Summary
Lockheed Martin Corporation (LMT) reported solid financial results for the second quarter and first half of 2024, demonstrating revenue growth and strong operational performance across its key segments. Total net sales increased by approximately 8% for the quarter and 11% for the six-month period year-over-year, driven by robust demand in Aeronautics, Missiles and Fire Control, and Rotary and Mission Systems. Net earnings for the quarter were $1.64 billion, or $6.85 per diluted share, a slight decrease from the prior year's $1.68 billion ($6.63 per diluted share), but earnings per share showed an increase due to fewer outstanding shares. The company continues to benefit from a strong geopolitical environment, leading to increased demand for its defense products and services, particularly for munitions replenishment and strategic defense systems. Financially, Lockheed Martin maintained a healthy balance sheet with significant cash and cash equivalents, and strong operating cash flow. The company returned substantial capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value. Despite persistent supply chain challenges and inflationary pressures impacting the broader industry, LMT has effectively managed these headwinds through strategic initiatives and operational efficiencies. The company's outlook remains positive, supported by a substantial backlog and continued demand across its diverse portfolio, though ongoing uncertainties in government appropriations and geopolitical events warrant close monitoring.
Financial Highlights
46 data points| Revenue | $18.12B |
| Cost of Revenue | $15.99B |
| Gross Profit | $2.13B |
| Operating Income | $2.15B |
| Net Income | $1.64B |
| EPS (Basic) | $6.87 |
| EPS (Diluted) | $6.85 |
| Shares Outstanding (Basic) | 238.90M |
| Shares Outstanding (Diluted) | 239.60M |
Key Highlights
- 1Total net sales for the quarter increased by 8.6% to $18.12 billion, and for the six months increased by 11.0% to $35.32 billion, compared to the prior year periods.
- 2Net earnings for the quarter were $1.64 billion ($6.85 per diluted share), compared to $1.68 billion ($6.63 per diluted share) in the prior year. For the six months, net earnings were $3.19 billion ($13.24 per diluted share), down from $3.37 billion ($13.24 per diluted share) in the prior year.
- 3Operating profit for the quarter rose 0.6% to $2.15 billion, and for the six months increased 0.1% to $4.18 billion, with notable growth in the Missiles and Fire Control and Space segments.
- 4The company repurchased approximately $1.9 billion of common stock and paid $1.5 billion in dividends during the first six months of 2024, demonstrating strong capital return to shareholders.
- 5Contract assets increased by $724 million in the first six months of 2024, reflecting revenue recognized that has not yet been billed to customers.
- 6The company has $158.3 billion in backlog as of June 30, 2024, with approximately 36% expected to be recognized as revenue over the next 12 months.
- 7Impairment and severance charges of $87 million were recorded in the second quarter of 2024, primarily related to a strategic review of the Sikorsky business and impacts from the U.S. Army's cancellation of the FARA program.