01—Abstract
Summary
Summary of the 10-K filed January 23, 2024. Cited figures are marked; the original filing is the authoritative source.
Lockheed Martin Corporation reported solid performance in its 2023 10-K filing, highlighting robust net sales of $67.6 billiona, driven by growth across its segments, particularly in Space and Aeronautics.
The company's strategy is centered around its '21st Century Security' vision, focusing on advanced technology integration, current programs of record, classified programs, hypersonics, and new awards. Despite global supply chain challenges and inflationary pressures, Lockheed Martin demonstrated resilience, with a significant backlog of $160.6 billionb providing visibility into future revenues. Financially, the company reported net earnings of $6.9 billion, or $27.55 per diluted share.
Management emphasized ongoing efforts to enhance operational efficiency through digital transformation and strategic portfolio management, including potential acquisitions and divestitures. The company also demonstrated a commitment to shareholder returns through dividends and share repurchases, with a substantial remaining authorization for future repurchases. Key areas of investment and focus include classified programs, hypersonics development, and modernization of existing platforms like the F-35, which continues to be a major revenue driver.
The company operates in a highly competitive landscape, heavily reliant on U.S. government contracts, which constituted 73%c of net sales in 2023. Navigating government budget cycles, evolving security threats, and geopolitical complexities remain critical considerations. Lockheed Martin's robust backlog and strategic focus on advanced defense technologies position it to capitalize on evolving global security needs.
02—Key points
Key Highlights
- Lockheed Martin generated net sales of $67.6 billion in 2023, with 73% derived from U.S. Government contracts.
- The company reported a net earnings of $6.9 billion, or $27.55 per diluted share.
- Backlog stood at a strong $160.6 billion at the end of 2023, providing significant revenue visibility.
- The F-35 program remains a cornerstone, accounting for 26% of total net sales in 2023.
- The Space segment saw significant growth, driven by the Next Generation Interceptor (NGI) program and the Fleet Ballistic Missile (FBM) program.
- The company returned significant capital to shareholders through dividends ($3.1 billion) and share repurchases ($6.0 billion) in 2023.
- Strategic priorities include growth in classified programs, hypersonics, and modernization of key platforms, aligned with the '21st Century Security' vision.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Lockheed Martin kept $0.10.
- Revenue$67.57B100.0%
- Cost of revenue−$59.09B87.5%
- Gross profit$8.48B12.5%
- Operating costs$28.0M0.0%
- Operating income$8.51B12.6%
- Interest, other & tax−$1.59B2.3%
- Net income$6.92B10.2%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed January 23, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $67.57B$65.98B | +2.4% |
| Cost of Revenue | $59.09B$57.70B | +2.4% |
| Gross Profit | $8.48B$8.29B | +2.3% |
| R&D Expenses | $1.50B$1.70B | −11.8% |
| Operating Income | $8.51B$8.35B | +1.9% |
| Interest Expense | $916.00M$623.00M | +47.0% |
| Net Income | $6.92B$5.73B | +20.7% |
| EPS (Basic) | $27.65$21.74 | +27.2% |
| EPS (Diluted) | $27.55$21.66 | +27.2% |
| Shares Outstanding (Basic) | 250.30M263.70M | −5.1% |
| Shares Outstanding (Diluted) | 251.20M264.60M | −5.1% |
05—Questions
Frequently Asked Questions
What were Lockheed Martin's key financial results for the fiscal year 2023?
Lockheed Martin reported net sales of $67.6 billion and net earnings of $6.9 billion, or $27.55 per diluted share for the fiscal year 2023. The company maintained a significant backlog of $160.6 billion, indicating strong future revenue prospects.
How does the company manage supply chain and inflationary pressures?
The company acknowledges persistent supply chain disruptions and inflationary pressures, which have impacted performance and increased costs. Lockheed Martin is actively working with suppliers and managing its supply chain to mitigate these effects, though many challenges are industry-wide or geopolitical in nature. Inflation has put pressure on margins, particularly for fixed-price contracts.
What is the significance of the '21st Century Security' strategy?
The '21st Century Security' strategy is Lockheed Martin's overarching vision guiding its investments and strategy. It focuses on integrating advanced networking and leading-edge technologies across all domains to enhance the agility, adaptability, and unpredictability of defense forces. Key growth areas include current programs of record, classified programs, hypersonics, and new awards.
What is the company's approach to returning capital to shareholders?
Lockheed Martin is committed to returning capital to shareholders through dividends and share repurchases. In 2023, the company paid dividends totaling $3.1 billion and repurchased $6.0 billion of its common stock. A substantial share repurchase authorization remains, indicating continued commitment to shareholder value.
06—Continue