Lockheed Martin Earnings
Lockheed Martin Corporation has released its financial results for the fourth quarter (Q4) of 2024, alongside the full year results, revealing impactful challenges predominantly linked to classified programs. While the company showed year-over-year growth in net sales, a marked downturn in net earnings and earnings per share was noted.
Consolidated Financial Metrics
The table below outlines Lockheed Martin's key financial metrics for the Q4 and full year 2024 compared to the previous year:
| Financial Metric | Q4 2024 | Q4 2023 | % Change Q4 2023 vs Q4 2024 | Full Year 2024 | Full Year 2023 | % Change 2023 vs 2024 |
|---|---|---|---|---|---|---|
| Net Sales | $18.6 billion | $18.9 billion | -1.6% | $71.0 billion | $67.6 billion | +5% |
| Net Earnings | $527 million | $1.9 billion | -72.3% | $5.3 billion | $6.9 billion | -23.2% |
| Earnings Per Share (EPS) | $2.22 | $7.58 | -70.7% | $22.31 | $27.55 | -19% |
| Cash from Operations | $1.0 billion | $2.4 billion | -58.3% | $7.0 billion | $7.9 billion | -11.4% |
| Free Cash Flow | $441 million | $1.7 billion | -74.1% | $5.3 billion | $6.2 billion | -14.5% |
Factors contributing to this downturn in earnings include substantial losses incurred on classified programs, as well as a significant pension contribution impacting the free cash flow. Despite these issues, the company managed to increase its net sales by 5% over the full year, indicating solid demand for its advanced defense solutions.
Revenue Breakdown
The breakdown of net sales by business segment reveals a mixed performance across Lockheed Martin’s operations. The table below highlights net sales performance by segment:
| Segment | Q4 2024 Net Sales | Q4 2023 Net Sales | % Change Q4 2023 vs Q4 2024 | Full Year 2024 Net Sales | Full Year 2023 Net Sales | % Change 2023 vs 2024 |
|---|---|---|---|---|---|---|
| Aeronautics | $5.71 billion | $5.31 billion | +7.5% | $24.7 billion | $23.6 billion | +4.7% |
| Missiles and Fire Control | $3.23 billion | $2.99 billion | +8.0% | $12.1 billion | $10.7 billion | +13.1% |
| Rotary and Mission Systems | $3.92 billion | $4.37 billion | -10.3% | $17.6 billion | $16.6 billion | +6.0% |
| Space | $2.95 billion | $3.39 billion | -13.0% | $8.4 billion | $8.5 billion | -1.2% |
Significant revenue growth was observed in the Aeronautics and Missiles and Fire Control segments, both on a quarterly and yearly basis. However, the Space and Rotary and Mission Systems segments experienced declines, primarily impacted by reduced volumes in national security space programs.
Key Developments
Lockheed Martin experienced notable operational highlights in 2024, including:
- Closing the year with a record backlog of $176.0 billion.
- Investing over $3 billion in research, development, and capital to enhance its portfolio and technology base.
- Playing an instrumental role in advancing cutting-edge air power solutions through integration of state-of-the-art aircraft and AI technology, fortifying the company’s standing in defense innovation.
Comments from Company Officers
Jim Taiclet, Lockheed Martin's Chairman, President, and CEO, reaffirmed the company’s dedication to overcoming classified program setbacks while emphasizing the importance of its ongoing strategic investments and advancements designed to support U.S. defense.
Dividends and Share Repurchases
Throughout 2024, Lockheed Martin returned $6.8 billion to its shareholders through a combination of dividends and share repurchases. This included dividend payments totaling $3.1 billion and share repurchases amounting to $3.7 billion.
Lockheed Martin Stock Forecast
Following the earnings announcement, Lockheed Martin's stock dropped approximately 9.17%, reflecting market sentiment impacted by both the financial disclosures and challenges faced with classified programs. Bearing in mind the firm’s underlying strong demand, investments in technological advancements, and the pressures from current classified issues, we project a moderate rebound in stock price.
High Projection : $485.00, assuming improved classified program performance and continued strength in other business sectors.
Low Projection : $440.00, accounting for potential further classified program disruptions and external market challenges.
Lockheed Martin's market capitalization remains substantial at approximately $111.15 billion, signaling a resilient position despite recent financial hurdles. Investors looking ahead to 2025 may want to keep a keen eye on how the company's strategic investments play out amid geopolitical tensions and defense spending trends.
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