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.

LMT 10-K FY2024 Annual Report — Revenue, Net Income, EPS

Summary

Lockheed Martin Corporation (LMT) reported a strong financial performance for the fiscal year ended December 31, 2024, with net sales reaching $71.0 billion, 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.

Financial Highlights

49 data points

Beta

Revenue

$71.04B

0.1% Gross Margin

Net Income

$5.34B

0.1% Net Margin

EPS (Diluted)

$22.31

Total Assets

$55.62B

Cash & Equivalents

$2.48B

Free Cash Flow

$6.97B

Financial Statements

Beta

Revenue	$71.04B
Cost of Revenue	$64.11B
Gross Profit	$6.93B
R&D Expenses	$1.60B
Operating Income	$7.01B
Net Income	$5.34B
EPS (Basic)	$22.39
EPS (Diluted)	$22.31
Shares Outstanding (Basic)	238.30M
Shares Outstanding (Diluted)	239.20M

Key Highlights

1Net 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.
2The F-35 Lightning II program continues to be a major contributor, accounting for 26% of total consolidated net sales.
3Backlog increased to $176.0 billion at the end of 2024, indicating strong future revenue potential.
4The company completed the acquisition of Terran Orbital Corporation, bolstering its Space segment capabilities.
5Lockheed Martin returned $6.2 billion to shareholders through dividends ($3.1 billion) and share repurchases ($3.7 billion) in 2024.
6Operating profit decreased by 17.6% to $7.0 billion, impacted by significant losses on classified programs, particularly within the Missiles and Fire Control segment.
7The company continues to invest in research and development, focusing on advanced technologies like AI, autonomy, and hypersonics, aligning with its '21st Century Security' vision.

LOCKHEED MARTIN CORP Annual Report, Year Ended Dec 31, 2024

Summary

Financial Highlights

Key Highlights

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