Summary
Lockheed Martin Corporation (LMT) reported its third-quarter 2021 financial results, showcasing a mixed performance impacted by several significant factors. While total net sales saw a slight decrease year-over-year for the quarter, reaching $16.03 billion, the nine-month period demonstrated growth, with net sales up to $49.32 billion. The company's earnings were significantly affected by a substantial non-cash pension settlement charge of $1.7 billion recognized in the third quarter. This charge, while impacting reported net earnings, is a non-cash item related to a pension risk transfer transaction. Operationally, the company faced supply chain challenges impacting sales in the Aeronautics, Missiles and Fire Control, and Space segments during the third quarter. Despite these headwinds, the Rotary and Mission Systems segment showed resilience. Looking ahead, Lockheed Martin has updated its full-year 2021 outlook, now expecting net sales of approximately $67 billion and maintaining its operating profit margin target. The company continues to focus on strategic investments, shareholder returns through dividends and share repurchases, and managing its long-term liabilities, including its pension obligations.
Financial Highlights
46 data points| Revenue | $16.03B |
| Cost of Revenue | $13.73B |
| Gross Profit | $2.30B |
| Operating Income | $2.29B |
| Interest Expense | $141.00M |
| Net Income | $614.00M |
| EPS (Basic) | $2.22 |
| EPS (Diluted) | $2.21 |
| Shares Outstanding (Basic) | 276.20M |
| Shares Outstanding (Diluted) | 277.30M |
Key Highlights
- 1Total net sales for the third quarter of 2021 were $16.03 billion, a decrease from $16.50 billion in the prior year's quarter.
- 2For the first nine months of 2021, total net sales increased to $49.32 billion from $48.37 billion in the same period of 2020.
- 3Net earnings for the third quarter of 2021 were $614 million, significantly down from $1.70 billion in the third quarter of 2020, largely due to a $1.7 billion non-cash pension settlement charge.
- 4Diluted earnings per share for the quarter were $2.21, compared to $6.05 in the prior year's quarter, impacted by the pension settlement charge.
- 5The company announced an updated 2021 net sales outlook of approximately $67 billion and maintained its total business segment operating profit margin expectation of around 11.0%.
- 6Cash from operations for the first nine months of 2021 was $4.95 billion, a decrease from $6.38 billion in the same period of 2020, impacted by working capital changes and higher tax payments.
- 7Lockheed Martin is proceeding with the acquisition of Aerojet Rocketdyne, with an anticipated closing in the first quarter of 2022, subject to regulatory approval.