On July 23, 2024, Lockheed Martin Corp (LMT, Financial) released its 8-K filing for the second quarter of 2024, showcasing a solid financial performance that surpassed analyst expectations. The company reported net sales of $18.1 billion, a 9% increase year-over-year, and net earnings of $1.6 billion, or $6.85 per share.
Company Overview
Lockheed Martin Corp (LMT, Financial) is the world's largest defense contractor, dominating the Western market for high-end fighter aircraft since securing the F-35 Joint Strike Fighter program in 2001. The company's largest segment, Aeronautics, derives a significant portion of its revenue from the F-35. Other segments include Rotary and Mission Systems, Missiles and Fire Control, and Space Systems.
Performance Highlights
Lockheed Martin Corp (LMT, Financial) reported net sales of $18.1 billion for Q2 2024, compared to $16.7 billion in Q2 2023. Net earnings for the quarter were $1.6 billion, or $6.85 per share, compared to $1.7 billion, or $6.63 per share, in the same period last year. Cash from operations was $1.9 billion, and free cash flow was $1.5 billion, both showing significant improvements from the previous year.
“We delivered strong second quarter financial results, with year-over-year growth of 9% in sales and 10% in segment operating profit, and free cash flow generation in excess of $1.5 billion,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.
Financial Achievements
Lockheed Martin Corp (LMT, Financial) returned $1.6 billion to shareholders through dividends and share repurchases in Q2 2024. The company also raised its 2024 full-year outlook for sales, segment operating profit, and earnings per share, reflecting confidence in its ongoing performance.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $18.1 billion | $16.7 billion |
| Net Earnings | $1.6 billion | $1.7 billion |
| Diluted EPS | $6.85 | $6.63 |
| Cash from Operations | $1.9 billion | $1.1 billion |
| Free Cash Flow | $1.5 billion | $771 million |
Segment Performance
Lockheed Martin Corp (LMT, Financial) operates in four business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Each segment showed notable performance improvements in Q2 2024:
- Aeronautics: Net sales increased by 6% to $7.3 billion, driven by higher volumes on the F-35 and F-16 programs.
- Missiles and Fire Control: Net sales rose by 13% to $3.1 billion, primarily due to production ramp-ups on tactical and strike missile programs.
- Rotary and Mission Systems: Net sales grew by 17% to $4.5 billion, with significant contributions from integrated warfare systems and sensors programs.
- Space: Net sales saw a modest increase of 1% to $3.2 billion, supported by higher volumes on strategic and missile defense programs.
Analysis and Outlook
Lockheed Martin Corp (LMT, Financial)'s strong Q2 2024 performance underscores its robust position in the aerospace and defense industry. The company's ability to generate substantial free cash flow and return value to shareholders highlights its financial strength. With an increased full-year outlook, Lockheed Martin Corp (LMT) is well-positioned to continue its growth trajectory.
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Explore the complete 8-K earnings release (here) from Lockheed Martin Corp for further details.
