Summary
Lockheed Martin Corporation (LMT) reported a modest increase in net sales for the first quarter of 2023, reaching $15.1 billion, a 1% rise compared to the prior year's quarter. This growth was primarily driven by stronger performance in the Space segment, boosted by classified programs and the Next Generation Interceptor, alongside increased service sales in Aeronautics. Despite the revenue uptick, net earnings saw a slight decrease to $1.7 billion from $1.73 billion in the same period last year. Diluted earnings per share were $6.61, up from $6.44 in Q1 2022, benefiting from a reduction in outstanding shares due to ongoing share repurchases. The company's operational results were influenced by segment-specific dynamics, with Aeronautics and Missiles and Fire Control experiencing slight sales declines, while Rotary and Mission Systems remained relatively flat. Management highlighted the ongoing geopolitical environment as a factor influencing demand, noting increased interest in certain products. The company also continued its commitment to returning capital to shareholders, with significant share repurchases and dividend payments. Looking ahead, LMT faces continued geopolitical complexities, potential impacts from inflation, and scrutiny over U.S. government defense spending, including the FY24 budget and the debt ceiling. The company remains focused on operational efficiency and delivering key programs like the F-35, while actively managing its financial resources and capital deployment strategy.
Financial Highlights
45 data points| Revenue | $15.13B |
| Cost of Revenue | $13.08B |
| Gross Profit | $2.05B |
| Operating Income | $2.04B |
| Interest Expense | $202.00M |
| Net Income | $1.69B |
| EPS (Basic) | $6.63 |
| EPS (Diluted) | $6.61 |
| Shares Outstanding (Basic) | 254.70M |
| Shares Outstanding (Diluted) | 255.70M |
Key Highlights
- 1Total net sales increased by 1.1% to $15.13 billion in Q1 2023 compared to $14.96 billion in Q1 2022.
- 2Net earnings decreased slightly to $1.69 billion from $1.73 billion year-over-year, while diluted EPS increased to $6.61 from $6.44.
- 3The Space segment showed strong growth with net sales up 16% to $2.96 billion, driven by classified programs and the Next Generation Interceptor.
- 4Aeronautics, the largest segment, saw a 2% decrease in net sales to $6.27 billion, primarily due to lower volume on F-35 production contracts.
- 5Operating profit decreased across Aeronautics (-0.6%), Missiles and Fire Control (-2.1%), and Rotary and Mission Systems (-13.8%), while Space operating profit increased by 12.9%.
- 6The company repurchased $500 million of its common stock during the quarter and paid $784 million in dividends.
- 7Free cash flow increased to $1.27 billion from $1.14 billion in the prior year's quarter.