On January 23, 2024, Lockheed Martin Corp (LMT, Financial) released its 8-K filing, detailing a robust financial performance for the fourth quarter and the full year of 2023. The world's largest defense contractor, known for its dominance in the Western market for high-end fighter aircraft, particularly the F-35 Joint Strike Fighter program, reported net sales of $18.9 billion for the fourth quarter and $67.6 billion for the year. This represents a slight increase from the previous year's figures, underscoring the company's resilience in a challenging environment.
Lockheed Martin's financial achievements are particularly significant given its role in the Aerospace & Defense industry. The company's record backlog of $160.6 billion is indicative of sustained demand for its advanced defense technology solutions, and the substantial cash returned to shareholders reflects a strong commitment to shareholder value. The robust free cash flow of $6.2 billion also demonstrates the company's operational efficiency and financial health, which are critical for ongoing investment in innovation and strategic initiatives.
Financial Performance Highlights
Lockheed Martin Corp (LMT, Financial) reported a net earnings increase to $1.9 billion in the fourth quarter, up from $1.9 billion in the same period last year, resulting in earnings per share of $7.58, compared to $7.40 per share in the fourth quarter of 2022. For the full year, net earnings rose to $6.9 billion, or $27.55 per share, from $5.7 billion, or $21.66 per share in the previous year. The company's cash from operations reached $2.4 billion in the fourth quarter and $7.9 billion for the full year, with free cash flow of $1.7 billion and $6.2 billion, respectively.
Lockheed Martin's Chairman, President, and CEO Jim Taiclet stated,
Our solid finish to 2023 and full-year results reflect continued strong demand for our all-domain portfolio of advanced defense tech solutions. Backlog reached a record $160.6 billion billion and sales increased 2 percent year-over-year to $67.6 billion,"highlighting the company's strategic positioning and the effectiveness of its investments in research and development, which totaled $1.5 billion in 2023.
Operational and Segment Performance
The company's Aeronautics segment, which includes the F-35 program, saw net sales of $27.474 billion for the year, a 2% increase from 2022. The Missiles and Fire Control segment reported a slight decrease in net sales, while the Rotary and Mission Systems segment saw a 1% increase. The Space segment experienced a 9% increase in net sales, driven by ramp-ups in strategic and missile defense programs.
Lockheed Martin's operational efficiency was also reflected in its segment operating profits, with the Aeronautics segment reporting $2.825 billion for the year, and the Space segment showing a notable 10% increase in operating profit, amounting to $1.158 billion.
Looking Forward
For 2024, Lockheed Martin anticipates continued top-line growth, with net sales projected between $68.5 billion and $70 billion. The company expects to maintain its strong cash flow conversion and deployment, supporting its mid-single digit growth target in free cash flow per share.
Lockheed Martin's performance in 2023, coupled with its strategic outlook for 2024, positions the company as a key player in the Aerospace & Defense industry, with a strong financial foundation to support its continued growth and innovation.
For additional information, visit the company’s website: www.lockheedmartin.com.
Explore the complete 8-K earnings release (here) from Lockheed Martin Corp for further details.
