Lockheed Martin Corp (LMT, Financial) released its Q3 2023 earnings report on October 17, 2023. The company reported net sales of $16.9 billion, a 2% increase compared to $16.6 billion in Q3 2022. Net earnings for the quarter were $1.7 billion, or $6.73 per share, compared to $1.8 billion, or $6.71 per share, in the same quarter of the previous year.
Financial Highlights
Lockheed Martin's cash from operations for Q3 2023 was $2.9 billion, compared to $3.1 billion in Q3 2022. The company generated free cash flow of $2.5 billion, compared to $2.7 billion in the same quarter of the previous year. The company returned $2.5 billion of cash to shareholders through dividends and share repurchases. Additionally, the company increased its share repurchase authority by $6.0 billion to a total authorization of $13.0 billion and increased its quarterly dividend to $3.15 per share.
Company Performance and Outlook
Lockheed Martin's Chairman, President, and CEO, Jim Taiclet, commented on the company's performance, stating,
Our third quarter results were at or above our expectations across the board, generating $2.5 billion of free cash flow, with nearly 100% returned to shareholders through dividends and share repurchases."He also mentioned the company's robust backlog of $156 billion and the success of their 21st Century Security strategy. Looking ahead, the company plans to continue its strategy of building capacity, efficiency, and resilience into its production operations, driving advanced digital technologies, and expanding its international business and operations.
Segment Results
The company operates in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. Net sales for Aeronautics were $6.7 billion, MFC reported $2.9 billion, RMS had $4.1 billion, and Space reported $3.1 billion. The company's business segment operating profit was $1.8 billion.
2023 Financial Outlook
Lockheed Martin reaffirmed its 2023 financial outlook, projecting net sales of approximately $66.25 billion to $66.75 billion, business segment operating profit of approximately $7.325 billion to $7.375 billion, and diluted earnings per share of approximately $27.00 to $27.20. The company also expects cash from operations of approximately $8.15 billion and free cash flow of $6.2 billion.
