$LMT (-1.89%) | Lockheed Martin Q3'24 Earnings Highlights

🔹 Adj EPS: $6.84 (Est. $6.50) 🟢

🔹 Revenue: $17.1B (Est. $17.37B) 🔴; 1% YoY

🔹 Free Cash Flow: $2.1B; DOWN from $2.5B YoY

🔹 Total Backlog: $165.7B; UP +6.2% YoY

FY24 Guidance:

🔹 EPS: $26.65 (Prev. $26.10–$26.60; Est. $26.44) 🟢

🔹 Revenue: $71.25B (Prev. $70.50B–$71.50B; Est. $71.06B) 🟢

🔹 Free Cash Flow: ~$6.2B (Prev. $6.0B–$6.3B)

Other Key Metrics:

🔹 Net Earnings: $1.6B; DOWN from $1.7B YoY

🔹 Operating Profit: $2.14B (Est. $2.07B) 🟢; UP +5% YoY

🔹 Operating Margin: 12.5% (vs. 12.1% YoY)

Segment Performance:

Aeronautics:

🔹 Revenue: $6.49B (Est. $6.80B) 🔴; DOWN -3% YoY

🔹 Operating Profit: $659M; DOWN -2% YoY

🔹 Operating Margin: 10.2%

🔸 48 F-35 aircraft delivered; revenue affected by F-35 contract delays

Missiles and Fire Control (MFC):

🔹 Revenue: $3.18B; UP +8% YoY

🔹 Operating Profit: $456M; UP +15% YoY

🔹 Operating Margin: 14.4%

🔸 Strong growth in GMLRS and LRASM missile programs

Rotary and Mission Systems (RMS):

🔹 Revenue: $4.37B; UP +6% YoY

🔹 Operating Profit: $483M; Flat YoY

🔹 Operating Margin: 11.1%

🔸 Higher volume on Integrated Warfare Systems and Sikorsky helicopter programs (CH-53K, Seahawk, Black Hawk)

Space:

🔹 Revenue: $3.08B; DOWN -1% YoY

🔹 Operating Profit: $272M; UP +5% YoY

🔹 Operating Margin: 8.8%

🔸 Growth in strategic missile defense programs offset by lower volume on the Orion program

Shareholder Returns:

🔹 Dividends and Share Repurchases: Returned $1.6B to shareholders

🔹 Increased Share Repurchase Authorization: By $3.0B to a total of $10.3B

🔹 Increased Quarterly Dividend: +5% to $3.30 per share

Operational Highlights:

🔹 Key Contracts: Strong demand for F-35, missile programs, and classified projects

🔹 F-35 Program Update: Revenue impacted by delays in Lots 18-19 contract authorization, with resolution expected in Q4

🔸 Expect recovery of delayed F-35 revenue and cash flow in Q

🔹 Cash from Operations: $2.4B, reflecting solid cash generation despite F-35 delays