What drove the increase in net sales for Lockheed Martin in Q1 2021?

Net sales increased primarily due to higher product sales, notably in the Rotary and Mission Systems (RMS) segment, driven by training and logistics solutions and Sikorsky helicopter programs, and in the Missiles and Fire Control (MFC) segment, attributed to integrated air and missile defense and tactical missile programs.

How is Lockheed Martin managing its cash and returning value to shareholders?

Lockheed Martin generated strong operating cash flow of $1.75 billion. The company continued its balanced approach to cash deployment by paying dividends and executing share repurchases, including a $1.0 billion accelerated share repurchase program during the quarter. The total remaining authorization for future repurchases was $2.0 billion as of March 28, 2021.

What is the status of the Aerojet Rocketdyne acquisition?

The acquisition agreement for Aerojet Rocketdyne Holdings, Inc. remains in place, with an expected closing in the latter part of 2021. The transaction is subject to regulatory approvals, including under the Hart-Scott-Rodino Antitrust Improvements Act, and other closing conditions. Lockheed Martin expects to finance the acquisition through a combination of cash on hand and new debt issuances.

How did the COVID-19 pandemic impact Lockheed Martin's Q1 2021 results?

While the COVID-19 pandemic continued to present business challenges, including increased costs and supplier delivery delays, it did not have a significant impact on Lockheed Martin's financial results for the first quarter of 2021. The company is actively managing disruptions and working with customers and suppliers.

LMT 10-Q Quarterly Report Q1 FY2021 — Revenue, Net Income, EPS

Summary

Lockheed Martin Corporation reported solid financial results for the first quarter ended March 28, 2021, with net sales increasing to $16.26 billion from $15.65 billion in the prior year's comparable quarter. Net earnings also saw an increase, reaching $1.84 billion, or $6.56 per diluted share, up from $1.72 billion, or $6.08 per diluted share, in Q1 2020. This growth was driven by increased product sales across multiple segments, particularly Rotary and Mission Systems (RMS) and Missiles and Fire Control (MFC). The company highlighted its strong cash flow generation, providing $1.75 billion in net cash from operating activities. Lockheed Martin continued its commitment to returning capital to shareholders through dividends and share repurchases, including an accelerated share repurchase of $1.0 billion during the quarter. The company also provided an optimistic 2021 financial outlook, expecting net sales to increase in the mid-single digit range and reiterating its commitment to growth through strategic programs and potential acquisitions, such as the pending acquisition of Aerojet Rocketdyne.

Financial Highlights

44 data points

Beta

Revenue

$16.26B

0.1% Gross Margin

Net Income

$1.84B

0.1% Net Margin

EPS (Diluted)

$6.56

Total Assets

$51.44B

Cash & Equivalents

$2.93B

Free Cash Flow

$1.75B

Financial Statements

Beta

Revenue	$16.26B
Cost of Revenue	$14.07B
Gross Profit	$2.19B
Operating Income	$2.18B
Interest Expense	$140.00M
Net Income	$1.84B
EPS (Basic)	$6.58
EPS (Diluted)	$6.56
Shares Outstanding (Basic)	279.00M
Shares Outstanding (Diluted)	280.00M

Key Highlights

1Net sales increased by 3.9% to $16.26 billion compared to $15.65 billion in Q1 2020.
2Net earnings rose to $1.84 billion ($6.56 per diluted share) from $1.72 billion ($6.08 per diluted share) year-over-year.
3Operating profit grew to $2.18 billion from $2.12 billion, reflecting improved performance across key segments.
4Net cash provided by operating activities was $1.75 billion, demonstrating strong cash generation.
5The company repurchased $1.0 billion of its common stock through an accelerated share repurchase program.
6Lockheed Martin reaffirmed its 2021 financial outlook, expecting mid-single digit net sales growth.
7The acquisition of Aerojet Rocketdyne remains on track for closing in late 2021, subject to regulatory approvals.

LOCKHEED MARTIN CORP Quarterly Report for Q1 Ended Mar 28, 2021

Summary

Financial Highlights

Key Highlights

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