01—Abstract
Summary
Summary of the 10-K filed January 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Lockheed Martin Corporation (LMT) reported a strong financial performance for the fiscal year ended December 31, 2024, with net sales reaching $71.0 billiona, an increase from $67.6 billion in the prior year.
The company's strategic focus on its '21st Century Security' vision, integrating advanced technologies like AI and autonomy across all domains, continues to drive growth and innovation. Despite facing challenges such as supply chain disruptions and inflation, LMT demonstrated resilience. The F-35 program remains a significant revenue driver, and the company saw increased demand for its Missiles and Fire Control products, including PAC-3 and HIMARS.
Strategic investments in digital transformation and talent are also highlighted as key to future success. The company continues to return value to shareholders through dividends and share repurchases, reflecting a commitment to both operational excellence and shareholder returns.
02—Key points
Key Highlights
- Net sales increased by 5% to $71.0 billion in 2024, driven by growth across multiple business segments, particularly Missiles and Fire Control and Rotary and Mission Systems.
- The F-35 Lightning II program continues to be a major contributor, accounting for 26% of total consolidated net sales.
- Backlog increased to $176.0 billion at the end of 2024, indicating strong future revenue potential.
- The company completed the acquisition of Terran Orbital Corporation, bolstering its Space segment capabilities.
- Lockheed Martin returned $6.2 billion to shareholders through dividends ($3.1 billion) and share repurchases ($3.7 billion) in 2024.
- Operating profit decreased by 17.6% to $7.0 billion, impacted by significant losses on classified programs, particularly within the Missiles and Fire Control segment.
- The company continues to invest in research and development, focusing on advanced technologies like AI, autonomy, and hypersonics, aligning with its '21st Century Security' vision.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Lockheed Martin kept $0.08.
- Revenue$71.04B100.0%
- Cost of revenue−$64.11B90.2%
- Gross profit$6.93B9.8%
- Operating costs$83.0M0.1%
- Operating income$7.01B9.9%
- Interest, other & tax−$1.68B2.4%
- Net income$5.34B7.5%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed January 28, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $71.04B$67.57B | +5.1% |
| Cost of Revenue | $64.11B$59.09B | +8.5% |
| Gross Profit | $6.93B$8.48B | −18.3% |
| R&D Expenses | $1.60B$1.50B | +6.7% |
| Operating Income | $7.01B$8.51B | −17.6% |
| Net Income | $5.34B$6.92B | −22.9% |
| EPS (Basic) | $22.39$27.65 | −19.0% |
| EPS (Diluted) | $22.31$27.55 | −19.0% |
| Shares Outstanding (Basic) | 238.30M250.30M | −4.8% |
| Shares Outstanding (Diluted) | 239.20M251.20M | −4.8% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Lockheed Martin's revenue growth in 2024?
Revenue growth was primarily driven by higher product sales in the Missiles and Fire Control segment, including ramp-ups in GMLRS, HIMARS, JASSM, and LRASM programs. The Rotary and Mission Systems segment also saw increased sales due to higher volumes in radar programs and the CH-53K helicopter program. The Aeronautics segment benefited from higher volume on F-35 sustainment, production, and development contracts.
How did classified program losses impact the company's financial results?
Significant losses on classified programs negatively impacted the company's operating profit. Specifically, the Missiles and Fire Control segment reported $1.4 billion in losses on a classified program, contributing to a substantial decrease in its operating profit. The Aeronautics segment also recognized $555 million in losses on a classified contract.
What is the outlook for the F-35 program?
The F-35 program continues to be a cornerstone of Lockheed Martin's business, with strong international demand. The company delivered 106 TR-3 configured aircraft in 2024 and has a significant backlog for the program, with plans for continued production and sustainment for many years to come. International interest remains high, with several countries signing agreements to procure the aircraft.
How is Lockheed Martin addressing supply chain challenges and inflation?
Lockheed Martin is actively working to mitigate supply chain challenges through long-term contracts, identifying alternative sources, and collaborating with customers and suppliers. To address inflation, the company is focused on optimizing its supply chain, improving operational efficiencies, and working to offset cost increases through cost competitiveness and affordability initiatives.
06—Continue