Summary
Lockheed Martin Corporation (LMT) reported solid performance for the fiscal year ending December 31, 2021, with net sales reaching $67.04 billion. The company's financial health remains robust, supported by its significant backlog of $135.36 billion. A substantial portion of the company's revenue, 71%, is derived from the U.S. Government, with 62% specifically from the Department of Defense, highlighting its critical role in national security. International sales accounted for 28% of revenue, indicating a diversified customer base. The company's operations are structured across four key segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. Aeronautics remains the largest segment, driven by its significant contribution from the F-35 program. While the company navigates an environment of global security complexities and economic pressures, its strategic focus on program execution, affordability, and technological innovation positions it well for sustained growth. The company also actively manages its capital, including returning value to shareholders through dividends and share repurchases, while addressing its pension obligations.
Financial Highlights
52 data points| Revenue | $67.04B |
| Cost of Revenue | $57.98B |
| Gross Profit | $9.06B |
| R&D Expenses | $1.50B |
| Operating Income | $9.12B |
| Interest Expense | $569.00M |
| Net Income | $6.32B |
| EPS (Basic) | $22.85 |
| EPS (Diluted) | $22.76 |
| Shares Outstanding (Basic) | 276.40M |
| Shares Outstanding (Diluted) | 277.40M |
Key Highlights
- 1Lockheed Martin generated $67.04 billion in net sales for the fiscal year ended December 31, 2021, a 3% increase from the prior year.
- 2The company's backlog stood at $135.36 billion as of December 31, 2021, providing strong visibility into future revenue.
- 3U.S. Government contracts, primarily with the Department of Defense, accounted for 71% of total net sales, underscoring the company's reliance on government spending.
- 4The Aeronautics segment, driven by the F-35 program, was the largest contributor to net sales, accounting for 40% of the total.
- 5Net earnings from continuing operations were $6.315 billion, or $22.76 per diluted share.
- 6The company repurchased shares totaling $4.1 billion in 2021 and paid $2.9 billion in dividends, demonstrating a commitment to returning capital to shareholders.
- 7An ongoing review by the FTC regarding the proposed acquisition of Aerojet Rocketdyne Holdings, Inc. poses a potential regulatory challenge, with the FTC likely to sue to block the transaction.