Lockheed Martin Reviews 3rd Quarter 2024 Monetary Effects

• Web gross sales of $17.1 billion, an build up of one% week over week
• Web income of $1.6 billion, or $6.80 in line with proportion
• Money from operations of $2.4 billion and separate money stream of $2.1 billion
• $1.6 billion of money returned to shareholders thru dividends and proportion repurchases
• Greater proportion repurchase authority through $3.0 billion to a complete authorization of $10.3 billion
• Greater quarterly dividend 5% to $3.30 in line with proportion
• 2024 monetary outlook higher

BETHESDA, Md., Oct. 22, 2024 /PRNewswire/ — Lockheed Martin Company [NYSE: LMT] nowadays reported 3rd quarter 2024 web gross sales of $17.1 billion, in comparison to $16.9 billion within the 3rd quarter of 2023. Web income within the 3rd quarter of 2024 have been $1.6 billion, or $6.80 in line with proportion, in comparison to $1.7 billion, or $6.73 in line with proportion, within the 3rd quarter of 2023. Money from operations used to be $2.4 billion within the 3rd quarter of 2024, in comparison to $2.9 billion within the 3rd quarter of 2023. Separate money stream used to be $2.1 billion within the 3rd quarter of 2024, in comparison to $2.5 billion within the 3rd quarter of 2023.

“In the third quarter, we advanced our strategic, operational and financial priorities, as demonstrated by our record backlog of more than $165 billion, 48 F-35 deliveries, increased production on missile programs, and $2.1 billion of free cash flow generation,” stated Lockheed Martin Chairman, President and CEO Jim Taiclet.

“As a result of our strong year-to-date results and confidence in our near-term performance, we are raising the outlook for full year 2024 sales, segment operating profit, EPS and free cash flow. Looking forward, we continue to make progress on the three key initiatives of our 21st Century Security® strategy of strengthening the resiliency and scalability of our production system, accelerating cutting edge digital and physical technologies into all our mission solutions and our internal operations, and expanding international partnerships to broaden our production capacity and drive more international sales. We are making substantial investments in these areas, while continuing to focus on our fundamental financial objective of driving free cash flow per share growth to generate returns for shareholders. Given our confidence in the company’s ability to deliver on these objectives, our Board has also approved a five percent increase in our quarterly dividend, the 22nd consecutive year of increases.”

Abstract Monetary Effects

Refer to desk items the corporate’s abstract monetary effects.

F-35 Quite a bit 18-19 Word of honour Replace

The corporate extra in negotiations with the U.S. Executive at the Quite a bit 18-19 manufacturing assurance. Despite the fact that negotiations for this assurance are in procedure, the corporate has been acting paintings on Quite a bit 18-19 manufacturing below preliminary buyer authorization and investment to start paintings pursuant to an go acquisition assurance gained within the fourth quarter of 2023. The corporate and its trade workforce proceed paintings in an struggle to satisfy the client’s desired airplane supply dates for the Quite a bit 18-19 airplane. The corporate’s prices started to exceed the complicated acquisition assurance worth within the 3rd quarter of 2024. Consequently, the corporate used to be not able to acknowledge income and benefit on roughly $400 million of prices incurred at the program within the 3rd quarter of 2024, with a minimum of an backup $300 million of affects around the provide chain. Moreover, the corporate used to be averted from invoicing and receiving money of roughly $450 million throughout the 3rd quarter of 2024. On the finish of the 3rd quarter of 2024, the corporate additionally had roughly $2 billion in attainable termination legal responsibility publicity to 3rd events indistinguishable to Quite a bit 18-19 (a few of which might be recoverable within the not likely match of a termination). Recently, the corporate expects to obtain contractual authorization and investment at the Quite a bit 18-19 manufacturing assurance with the U.S. Executive and resume invoicing prices incurred and get well gross sales, benefit, and money within the fourth quarter of 2024. On the other hand, till a last pledge is reached, or the U.S. Executive in a different way supplies backup contractual authorization and investment, the corporate’s result of operations, money flows, and fiscal situation will proceed to be negatively impacted, and the affects may well be subject material and fluctuate from the corporate’s flow 2024 outlook.

2024 Monetary Outlook

Refer to desk and alternative divisions of this information drop include forward-looking statements, which can be in keeping with the corporate’s flow expectancies. Fresh effects would possibly fluctuate materially from the ones projected. It’s the corporate’s apply to not incorporate changes into its monetary outlook for proposed or attainable acquisitions, divestitures, ventures, pension chance switch transactions or discretionary contributions, financing transactions, adjustments in regulation, or unused accounting requirements till such pieces had been consummated, enacted or followed. For backup components that can affect the corporate’s original effects, please see the “Forward-Looking Statements” division on this information drop.

Money Flows and Capital Deployment Actions

The cut in working and separate money flows within the 3rd quarter of 2024 in comparison to the similar length in 2023 used to be basically because of a cut in running capital (outlined as receivables, assurance belongings, and inventories much less accounts payable and assurance liabilities), which incorporates the money affects for the deficit of backup contractual authorization and investment from the U.S. Executive previous to the tip of the 3rd quarter of 2024 at the Quite a bit 18-19 assurance of the F-35 program.

The corporate’s money actions within the 3rd quarter of 2024, incorporated please see:

• paying money dividends of $749 million; and
• paying $850 million to repurchase 1.5 million stocks.

As prior to now introduced on Oct. 2, 2024, the corporate’s board approved the repurchase of its habitual hold as much as an backup $3.0 billion, expanding the full authorization for attainable age habitual hold repurchases to $10.3 billion. The hold repurchase program does no longer have an expiration occasion and is also amended or terminated through the board of administrators at any occasion. The quantity of stocks in the long run bought and the timing of purchases are on the discretion of control and topic to compliance with acceptable regulation and law.

Moreover, on Oct. 2, 2024, the corporate approved a fourth quarter dividend fee of $3.30 in line with proportion, representing an build up of $0.15 in line with proportion over the prior quarterly dividend fee.

Section Effects

The corporate operates in 4 trade areas arranged in keeping with the character of services presented: Aeronautics, Missiles and Fireplace Keep an eye on (MFC), Rotary and Challenge Techniques (RMS) and Area. Refer to desk items abstract working result of the corporate’s trade areas and reconciles those quantities to the corporate’s consolidated monetary effects.

For info on components impacting comparison of the corporate’s branch gross sales, working benefit and working margins, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within the corporate’s Annual Document on Mode 10-Okay for the week ended Dec. 31, 2023.

The corporate’s consolidated web favorable benefit reserving fee changes represented roughly 20% and 19% of overall branch working benefit within the quarters ended Sept. 29, 2024 and Sept. 24, 2023. All through the quarter ended Sept. 29, 2024, the corporate known losses of $80 million on a labeled program on the corporate’s Aeronautics trade branch because of upper than expected prices to reach program targets.

Aeronautics 

Aeronautics’ web gross sales within the 3rd quarter of 2024 reduced $230 million, or 3%, in comparison to the similar length in 2023. The cut used to be basically resulting from decrease web gross sales of $480 million at the F-35 program because of decrease quantity on manufacturing words because of delays in receiving backup contractual authorization and investment below the Quite a bit 18-19 assurance. This cut used to be partly offset through upper web gross sales of $120 million at the C-130 program basically because of upper quantity on manufacturing and sustainment words; and $85 million at the F-16 program because of the ramp up on manufacturing.

Aeronautics’ working benefit within the 3rd quarter of 2024 reduced $12 million, or 2%, in comparison to the similar length in 2023. The cut in working benefit used to be resulting from $25 million from decrease quantity described above and $20 million from destructive assurance combine, partly offset through $30 million of upper benefit reserving fee changes. The rise in benefit reserving fee changes incorporated an $85 million favorable benefit fee adjustment for a declare related to a assurance to modernize and set up unused engines in C-5 Galaxy airplane, partly offset through $80 million of destructive benefit fee changes on a labeled program because of upper than expected prices to reach program targets.

Missiles and Fireplace Keep an eye on

MFC’s web gross sales within the 3rd quarter of 2024 higher $236 million, or 8%, in comparison to the similar length in 2023. The rise used to be basically resulting from upper web gross sales of $285 million for tactical and collision missile methods because of manufacturing ramp up on Guided A couple of Founding Rocket Techniques (GMLRS) and Lengthy Territory Anti-Send Missile (LRASM) methods. This build up used to be partly offset through decrease web gross sales of $90 million for built-in wind and missile protection methods because of decrease quantity on Patriot Complicated Capacity-3 (PAC-3) and Terminal Prime Altitude Section Protection (THAAD).

MFC’s working benefit within the 3rd quarter of 2024 higher $58 million, or 15%, in comparison to the similar length in 2023. The rise in working benefit used to be resulting from $35 million of upper benefit reserving fee changes and $20 million from quantity described above. The rise in benefit reserving fee changes used to be basically because of upper favorable benefit fee changes on PAC-3 because of higher than expected charge efficiency.

Rotary and Challenge Techniques

RMS’ web gross sales within the 3rd quarter of 2024 higher $246 million, or 6%, in comparison to the similar length in 2023. The rise used to be basically resulting from upper web gross sales of $185 million on built-in battle techniques and sensors (IWSS) methods because of upper quantity on radar methods and the Canadian Floor Combatant (CSC) program; and $50 million for Sikorsky helicopter methods because of upper manufacturing quantity on CH-53K, Seahawk and Cloudy Hawk methods.

RMS’ working benefit within the 3rd quarter of 2024 used to be similar to the similar length in 2023 as a $25 million build up because of the upper quantity described above used to be offset through $25 million of decrease benefit reserving fee changes. The cut in benefit reserving fee changes used to be basically because of a reach-forward loss known on a radar program because of backup batch ordering chance known on fixed-price choices.

Area

Area’s web gross sales within the 3rd quarter of 2024 reduced $26 million, or 1%, in comparison to the similar length in 2023. The cut used to be basically resulting from decrease web gross sales of $50 million for industrial civil area because of decrease quantity at the Orion program, partly offset through upper quantity on alternative area exploration methods. This cut used to be partly offset through upper web gross sales of $25 million for strategic and missile protection methods because of upper quantity on reentry methods.

Area’s working benefit within the 3rd quarter of 2024 higher $13 million, or 5%, in comparison to the similar length in 2023. The rise in working benefit used to be resulting from $25 million indistinguishable to favorable assurance combine around the portfolio, partly offset through $10 million of decrease fairness income pushed through decrease initiation quantity from the corporate’s funding in United Founding Alliance (ULA). Benefit reserving fee changes have been similar.

Overall fairness income (ULA) represented roughly $5 million, or 2% of Area’s working benefit within the 3rd quarter of 2024, in comparison to roughly $15 million, or 6% for a similar length in 2023.

Source of revenue Taxes

The corporate’s efficient source of revenue tax fee used to be 15.4% and 13.8% for the quarters ended Sept. 29, 2024 and Sept. 24, 2023. The velocity for the 3rd quarter of 2024 used to be upper than the 3rd quarter of 2023 basically because of backup analysis and building tax credit that have been claimed for years previous to 2023 mirrored within the 2023 fee. The charges for each sessions benefited from analysis and building tax credit, tax deductions for overseas derived intangible source of revenue and dividends paid to the corporate’s outlined contribution plans with an worker hold possession plan property.

Importance of Non-GAAP Monetary Measures

This information drop comprises please see non-generally approved accounting rules (non-GAAP) monetary measures (as outlined through U.S. Securities and Alternate Fee (SEC) Legislation G). Moment control believes that those non-GAAP monetary measures is also helpful in comparing the monetary efficiency of the corporate, this knowledge will have to be regarded as supplemental to, and no longer an alternative choice to, monetary knowledge ready according to GAAP. As well as, the corporate’s definitions for non-GAAP monetary measures would possibly fluctuate from in a similar fashion titled measures impaired through alternative corporations or analysts.

Industry branch working benefit

Industry branch working benefit represents working take advantage of the corporate’s trade areas earlier than unallocated source of revenue and expense. This measure is impaired through the corporate’s senior control in comparing the efficiency of its trade areas and is a efficiency function within the corporate’s annual incentive plan. Industry branch working margin is calculated through dividing trade branch working benefit through gross sales. The desk underneath reconciles the non-GAAP measure trade branch working benefit with probably the most immediately similar GAAP monetary measure, consolidated working benefit.

Separate money stream

Separate money stream is money from operations much less capital expenditures. The corporate’s capital expenditures are created from apparatus and amenities infrastructure and knowledge generation (inclusive of prices for the advance or acquire of internal-use device which might be capitalized). The corporate makes use of separate money stream to guage its trade efficiency and total liquidity and this can be a efficiency function within the corporate’s annual and long-term incentive plans. The corporate believes separate money stream is an invaluable measure for buyers as it represents the amount of money generated from operations nearest reinvesting within the trade and that can be to be had to go back to stockholders and collectors (thru dividends, hold repurchases and debt repayments) or to be had to capitaltreasury acquisitions or alternative investments. All of the separate money stream quantity isn’t essentially to be had for discretionary expenditures, alternatively, as it does no longer account for sure necessary expenditures, such because the compensation of maturing debt and age pension contributions.

Adjusted income earlier than source of revenue taxes; adjusted web income and changed diluted EPS

Income earlier than source of revenue taxes, web income and diluted income in line with proportion (EPS) have been impacted through sure non-operational pieces for all sessions. Control believes the presentation of those measures adjusted for the affects of those non-operational pieces comes in handy to buyers in working out the corporate’s underlying trade efficiency and evaluating efficiency from length to length. The tax results indistinguishable to every adjustment that impacted income earlier than source of revenue taxes are in keeping with a combined tax fee that mixes the federal statutory fee of 21% plus an estimated climate tax fee.

The desk underneath displays the affect to income earlier than source of revenue taxes, web income and diluted EPS for sure non-operational pieces:

Webcast and Convention Name Data

Lockheed Martin Company will webcast reside the income effects convention name (listen-only method) on Tuesday, Oct. 22, 2024, at 11:00 a.m. ET at the Lockheed Martin Investor Members of the family web page at www.lockheedmartin.com/investor. The accompanying presentation slides and related monetary charts also are to be had at www.lockheedmartin.com/investor.

For backup knowledge, talk over with the corporate’s web page: www.lockheedmartin.com.

About Lockheed Martin

Lockheed Martin is a world protection generation corporate using innovation and advancing clinical discovery. Our all-domain venture answers and twenty first Century Safety® visual boost up the supply of transformative applied sciences to assure the ones we grant all the time keep forward of in a position. Additional information at www.lockheedmartin.com.

Ahead-Having a look Statements

This information drop comprises statements that, to the level they don’t seem to be recitations of ancient truth, represent forward-looking statements throughout the which means of the federal securities rules, and are in keeping with Lockheed Martin’s flow expectancies and suppositions. The phrases “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and matching expressions are meant to spot forward-looking statements. Those statements aren’t promises of age efficiency and are topic to dangers and uncertainties. Fresh effects would possibly fluctuate materially because of components comparable to:

• the corporate’s reliance on words with the U.S. Executive, which can be depending on U.S. Executive investment and can also be terminated for comfort, and the corporate’s talent to barter favorable assurance phrases;
• finances indecision, the danger of age finances cuts, the affect of constant solution investment mechanisms and the debt ceiling and the potential of executive shutdowns and converting investment and acquisition priorities;
• dangers indistinguishable to the advance, manufacturing, sustainment, efficiency, agenda, charge and necessities of complicated and technologically complicated methods, together with the F-35 program;
• deliberate manufacturing charges and orders for important methods, compliance with stringent efficiency and reliability requirements, and fabrics availability, together with executive furnished apparatus;
• the timing of assurance awards or delays in assurance definitization in addition to the timing and buyer acceptance of product deliveries and function milestones;
• the corporate’s talent to get well prices below U.S. Executive words and the combination of fixed-price and cost-reimbursable words;
• buyer procurement insurance policies that shift chance to contractors, together with competitively bid methods with fixed-price building paintings or follow-on manufacturing choices or alternative monetary dangers; and the affect of investments, charge overruns or alternative charge pressures and function problems on constant charge words;
• adjustments in procurement and alternative laws and insurance policies affecting the corporate’s trade, export of its merchandise, charge allowability or healing, most well-liked assurance variety, and function and walk bills coverage;
• efficiency and fiscal viability of key providers, teammates, joint ventures (together with United Founding Alliance), three way partnership companions, subcontractors and consumers;
• financial, trade, trade and political situations together with their results on governmental coverage;
• the affect of inflation and alternative charge pressures;
• the affect of pandemics and epidemics at the corporate’s trade and fiscal effects, together with provide chain disruptions and delays, worker absences, and program delays;
• executive movements that cancel the sale or supply of the corporate’s merchandise (comparable to delays in approvals for exports requiring Congressional notification);
• industry insurance policies or sanctions (together with Chinese language sanctions at the corporate or its providers, teammates or companions, U.S. Executive sanctions on Türkish entities and individuals, and oblique results of sanctions on Russia to the corporate’s provide chain);
• the corporate’s good fortune increasing into and doing trade in adjoining markets and the world over and the hazards posed through world gross sales;
• adjustments in overseas nationwide priorities and overseas executive budgets and deliberate orders, together with attainable results from fluctuations in foreign money alternate charges;
• the aggressive condition for the corporate’s services, together with festival from startups and non-traditional protection contractors;
• the corporate’s talent to create and commercialize unused applied sciences and merchandise, together with rising virtual and community applied sciences and features;
• the corporate’s talent to learn totally from or adequately give protection to its highbrow quality rights;
• the corporate’s talent to draw and accumulation a extremely professional group of workers and the affect of labor stoppages or alternative hard work disruptions;
• cyber or alternative safety ultimatum or alternative disruptions confronted through the corporate or its providers;
• the corporate’s talent to put in force and proceed, and the timing and affect of, capitalization adjustments comparable to proportion repurchases, dividend bills and financing transactions;
• the accuracy of the corporate’s estimates and projections;
• adjustments in 401-k suppositions and original returns on pension belongings; money investment necessities and pension chance transfers and related agreement fees;
• knowing the expected advantages of acquisitions or divestitures, investments, joint ventures, teaming preparations or inside reorganizations, and marketplace volatility affecting the truthful worth of investments which might be marked to marketplace;
• the corporate’s efforts to extend the potency of its operations and give a boost to the affordability of its services, together with thru virtual transformation and price relief tasks;
• the danger of an impairment of the corporate’s belongings, together with the prospective impairment of approval and intangibles;
• the provision and adequacy of the corporate’s insurance coverage and indemnities;
• affects of condition exchange and compliance with rules, laws, insurance policies, and buyer necessities in line with condition exchange issues;
• adjustments in accounting, U.S. or overseas tax, export or alternative rules, laws, and insurance policies and their interpretation or software, and adjustments within the quantity or reevaluation of unsure tax positions; and
• the end result of felony complaints, bid protests, environmental remediation efforts, audits, executive investigations or executive allegations that the corporate has did not agree to regulation, alternative contingencies and U.S. Executive id of deficiencies in its trade techniques.

Those are solely one of the vital components that can have an effect on the forward-looking statements contained on this information drop. For a dialogue figuring out backup impressive components that might purpose original effects to fluctuate materially from the ones expected within the forward-looking statements, see the corporate’s filings with the U.S. Securities and Alternate Fee together with, however no longer restricted to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” within the corporate’s most up-to-date Annual Document on Mode 10-Okay and next quarterly studies on Mode 10-Q. The corporate’s filings is also accessed throughout the Investor Members of the family web page of its web page, www.lockheedmartin.com/investor, or throughout the web page maintained through the SEC at www.sec.gov.

The corporate’s original monetary effects most likely will likely be other from the ones projected because of the inherent nature of projections. Given those uncertainties, forward-looking statements will have to no longer be depended on in making funding selections. The forward-looking statements contained on this information drop discuss solely as of the occasion of its submitting. Aside from the place required through acceptable regulation, the corporate expressly disclaims an obligation to handover updates to forward-looking statements nearest the occasion of this information drop to replicate next occasions, modified instances, adjustments in expectancies, or the estimates and suppositions related to them. The forward-looking statements on this information drop are meant to be topic to the secure harbor coverage equipped through the federal securities rules.

SOURCE Lockheed Martin Company

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