays in approvals for exports requiring
Congressional notification);
-- trade policies or sanctions (including Chinese sanctions on the company
or its suppliers, teammates or partners, U.S. Government sanctions on
Türkish entities and persons, and indirect effects of sanctions on
Russia to the company's supply chain);
-- the company's success expanding into and doing business in adjacent
markets and internationally and the risks posed by international sales;
-- changes in foreign national priorities and foreign government budgets
and planned orders, including potential effects from fluctuations in
currency exchange rates;
-- the competitive environment for the company's products and services,
including competition from startups and non-traditional defense
contractors;
-- the company's ability to develop and commercialize new technologies and
products, including emerging digital and network technologies and
capabilities;
-- the company's ability to benefit fully from or adequately protect its
intellectual property rights;
-- the company's ability to attract and retain a highly skilled workforce,
the impact of work stoppages or other labor disruptions;
-- cyber or other security threats or other disruptions faced by the
company or its suppliers;
-- the company's ability to implement and continue, and the timing and
impact of, capitalization changes such as share repurchases, dividend
payments and financing transactions;
-- the accuracy of the company's estimates and projections;
-- changes in pension plan assumptions and actual returns on pension
assets; cash funding requirements and pension risk transfers and
associated settlement charges;
-- realizing the anticipated benefits of acquisitions or divestitures,
investments, joint ventures, teaming arrangements or internal
reorganizations, and market volatility affecting the fair value of
investments that are marked to market;
-- the company's efforts to increase the efficiency of its operations and
improve the affordability of its products and services, including
through digital transformation and cost reduction initiatives;
-- the risk of an impairment of the company's assets, including the
potential impairment of goodwill and intangibles;
-- the availability and adequacy of the company's insurance and
indemnities;
-- impacts of climate change and compliance with laws, regulations,
policies, and customer requirements in response to climate change
concerns;
-- changes in accounting, U.S. or foreign tax, export or other laws,
regulations, and policies and their interpretation or application, and
changes in the amount or reevaluation of uncertain tax positions; and
-- the outcome of legal proceedings, bid protests, environmental
remediation efforts, audits, government investigations or government
allegations that the company has failed to comply with law, other
contingencies and U.S. Government identification of deficiencies in its
business systems.
These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the company's most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company's filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.
The company's actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its filing. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.
Lockheed Martin Corporation
Consolidated Statements of Earnings1
(unaudited; in millions, except per share data)
Quarters Ended
March 31, March 26,
2024 2023
Net sales $17,195 $15,126
Cost of sales (15,202) (13,080)
Gross profit 1,993 2,046
Other income (expense), net 36 (9)
Operating profit 2,029 2,037
Interest expense (255) (202)
Non-service FAS pension income 16 110
Other non-operating income, net 45 49
Earnings before income taxes 1,835 1,994
Income tax expense (290) (305)
Net earnings $1,545 $1,689
Effective tax rate 15.8 % 15.3 %
Earnings per common share
Basic $6.42 $6.63
Diluted $6.39 $6.61
Weighted average shares outstanding
Basic 240.7 254.7
Diluted 241.6 255.7
Common shares reported in stockholders' 239 254
equity at end of period
1 The company closes its books and records on the last Sunday of the calendar quarter to align its financial
closing with its business processes,
which was on March 31, for the first quarter of 2024 and March 26, for the first quarter of 2023. The
consolidated financial statements and
tables of financial information included herein are labeled based on that convention. This practice only affects
interim periods, as the company's
fiscal year ends on Dec. 31.
Lockheed Martin Corporation
Business Segment Summary Operating Results
(unaudited; in millions)
Quarters Ended
March 31, March 26, %
2024 2023 Change
Net sales
Aeronautics $6,845 $6,269 9 %
Missiles and Fire Control 2,993 2,388 25 %
Rotary and Mission Systems 4,088 3,510 16 %
Space 3,269 2,959 10 %
Total net sales $17,195 $15,126 14 %
Operating profit
Aeronautics $679 $675 1 %
Missiles and Fire Control 311 377 (18 %)
Rotary and Mission Systems 430 350 23 %
Space 325 280 16 %
Total business segment operating 1,745 1,682 4 %
profit
Unallocated items
FAS/CAS operating adjustment 406 415
Intangible asset amortization
expense (61) (62)
Other, net (61) 2
Total unallocated items 284 355 (20 %)
Total consolidated operating $2,029 $2,037 - %
profit
Operating margin
Aeronautics 9.9 % 10.8 %
Missiles and Fire Control 10.4 % 15.8 %
Rotary and Mission Systems 10.5 % 10.0 %
Space 9.9 % 9.5 %
Total business segment operating 10.1 % 11.1 %
margin
Total consolidated operating 11.8 % 13.5 %
margin
Lockheed Martin Corporation
Selected Financial Data
(unaudited; in millions)
2024 2023
Outlook Actual
Total FAS income CAS cost
FAS pension income
$ - $378
Less: CAS pension cost 1,685 1,725
Total FAS/CAS pension adjustment $1,685 $2,103
Service and non-service cost
reconciliation
FAS pension service cost $(60) $(65)
Less: CAS pension cost 1,685 1,725
Total FAS/CAS pension operating
adjustment 1,625 1,660
Non-service FAS pension income 60 443
Total FAS/CAS pension adjustment $1,685 $2,103
Lockheed Martin Corporation
Consolidated Balance Sheets
(unaudited, in millions, except par value)
March 31, Dec. 31,
2024 2023
Assets
Current assets
Cash and cash equivalents $2,790 $1,442
Receivables, net 2,257 2,132
Contract assets 14,050 13,183
Inventories 3,278 3,132
Other current assets 583 632
Total current assets 22,958 20,521
Property, plant and equipment, net 8,354 8,370
Goodwill 10,789 10,799
Intangible assets, net 2,151 2,212
Deferred income taxes 3,024 2,953
Other noncurrent assets 7,687 7,601
Total assets $54,963 $52,456
Liabilities and equity
Current liabilities
Accounts payable $3,523 $2,312
Salaries, benefits and payroll taxes 2,679 3,133
Contract liabilities 8,745 9,190
Current maturities of long-term debt 168 168
Other current liabilities 2,584 2,134
Total current liabilities 17,699 16,937
Long-term debt, net 19,250 17,291
Accrued pension liabilities 6,133 6,162
Other noncurrent liabilities 5,231 5,231
Total liabilities 48,313 45,621
Stockholders' equity
Common stock, $1 par value per share 239 240
Additional paid-in capital
Retained earnings 15,222 15,398
Accumulated other comprehensive loss (8,811) (8,803)
Total stockholders' equity 6,650 6,835
Total liabilities and equity $54,963 $52,456
Lockheed Martin Corporation
Consolidated Statements of Cash Flows
(unaudited; in millions)
Quarters Ended
March 31, March 26,
2024 2023
Operating activities
Net earnings $1,545 $1,689
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization 351 325
Stock-based compensation 61 57
Deferred income taxes (77) (117)
Changes in assets and liabilities
Receivables, net (125) (78)
Contract assets (867) (871)
Inventories (146) (383)
Accounts payable 1,301 1,217
Contract liabilities (445) (152)
Income taxes 341 414
Qualified defined benefit pension plans (1) (94)
Other, net (303) (443)
Net cash provided by operating activities 1,635 1,564
Investing activities
Capital expenditures (378) (294)
Other, net 6 35
Net cash used for investing activities (372) (259)
Financing activities
Issuance of long-term debt, net of related costs 1,980
Repurchases of common stock (1,000) (500)
Dividends paid (780) (784)
Other, net (115) (128)
Net cash provided by (used for) financing activities 85 (1,412)
Net change in cash and cash equivalents 1,348 (107)
Cash and cash equivalents at beginning of period 1,442 2,547
Cash and cash equivalents at end of period $2,790 $2,440
Lockheed Martin Corporation
Other Financial and Operating Information
(unaudited; in millions, except for aircraft
deliveries and weeks)
Backlog March 31, Dec. 31,
2024 2023
Aeronautics $57,035 $60,156
Missiles and Fire
Control 31,297 32,229
Rotary and Mission
Systems 38,030 37,726
Space 33,006 30,456
Total backlog $159,368 $160,567
Quarters Ended
Aircraft Deliveries March 31, March 26,
2024 2023
F-35 5
F-16 3 1
C-130J 4 2
Government helicopter programs 13 10
Commercial helicopter programs 1
International military helicopter
programs
Number of Weeks in Reporting Period
(1) 2024 2023
First quarter 13 12
Second quarter 13 13
Third quarter 13 13
Fourth quarter 13 14
1 Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the
last Sunday of each month,
except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting
quarter may vary slightly during
the year and for comparable prior year periods.
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SOURCE Lockheed Martin
