Lockheed Martin Corporation (LMT) Bundle
A Brief History of Lockheed Martin Corporation
Lockheed Martin Corporation, a global aerospace and defense company, has undergone significant transformations and expansions over the years. As of 2024, the company's financial performance reflects its strategic focus on advanced technologies and defense solutions.
Financial Performance Overview
For the nine months ended September 29, 2024, Lockheed Martin reported total net sales of $52.42 billion. This represents a substantial increase compared to $50.06 billion in the same period of 2023.
| Segment | Net Sales (2024) | Net Sales (2023) |
|---|---|---|
| Aeronautics | $20.61 billion | $19.86 billion |
| Missiles and Fire Control (MFC) | $9.27 billion | $8.99 billion |
| Rotary and Mission Systems (RMS) | $13.00 billion | $12.73 billion |
| Space | $9.54 billion | $9.48 billion |
Operating Income and Profit Margins
Lockheed Martin's operating income for the nine months ended September 29, 2024, was $5.12 billion, with an operating margin of 9.8%, compared to $4.85 billion and 9.7% respectively in the same period of 2023. The increase in operating income reflects improved efficiency and cost management across its segments.
Backlog and Future Contracts
As of September 29, 2024, Lockheed Martin's backlog stood at $165.7 billion, indicating a robust pipeline of future contracts. Approximately 35% of this backlog is expected to convert to revenue within the next 12 months.
Dividend Payments and Share Repurchases
During the nine months ended September 29, 2024, Lockheed Martin paid dividends totaling $2.3 billion ($9.45 per share), consistent with its commitment to returning value to shareholders. Additionally, the company repurchased 5.7 million shares for a total cost of $2.7 billion.
Key Programs and Developments
The F-35 program remains a cornerstone of Lockheed Martin's business, with the company having delivered 1,040 production F-35 aircraft as of September 29, 2024. The backlog for the F-35 program includes 325 aircraft, ensuring ongoing revenue streams for the company.
Liquidity Position
Lockheed Martin's liquidity position is strong, with cash and cash equivalents of $3.2 billion as of September 29, 2024. The company has access to a $3.0 billion revolving credit facility, which it has not drawn upon as of the reporting date.
Environmental Liabilities
Lockheed Martin recorded liabilities related to environmental matters totaling $697 million as of September 29, 2024. The company continues to monitor and manage its environmental responsibilities in accordance with applicable regulations.
Conclusion
Lockheed Martin's financial and operational metrics as of 2024 demonstrate its strong position in the aerospace and defense sector, supported by a diverse portfolio and strategic focus on innovation.
A Who Owns Lockheed Martin Corporation (LMT)
Major Shareholders
As of 2024, Lockheed Martin Corporation (LMT) has a diverse ownership structure, with significant stakes held by both institutional and individual investors.
| Shareholder Type | Ownership Percentage | Number of Shares Owned (approx.) |
|---|---|---|
| Institutional Investors | 80.4% | 200 million |
| Individual Investors | 19.6% | 49 million |
Top Institutional Shareholders
Several institutional investors hold substantial portions of Lockheed Martin's shares:
| Institution | Ownership Percentage | Number of Shares Owned (approx.) |
|---|---|---|
| The Vanguard Group | 8.2% | 20 million |
| BlackRock, Inc. | 7.5% | 18.75 million |
| State Street Corporation | 4.5% | 11.25 million |
| Fidelity Investments | 3.4% | 8.5 million |
| Capital Research Global Investors | 3.1% | 7.75 million |
Shareholder Composition Over Time
The composition of Lockheed Martin's shareholders has shifted over the years, reflecting broader market trends and the company's performance.
| Year | Institutional Ownership (%) | Individual Ownership (%) |
|---|---|---|
| 2020 | 78.5% | 21.5% |
| 2021 | 79.2% | 20.8% |
| 2022 | 79.8% | 20.2% |
| 2023 | 80.0% | 20.0% |
| 2024 | 80.4% | 19.6% |
Ownership Changes and Trends
Lockheed Martin's stock repurchase program has influenced its ownership structure, with the company repurchasing approximately 5.7 million shares for $2.7 billion in 2024. This has reduced the total shares outstanding and increased the ownership percentage of remaining shareholders.
| Year | Shares Repurchased (millions) | Total Cost ($ billion) |
|---|---|---|
| 2022 | 6.7 | 3.0 |
| 2023 | 5.5 | 2.5 |
| 2024 | 5.7 | 2.7 |
Dividends and Shareholder Returns
Lockheed Martin has a strong history of returning value to its shareholders through dividends. In the first three quarters of 2024, the company declared dividends totaling $2.3 billion ($9.45 per share).
| Year | Dividends Declared ($ billion) | Dividend per Share ($) |
|---|---|---|
| 2022 | 2.1 | 9.00 |
| 2023 | 2.3 | 9.45 |
| 2024 | Estimated 2.5 | 9.95 |
Lockheed Martin Corporation (LMT) Mission Statement
Lockheed Martin Corporation's mission statement emphasizes its commitment to "innovation, technology, and excellence" in delivering advanced solutions to customers. The company aims to strengthen its position as a global leader in aerospace and defense, focusing on meeting the evolving needs of its clients and enhancing national security.
Financial Performance Overview
As of September 29, 2024, Lockheed Martin reported a total net sales of $52.42 billion for the nine months ended, reflecting a significant increase compared to $48.70 billion for the same period in 2023. The company's operating profit reached $5.66 billion, up from $5.35 billion year-over-year.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Net Sales | $52.42 billion | $48.70 billion |
| Operating Profit | $5.66 billion | $5.35 billion |
| Net Earnings | $4.81 billion ($20.05 per share) | $5.05 billion ($19.97 per share) |
| Cash and Cash Equivalents | $3.15 billion | $3.55 billion |
Business Segments
Lockheed Martin operates through four primary business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. The following table provides a breakdown of net sales and operating profits by segment for the nine months ended September 29, 2024.
| Business Segment | Net Sales (in billions) | Operating Profit (in billions) |
|---|---|---|
| Aeronautics | $20.61 | $2.09 |
| Missiles and Fire Control | $9.27 | $1.22 |
| Rotary and Mission Systems | $13.00 | $1.41 |
| Space | $9.54 | $0.94 |
Research and Development
Lockheed Martin continues to invest heavily in research and development (R&D) to maintain its technological edge. The company allocated approximately $1.9 billion to R&D in the first nine months of 2024, a slight increase from $1.8 billion in the same period in 2023.
Dividends
During the nine months ended September 29, 2024, Lockheed Martin paid cash dividends totaling $2.3 billion, equating to $9.45 per share. The company has announced a fourth-quarter dividend of $3.30 per share, marking an increase from the previous quarter's $3.15 per share payment.
Backlog
As of September 29, 2024, Lockheed Martin's total backlog stood at $165.7 billion, with approximately 35% expected to be recognized as revenue within the next 12 months. This backlog reflects a robust demand for the company's products and services across various sectors including defense and aerospace.
Conclusion
Lockheed Martin's commitment to its mission is evident in its financial performance and strategic investments in technology and innovation. The company continues to focus on delivering value to its stakeholders while addressing the evolving challenges in the defense and aerospace sectors.
How Lockheed Martin Corporation (LMT) Works
Business Segments
Lockheed Martin operates through four primary business segments:
- Aeronautics
- Missiles and Fire Control (MFC)
- Rotary and Mission Systems (RMS)
- Space
Financial Overview
As of September 29, 2024, Lockheed Martin reported the following financial results (in millions):
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating Profit (Q3 2024) | Operating Profit (Q3 2023) | Operating Margin (Q3 2024) |
|---|---|---|---|---|---|
| Aeronautics | $6,487 | $6,717 | $659 | $671 | 10.2% |
| Missiles and Fire Control | $3,175 | $2,939 | $456 | $398 | 14.4% |
| Rotary and Mission Systems | $4,367 | $4,121 | $483 | $482 | 11.1% |
| Space | $3,075 | $3,101 | $272 | $259 | 8.8% |
| Total | $17,104 | $16,878 | $1,870 | $1,810 | 10.9% |
Net Earnings
For the quarter ended September 29, 2024, Lockheed Martin reported net earnings of:
- $1.6 billion ($6.80 per share)
For the nine months ended September 29, 2024, net earnings were:
- $4.8 billion ($20.05 per share)
Sales Composition
Net sales for the nine months ended September 29, 2024, were composed as follows (in millions):
| Segment | Products | Services | Total Net Sales |
|---|---|---|---|
| Aeronautics | $17,113 | $3,496 | $20,609 |
| Missiles and Fire Control | $8,217 | $1,053 | $9,270 |
| Rotary and Mission Systems | $10,500 | $2,503 | $13,003 |
| Space | $7,947 | $1,592 | $9,539 |
| Total | $43,777 | $8,644 | $52,421 |
Backlog
As of September 29, 2024, Lockheed Martin's backlog was:
- $165.7 billion
Approximately 35% of this backlog is expected to be recognized as revenue over the next 12 months.
Liquidity and Capital Resources
As of September 29, 2024, Lockheed Martin had:
- Cash and cash equivalents: $3.2 billion
- Revolving credit facility: $3.0 billion
Dividends
During the nine months ended September 29, 2024, Lockheed Martin paid cash dividends totaling:
- $2.3 billion ($9.45 per share)
A fourth-quarter 2024 dividend payment of $3.30 per share has been authorized.
Investment Activities
Lockheed Martin's investments in companies developing new technologies amounted to:
- $603 million as of September 29, 2024
Operating Results Summary
The summary of operating results for the nine months ended September 29, 2024, is as follows (in millions):
| Segment | Net Sales | Operating Profit |
|---|---|---|
| Aeronautics | $20,609 | $2,089 |
| Missiles and Fire Control | $9,270 | $1,217 |
| Rotary and Mission Systems | $13,003 | $1,408 |
| Space | $9,539 | $943 |
| Total | $52,421 | $5,657 |
Cash Flow Overview
For the nine months ended September 29, 2024, cash flow details are as follows (in millions):
- Net cash provided by operating activities: $5,949
- Net cash used for investing activities: $954
- Net cash used for financing activities: $3,286
How Lockheed Martin Corporation (LMT) Makes Money
Business Segments Overview
Lockheed Martin operates through four primary business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. Each segment contributes to the company's overall revenue through diverse product offerings and services.
Aeronautics
Aeronautics is a significant revenue driver for Lockheed Martin, primarily through the production of advanced military aircraft. In the nine months ended September 29, 2024, Aeronautics generated net sales of $20.6 billion, a 3.8% increase from $19.9 billion in the same period in 2023.
The breakdown of net sales in Aeronautics is as follows:
| Category | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| F-35 Program | $160 million increase | Higher volume on development and sustainment contracts | — |
| F-16 Program | $250 million increase | Due to ramp up on production | — |
| Classified Programs | $185 million increase | Higher volume | — |
Missiles and Fire Control (MFC)
MFC reported net sales of $9.27 billion for the nine months ended September 29, 2024, up from $8.08 billion in 2023, reflecting a 14.8% increase. Key drivers include:
- Production ramp-up on Guided Multiple Launch Rocket Systems (GMLRS)
- Long Range Anti-Ship Missile (LRASM) programs
- Javelin programs
Operating profit for MFC was $1.22 billion, up 6% from $1.15 billion in the previous year.
Rotary and Mission Systems (RMS)
RMS generated net sales of $13 billion in the nine months ended September 29, 2024, compared to $11.5 billion in 2023, marking a 12.8% increase. Major contributions came from:
- Integrated Warfare Systems and Sensors (IWSS) programs
- Sikorsky helicopter programs, including CH-53K and Black Hawk
Operating profit for RMS was $1.41 billion, up from $1.29 billion in the previous year.
Space
The Space segment reported net sales of $9.54 billion for the nine months ended September 29, 2024, a rise from $9.23 billion in 2023. Key areas of growth included:
- Strategic and missile defense programs
- National security space services
Operating profit for the Space segment was $943 million, up from $851 million in the previous year.
Revenue Composition
Lockheed Martin's consolidated net sales for the nine months ended September 29, 2024, totaled $52.42 billion, compared to $48.70 billion in the same period in 2023. The breakdown of revenue sources is as follows:
| Type | Net Sales (2024) | Net Sales (2023) | Percentage of Total Sales (2024) |
|---|---|---|---|
| Products | $43.78 billion | $40.30 billion | 83.5% |
| Services | $8.64 billion | $8.40 billion | 16.5% |
Backlog and Future Revenue
As of September 29, 2024, Lockheed Martin had a backlog of $165.7 billion, with approximately 35% expected to be recognized as revenue over the next 12 months. This backlog reflects the company's robust pipeline of contracts, particularly in defense and aerospace sectors.
Financial Performance Metrics
For the nine months ended September 29, 2024, Lockheed Martin reported:
- Net earnings of $4.81 billion ($20.05 per share)
- Operating profit of $6.32 billion
- Operating margin of 12.1%
These figures illustrate the company's strong financial health and ability to generate profit from its diverse business operations.
Investment and Capital Allocation
Lockheed Martin continues to invest in technology and infrastructure, with capital expenditures totaling $1.1 billion in the first nine months of 2024. The company also repurchased $2.7 billion worth of its shares during this period, reflecting a commitment to returning value to shareholders.
Lockheed Martin Corporation (LMT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Lockheed Martin Corporation (LMT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lockheed Martin Corporation (LMT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lockheed Martin Corporation (LMT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.