What was the primary driver for the increase in net sales?

The primary driver for the increase in net sales was higher product sales across all segments, notably in Missiles and Fire Control (MFC) due to production ramp-up on key missile programs like GMLRS and HIMARS, and in Aeronautics due to higher volume on classified programs and the F-35 program. Service sales also saw an increase driven by higher volumes in Aeronautics, Rotary and Mission Systems (RMS), and Space.

Why did net earnings decrease despite higher sales?

Net earnings decreased primarily due to a $100 million reach-forward loss recognized in the Missiles and Fire Control (MFC) segment for an option on a classified program, and an unfavorable profit adjustment on the HELLFIRE program. Additionally, higher interest expense resulting from recent debt issuances and a decrease in non-service FAS pension income compared to the prior year contributed to the decline.

How is the company managing supply chain disruptions and inflation?

Lockheed Martin is actively working to mitigate supply chain issues and inflationary pressures by supporting small businesses and at-risk suppliers, deploying resources to work with its supply chain, executing long-term contracts, identifying alternative sources, and optimizing its supply chain organization. The company also aims to improve operational efficiency and cost competitiveness to offset some cost increases.

What is the significance of the $2.0 billion debt issuance?

The $2.0 billion debt issuance in January 2024 provides the company with additional financial flexibility, strengthens its liquidity, and diversifies its funding sources. The proceeds are generally available for corporate purposes, including potential investments, share repurchases, and debt management.

LMT 10-Q Quarterly Report Q1 FY2024 — Revenue, Net Income, EPS

Summary

Lockheed Martin Corporation (LMT) reported its first-quarter 2024 results, showing a solid increase in net sales driven by growth across all business segments, particularly in Missiles and Fire Control (MFC) and Rotary and Mission Systems (RMS). While total net sales rose to $17.2 billion from $15.1 billion year-over-year, net earnings saw a slight decrease to $1.5 billion from $1.7 billion, resulting in diluted earnings per share of $6.39 compared to $6.61 in the prior year's quarter. Despite the dip in net earnings, the company's operational performance remains strong, with a robust backlog of $159.4 billion providing visibility for future revenue. Key financial activities in the quarter included significant debt issuance totaling $2.0 billion, a $1.0 billion share repurchase program, and $3.15 per share in dividends paid. The company also highlighted continued demand for its products, especially in light of the evolving global geopolitical landscape, and noted ongoing efforts to mitigate supply chain challenges and inflationary pressures.

Financial Highlights

46 data points

Beta

Revenue

$17.20B

0.1% Gross Margin

Net Income

$1.54B

0.1% Net Margin

EPS (Diluted)

$6.39

Total Assets

$54.96B

Cash & Equivalents

$2.79B

Free Cash Flow

$1.64B

Financial Statements

Beta

Revenue	$17.20B
Cost of Revenue	$15.20B
Gross Profit	$1.99B
Operating Income	$2.03B
Interest Expense	$255.00M
Net Income	$1.54B
EPS (Basic)	$6.42
EPS (Diluted)	$6.39
Shares Outstanding (Basic)	240.70M
Shares Outstanding (Diluted)	241.60M

Key Highlights

1Total net sales increased by 13.7% to $17.2 billion in Q1 2024 from $15.1 billion in Q1 2023.
2Net earnings decreased by 8.6% to $1.5 billion ($6.39 per diluted share) in Q1 2024 from $1.7 billion ($6.61 per diluted share) in Q1 2023.
3The company issued $2.0 billion in senior unsecured notes in January 2024 to strengthen its financial position.
4Lockheed Martin repurchased $1.0 billion of its common stock during the quarter, demonstrating a commitment to returning capital to shareholders.
5The F-35 program continues to see strong international demand, with new orders and commitments from several countries.
6The company's backlog stood at $159.4 billion as of March 31, 2024, providing significant revenue visibility.
7Operating profit in the Missiles and Fire Control segment decreased by 17.5% due to a $100 million reach-forward loss recognized on a classified program.

LOCKHEED MARTIN CORP Quarterly Report for Q1 Ended Mar 31, 2024

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions