Summary
Lockheed Martin Corporation's (LMT) 2015 10-K filing highlights a year marked by significant strategic actions, including the substantial acquisition of Sikorsky Aircraft Corporation and the planned divestiture of its Information Systems & Global Solutions (IS&GS) business. Financially, the company reported net sales of $46.1 billion, a slight increase from the previous year, driven by growth in the Aeronautics and Mission Systems and Training segments, partly offset by declines in Space Systems and IS&GS. The acquisition of Sikorsky added $9.0 billion in assets and contributed to a nearly 30% increase in total assets to $49.1 billion, while also increasing total debt significantly. Despite these strategic maneuvers, Lockheed Martin maintained strong operating cash flow, enabling continued investment in R&D, capital expenditures, and robust shareholder returns through dividends and share repurchases. The company's backlog stood at a robust $99.6 billion at year-end 2015, providing visibility into future revenue. Key strategic initiatives like the Sikorsky integration and the IS&GS separation are expected to shape the company's future financial performance and business mix. Investors should monitor the execution of these integration and divestiture plans, alongside ongoing government spending dynamics and program performance across Lockheed Martin's core segments.
Financial Highlights
49 data points| Revenue | $40.54B |
| Cost of Revenue | $36.04B |
| Gross Profit | $4.49B |
| R&D Expenses | $817.00M |
| Operating Income | $4.71B |
| Interest Expense | $443.00M |
| Net Income | $3.60B |
| EPS (Basic) | $11.62 |
| EPS (Diluted) | $11.46 |
| Shares Outstanding (Basic) | 310.30M |
| Shares Outstanding (Diluted) | 314.70M |
Key Highlights
- 1Acquisition of Sikorsky Aircraft Corporation for $9.0 billion, significantly expanding the Mission Systems and Training segment and adding substantial assets and debt.
- 2Planned divestiture of the Information Systems & Global Solutions (IS&GS) business segment to Leidos Holdings, Inc., expected to unlock approximately $5.0 billion in value, including a $1.8 billion special cash payment.
- 3Net sales increased slightly to $46.1 billion, driven by strong performance in Aeronautics and contributions from Sikorsky in the latter part of the year.
- 4Backlog grew to $99.6 billion at year-end 2015, including $15.6 billion from Sikorsky, providing a strong base for future revenue.
- 5The company continued its commitment to shareholder returns, increasing its quarterly dividend by 10% and repurchasing $3.1 billion in common stock.
- 6Total assets increased significantly to $49.1 billion, largely due to the Sikorsky acquisition, while total debt also rose substantially to $15.3 billion to fund the acquisition.
- 7Focus on program execution and affordability initiatives across all business segments remains a core strategic priority amidst ongoing U.S. Government funding constraints.