Technology
Lockheed Martin Reports Third Quarter 2024 Financial Results
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Net sales of $17.1 billion, an increase of 1% year over yearNet earnings of $1.6 billion, or $6.80 per shareCash from operations of $2.4 billion and free cash flow of $2.1 billion$1.6 billion of cash returned to shareholders through dividends and share repurchases Increased share repurchase authority by $3.0 billion to a total authorization of $10.3 billionIncreased quarterly dividend 5% to $3.30 per share2024 financial outlook increased
BETHESDA, Md., Oct. 22, 2024 /PRNewswire/ — Lockheed Martin Corporation [NYSE: LMT] today reported third quarter 2024 net sales of $17.1 billion, compared to $16.9 billion in the third quarter of 2023. Net earnings in the third quarter of 2024 were $1.6 billion, or $6.80 per share, compared to $1.7 billion, or $6.73 per share, in the third quarter of 2023. Cash from operations was $2.4 billion in the third quarter of 2024, compared to $2.9 billion in the third quarter of 2023. Free cash flow was $2.1 billion in the third quarter of 2024, compared to $2.5 billion in the third quarter of 2023.
“In the third quarter, we advanced our strategic, operational and financial priorities, as demonstrated by our record backlog of more than $165 billion, 48 F-35 deliveries, increased production on missile programs, and $2.1 billion of free cash flow generation,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.
“As a result of our strong year-to-date results and confidence in our near-term performance, we are raising the outlook for full year 2024 sales, segment operating profit, EPS and free cash flow. Looking forward, we continue to make progress on the three key initiatives of our 21st Century Security® strategy of strengthening the resiliency and scalability of our production system, accelerating cutting edge digital and physical technologies into all our mission solutions and our internal operations, and expanding international partnerships to broaden our production capacity and drive more international sales. We are making substantial investments in these areas, while continuing to focus on our fundamental financial objective of driving free cash flow per share growth to generate returns for shareholders. Given our confidence in the company’s ability to deliver on these objectives, our Board has also approved a five percent increase in our quarterly dividend, the 22nd consecutive year of increases.”
Summary Financial Results
The following table presents the company’s summary financial results.
(in millions, except per share data)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Business segment operating profit1
$ 1,870
$ 1,810
$ 5,657
$ 5,347
Unallocated items
FAS/CAS pension operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
660
867
Consolidated operating profit
$ 2,140
$ 2,042
$ 6,317
$ 6,214
Net earnings2
$ 1,623
$ 1,684
$ 4,809
$ 5,054
Diluted earnings per share2
$ 6.80
$ 6.73
$ 20.05
$ 19.97
Cash from operations3
$ 2,438
$ 2,891
$ 5,949
$ 5,555
Capital expenditures
(355)
(364)
(1,103)
(987)
Free cash flow1,3
$ 2,083
$ 2,527
$ 4,846
$ 4,568
1
Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of this news release for more information.
2
Net earnings for the quarter ended Sept. 29, 2024 included $14 million ($10 million, or $0.04 per share, after-tax) of net non-operational charges. See “Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS” table for further details.
3
See the “Cash Flows and Capital Deployment Activities” section of this news release for more information.
F-35 Lots 18-19 Contract Update
The company remains in negotiations with the U.S. Government on the Lots 18-19 production contract. Although negotiations for this contract are in process, the company has been performing work on Lots 18-19 production under initial customer authorization and funding to begin work pursuant to an advance acquisition contract received in the fourth quarter of 2023. The company and its industry team continue work in an effort to meet the customer’s desired aircraft delivery dates for the Lots 18-19 aircraft. The company’s costs began to exceed the advanced acquisition contract value in the third quarter of 2024. As a result, the company was unable to recognize revenue and profit on approximately $400 million of costs incurred on the program in the third quarter of 2024, with at least an additional $300 million of impacts across the supply chain. Additionally, the company was prevented from invoicing and receiving cash of approximately $450 million through the third quarter of 2024. At the end of the third quarter of 2024, the company also had approximately $2 billion in potential termination liability exposure to third parties related to Lots 18-19 (some of which would be recoverable in the unlikely event of a termination). Currently, the company expects to receive contractual authorization and funding on the Lots 18-19 production contract with the U.S. Government and resume invoicing costs incurred and recover sales, profit, and cash in the fourth quarter of 2024. However, until a final agreement is reached, or the U.S. Government otherwise provides additional contractual authorization and funding, the company’s results of operations, cash flows, and financial condition will continue to be negatively impacted, and the impacts could be material and differ from the company’s current 2024 outlook.
2024 Financial Outlook
The following table and other sections of this news release contain forward-looking statements, which are based on the company’s current expectations. Actual results may differ materially from those projected. It is the company’s practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, pension risk transfer transactions or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. For additional factors that may impact the company’s actual results, refer to the “Forward-Looking Statements” section in this news release.
(in millions, except per share data)
Current Update1
July 2024
Net sales
~$71,250
$70,500 – $71,500
Business segment operating profit2
~$7,475
$7,350 – $7,500
Total FAS/CAS pension adjustment
~$1,685
~$1,685
Diluted earnings per share3
~$26.65
$26.10 – $26.60
Cash from operations
~$7,950
$7,750 – $8,050
Capital expenditures
~$1,750
~$1,750
Free cash flow2
~$6,200
$6,000 – $6,300
1
The company’s current 2024 financial outlook is premised on receiving contractual authorization and funding on the F-35 Lots 18-19
production contract in the fourth quarter of 2024.
2
Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of
this news release for more information.
3
Although the company typically does not update its outlook for proposed changes in law, the above includes the effect of IRS Notice 2023-63
confirming that certain expenditures incurred in the performance of cost-type contracts are not subject to capitalization for tax purposes. The
company believes incorporating the clarification from the Notice more accurately reflects its expectations because the Notice describes the tax
treatment of certain expenditures in accordance with the company’s analysis of the Internal Revenue Code.
Cash Flows and Capital Deployment Activities
The decrease in operating and free cash flows in the third quarter of 2024 compared to the same period in 2023 was primarily due to a decrease in working capital (defined as receivables, contract assets, and inventories less accounts payable and contract liabilities), which includes the cash impacts for the lack of additional contractual authorization and funding from the U.S. Government prior to the end of the third quarter of 2024 on the Lots 18-19 contract of the F-35 program.
The company’s cash activities in the third quarter of 2024, included the following:
paying cash dividends of $749 million; andpaying $850 million to repurchase 1.5 million shares.
As previously announced on Oct. 2, 2024, the company’s board authorized the repurchase of its common stock up to an additional $3.0 billion, increasing the total authorization for potential future common stock repurchases to $10.3 billion. The stock repurchase program does not have an expiration date and may be amended or terminated by the board of directors at any time. The amount of shares ultimately purchased and the timing of purchases are at the discretion of management and subject to compliance with applicable law and regulation.
Additionally, on Oct. 2, 2024, the company authorized a fourth quarter dividend payment of $3.30 per share, representing an increase of $0.15 per share over the prior quarterly dividend payment.
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company’s business segments and reconciles these amounts to the company’s consolidated financial results.
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
Aeronautics
$ 6,487
$ 6,717
$ 20,609
$ 19,861
Missiles and Fire Control
3,175
2,939
9,270
8,082
Rotary and Mission Systems
4,367
4,121
13,003
11,528
Space
3,075
3,101
9,539
9,226
Total net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Operating profit
Aeronautics
$ 659
$ 671
$ 2,089
$ 2,064
Missiles and Fire Control
456
398
1,217
1,146
Rotary and Mission Systems
483
482
1,408
1,286
Space
272
259
943
851
Total business segment operating
profit
1,870
1,810
5,657
5,347
Unallocated items
FAS/CAS operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization
expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
660
867
Total consolidated operating profit
$ 2,140
$ 2,042
$ 6,317
$ 6,214
For information on factors impacting comparability of the company’s segment sales, operating profit and operating margins, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2023.
The company’s consolidated net favorable profit booking rate adjustments represented approximately 20% and 19% of total segment operating profit in the quarters ended Sept. 29, 2024 and Sept. 24, 2023. During the quarter ended Sept. 29, 2024, the company recognized losses of $80 million on a classified program at the company’s Aeronautics business segment due to higher than anticipated costs to achieve program objectives.
Aeronautics
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 6,487
$ 6,717
$ 20,609
$ 19,861
Operating profit
659
671
2,089
2,064
Operating margin
10.2 %
10.0 %
10.1 %
10.4 %
Aeronautics’ net sales in the third quarter of 2024 decreased $230 million, or 3%, compared to the same period in 2023. The decrease was primarily attributable to lower net sales of $480 million on the F-35 program due to lower volume on production contracts as a result of delays in receiving additional contractual authorization and funding under the Lots 18-19 contract. This decrease was partially offset by higher net sales of $120 million on the C-130 program primarily due to higher volume on production and sustainment contracts; and $85 million on the F-16 program due to the ramp up on production.
Aeronautics’ operating profit in the third quarter of 2024 decreased $12 million, or 2%, compared to the same period in 2023. The decrease in operating profit was attributable to $25 million from lower volume described above and $20 million from unfavorable contract mix, partially offset by $30 million of higher profit booking rate adjustments. The increase in profit booking rate adjustments included an $85 million favorable profit rate adjustment for a claim associated with a contract to modernize and install new engines in C-5 Galaxy aircraft, partially offset by $80 million of unfavorable profit rate adjustments on a classified program due to higher than anticipated costs to achieve program objectives.
Missiles and Fire Control
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 3,175
$ 2,939
$ 9,270
$ 8,082
Operating profit
456
398
1,217
1,146
Operating margin
14.4 %
13.5 %
13.1 %
14.2 %
MFC’s net sales in the third quarter of 2024 increased $236 million, or 8%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $285 million for tactical and strike missile programs due to production ramp up on Guided Multiple Launch Rocket Systems (GMLRS) and Long Range Anti-Ship Missile (LRASM) programs. This increase was partially offset by lower net sales of $90 million for integrated air and missile defense programs due to lower volume on Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD).
MFC’s operating profit in the third quarter of 2024 increased $58 million, or 15%, compared to the same period in 2023. The increase in operating profit was attributable to $35 million of higher profit booking rate adjustments and $20 million from volume described above. The increase in profit booking rate adjustments was primarily due to higher favorable profit rate adjustments on PAC-3 as a result of better than anticipated cost performance.
Rotary and Mission Systems
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 4,367
$ 4,121
$ 13,003
$ 11,528
Operating profit
483
482
1,408
1,286
Operating margin
11.1 %
11.7 %
10.8 %
11.2 %
RMS’ net sales in the third quarter of 2024 increased $246 million, or 6%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $185 million on integrated warfare systems and sensors (IWSS) programs due to higher volume on radar programs and the Canadian Surface Combatant (CSC) program; and $50 million for Sikorsky helicopter programs due to higher production volume on CH-53K, Seahawk and Black Hawk programs.
RMS’ operating profit in the third quarter of 2024 was comparable to the same period in 2023 as a $25 million increase due to the higher volume described above was offset by $25 million of lower profit booking rate adjustments. The decrease in profit booking rate adjustments was primarily due to a reach-forward loss recognized on a radar program as a result of additional quantity ordering risk identified on fixed-price options.
Space
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 3,075
$ 3,101
$ 9,539
$ 9,226
Operating profit
272
259
943
851
Operating margin
8.8 %
8.4 %
9.9 %
9.2 %
Space’s net sales in the third quarter of 2024 decreased $26 million, or 1%, compared to the same period in 2023. The decrease was primarily attributable to lower net sales of $50 million for commercial civil space due to lower volume on the Orion program, partially offset by higher volume on other space exploration programs. This decrease was partially offset by higher net sales of $25 million for strategic and missile defense programs due to higher volume on reentry programs.
Space’s operating profit in the third quarter of 2024 increased $13 million, or 5%, compared to the same period in 2023. The increase in operating profit was attributable to $25 million related to favorable contract mix across the portfolio, partially offset by $10 million of lower equity earnings driven by lower launch volume from the company’s investment in United Launch Alliance (ULA). Profit booking rate adjustments were comparable.
Total equity earnings (ULA) represented approximately $5 million, or 2% of Space’s operating profit in the third quarter of 2024, compared to approximately $15 million, or 6% for the same period in 2023.
Income Taxes
The company’s effective income tax rate was 15.4% and 13.8% for the quarters ended Sept. 29, 2024 and Sept. 24, 2023. The rate for the third quarter of 2024 was higher than the third quarter of 2023 primarily due to additional research and development tax credits that were claimed for years prior to 2023 reflected in the 2023 rate. The rates for both periods benefited from research and development tax credits, tax deductions for foreign derived intangible income and dividends paid to the company’s defined contribution plans with an employee stock ownership plan feature.
Use of Non-GAAP Financial Measures
This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company’s definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.
Business segment operating profit
Business segment operating profit represents operating profit from the company’s business segments before unallocated income and expense. This measure is used by the company’s senior management in evaluating the performance of its business segments and is a performance goal in the company’s annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.
(in millions)
2024 Outlook
Business segment operating profit (non-GAAP)
~$7,475
FAS/CAS operating adjustment1
~1,625
Intangible asset amortization expense
~(245)
Other, net
~(485)
Consolidated operating profit (GAAP)
~$8,370
1
Reflects the amount by which total CAS pension cost of $1.7 billion, exceeds FAS pension service cost and excludes non-service FAS pension income. Refer to the supplemental table “Selected Financial Data” included in this news release for a detail of the FAS/CAS operating adjustment.
Free cash flow
Free cash flow is cash from operations less capital expenditures. The company’s capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company’s annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and future pension contributions.
Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS
Earnings before income taxes, net earnings and diluted earnings per share (EPS) were impacted by certain non-operational items for all periods. Management believes the presentation of these measures adjusted for the impacts of these non-operational items is useful to investors in understanding the company’s underlying business performance and comparing performance from period to period. The tax effects related to each adjustment that impacted earnings before income taxes are based on a blended tax rate that combines the federal statutory rate of 21% plus an estimated state tax rate.
The table below shows the impact to earnings before income taxes, net earnings and diluted EPS for certain non-operational items:
(in millions, except per share data)
Quarters Ended
Sept. 29,
2024
Sept. 24,
2023
Earnings
Before
Income
Taxes
Net
Earnings
Diluted
EPS
Earnings
Before
Income
Taxes
Net
Earnings
Diluted
EPS
As Reported (GAAP)
$ 1,918
$ 1,623
$ 6.80
$ 1,953
$ 1,684
$ 6.73
Mark-to-market investment losses1
14
10
0.04
14
11
0.04
As Adjusted (Non-GAAP)
$ 1,932
$ 1,633
$ 6.84
$ 1,967
$ 1,695
$ 6.77
1
Includes changes in valuations of the company’s net assets and liabilities for deferred compensation plans and early-stage company investments.
Webcast and Conference Call Information
Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Tuesday, Oct. 22, 2024, at 11:00 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor. The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor.
For additional information, visit the company’s website: www.lockheedmartin.com.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:
the company’s reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company’s ability to negotiate favorable contract terms;budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling and the potential for government shutdowns and changing funding and acquisition priorities;risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program;planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment;the timing of contract awards or delays in contract definitization as well as the timing and customer acceptance of product deliveries and performance milestones;the company’s ability to recover costs under U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts;customer procurement policies that shift risk to contractors, including competitively bid programs with fixed-price development work or follow-on production options or other financial risks; and the impact of investments, cost overruns or other cost pressures and performance issues on fixed price contracts;changes in procurement and other regulations and policies affecting the company’s industry, export of its products, cost allowability or recovery, preferred contract type, and performance and progress payments policy;performance and financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers;economic, industry, business and political conditions including their effects on governmental policy;the impact of inflation and other cost pressures;the impact of pandemics and epidemics on the company’s business and financial results, including supply chain disruptions and delays, employee absences, and program delays;government actions that prevent the sale or delivery of the company’s products (such as delays in approvals for exports requiring Congressional notification);trade policies or sanctions (including Chinese sanctions on the company or its suppliers, teammates or partners, U.S. Government sanctions on Türkish entities and persons, and indirect effects of sanctions on Russia to the company’s supply chain);the company’s success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales;changes in foreign national priorities and foreign government budgets and planned orders, including potential effects from fluctuations in currency exchange rates;the competitive environment for the company’s products and services, including competition from startups and non-traditional defense contractors;the company’s ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;the company’s ability to benefit fully from or adequately protect its intellectual property rights;the company’s ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions;cyber or other security threats or other disruptions faced by the company or its suppliers;the company’s ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions;the accuracy of the company’s estimates and projections;changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension risk transfers and associated settlement charges;realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market;the company’s efforts to increase the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives;the risk of an impairment of the company’s assets, including the potential impairment of goodwill and intangibles;the availability and adequacy of the company’s insurance and indemnities;impacts of climate change and compliance with laws, regulations, policies, and customer requirements in response to climate change concerns;changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; andthe outcome of legal proceedings, bid protests, environmental remediation efforts, audits, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems.
These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the company’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.
The company’s actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its filing. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.
Lockheed Martin Corporation
Consolidated Statements of Earnings1
(unaudited; in millions, except per share data)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Cost of sales
(14,987)
(14,830)
(46,181)
(42,513)
Gross profit
2,117
2,048
6,240
6,184
Other income (expense), net
23
(6)
77
30
Operating profit
2,140
2,042
6,317
6,214
Interest expense
(256)
(237)
(772)
(662)
Non-service FAS pension income
16
111
47
332
Other non-operating income, net
18
37
109
69
Earnings before income taxes
1,918
1,953
5,701
5,953
Income tax expense
(295)
(269)
(892)
(899)
Net earnings
$ 1,623
$ 1,684
$ 4,809
$ 5,054
Effective tax rate
15.4 %
13.8 %
15.6 %
15.1 %
Earnings per common share
Basic
$ 6.83
$ 6.75
$ 20.12
$ 20.04
Diluted
$ 6.80
$ 6.73
$ 20.05
$ 19.97
Weighted average shares outstanding
Basic
237.5
249.3
239.0
252.2
Diluted
238.6
250.2
239.9
253.1
Common shares reported in stockholders’
equity at end of period
236
247
1
The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on Sept. 29, for the third quarter of 2024 and Sept. 24, for the third quarter of 2023. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company’s fiscal year ends on Dec. 31.
Lockheed Martin Corporation
Business Segment Summary Operating Results
(unaudited; in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
%
Change
Sept. 29,
2024
Sept. 24,
2023
%
Change
Net sales
Aeronautics
$ 6,487
$ 6,717
(3 %)
$ 20,609
$ 19,861
4 %
Missiles and Fire Control
3,175
2,939
8 %
9,270
8,082
15 %
Rotary and Mission Systems
4,367
4,121
6 %
13,003
11,528
13 %
Space
3,075
3,101
(1 %)
9,539
9,226
3 %
Total net sales
$ 17,104
$ 16,878
1 %
$ 52,421
$ 48,697
8 %
Operating profit
Aeronautics
$ 659
$ 671
(2 %)
$ 2,089
$ 2,064
1 %
Missiles and Fire Control
456
398
15 %
1,217
1,146
6 %
Rotary and Mission Systems
483
482
— %
1,408
1,286
9 %
Space
272
259
5 %
943
851
11 %
Total business segment operating
profit
1,870
1,810
3 %
5,657
5,347
6 %
Unallocated items
FAS/CAS operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
16 %
660
867
(24 %)
Total consolidated operating
profit
$ 2,140
$ 2,042
5 %
$ 6,317
$ 6,214
2 %
Operating margin
Aeronautics
10.2 %
10.0 %
10.1 %
10.4 %
Missiles and Fire Control
14.4 %
13.5 %
13.1 %
14.2 %
Rotary and Mission Systems
11.1 %
11.7 %
10.8 %
11.2 %
Space
8.8 %
8.4 %
9.9 %
9.2 %
Total business segment operating
margin
10.9 %
10.7 %
10.8 %
11.0 %
Total consolidated operating
margin
12.5 %
12.1 %
12.1 %
12.8 %
Lockheed Martin Corporation
Selected Financial Data
(unaudited; in millions)
2024
Outlook
2023
Actual
Total FAS income CAS cost
FAS pension income
$ —
$ 378
Less: CAS pension cost
1,685
1,725
Total FAS/CAS pension adjustment
$ 1,685
$ 2,103
Service and non-service cost reconciliation
FAS pension service cost
$ (60)
$ (65)
Less: CAS pension cost
1,685
1,725
Total FAS/CAS pension operating adjustment
1,625
1,660
Non-service FAS pension income
60
443
Total FAS/CAS pension adjustment
$ 1,685
$ 2,103
Lockheed Martin Corporation
Consolidated Balance Sheets
(unaudited, in millions, except par value)
Sept. 29,
2024
Dec. 31,
2023
Assets
Current assets
Cash and cash equivalents
$ 3,151
$ 1,442
Receivables, net
2,141
2,132
Contract assets
14,224
13,183
Inventories
3,234
3,132
Other current assets
461
632
Total current assets
23,211
20,521
Property, plant and equipment, net
8,454
8,370
Goodwill
10,800
10,799
Intangible assets, net
1,979
2,212
Deferred income taxes
3,105
2,953
Other noncurrent assets
7,971
7,601
Total assets
$ 55,520
$ 52,456
Liabilities and equity
Current liabilities
Accounts payable
$ 3,221
$ 2,312
Salaries, benefits and payroll taxes
3,076
3,133
Contract liabilities
9,051
9,190
Current maturities of long-term debt
142
168
Other current liabilities
2,320
2,134
Total current liabilities
17,810
16,937
Long-term debt, net
19,179
17,291
Accrued pension liabilities
6,077
6,162
Other noncurrent liabilities
5,254
5,231
Total liabilities
48,320
45,621
Stockholders’ equity
Common stock, $1 par value per share
236
240
Additional paid-in capital
—
—
Retained earnings
15,657
15,398
Accumulated other comprehensive loss
(8,693)
(8,803)
Total stockholders’ equity
7,200
6,835
Total liabilities and equity
$ 55,520
$ 52,456
Lockheed Martin Corporation
Consolidated Statements of Cash Flows
(unaudited; in millions)
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Operating activities
Net earnings
$ 4,809
$ 5,054
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization
1,100
1,009
Stock-based compensation
229
221
Deferred income taxes
(174)
(395)
Impairment and severance charges
87
—
Changes in assets and liabilities
Receivables, net
(9)
100
Contract assets
(1,041)
(1,287)
Inventories
(102)
(224)
Accounts payable
970
1,731
Contract liabilities
(139)
(552)
Income taxes
66
(81)
Qualified defined benefit pension plans
(2)
(283)
Other, net
155
262
Net cash provided by operating activities
5,949
5,555
Investing activities
Capital expenditures
(1,103)
(987)
Other, net
149
(4)
Net cash used for investing activities
(954)
(991)
Financing activities
Issuance of long-term debt, net of related costs
1,980
1,975
Repayments of long-term debt
(168)
(115)
Repurchases of common stock
(2,700)
(3,000)
Dividends paid
(2,281)
(2,289)
Other, net
(117)
(131)
Net cash used for financing activities
(3,286)
(3,560)
Net change in cash and cash equivalents
1,709
1,004
Cash and cash equivalents at beginning of period
1,442
2,547
Cash and cash equivalents at end of period
$ 3,151
$ 3,551
Lockheed Martin Corporation
Other Financial and Operating Information
(unaudited; in millions, except for aircraft deliveries and weeks)
Backlog
Sept. 29,
2024
Dec. 31,
2023
Aeronautics
$ 50,988
$ 60,156
Missiles and Fire Control
40,722
32,229
Rotary and Mission Systems
37,571
37,726
Space
36,412
30,456
Total backlog
$ 165,693
$ 160,567
Quarters Ended
Nine Months Ended
Aircraft Deliveries
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
F-35
48
30
48
80
F-16
2
1
9
2
C-130J
4
7
13
13
Government helicopter programs
24
3
47
24
Commercial helicopter programs
—
3
—
4
International military helicopter programs
4
1
9
1
Number of Weeks in Reporting Period1
2024
2023
First quarter
13
12
Second quarter
13
13
Third quarter
13
13
Fourth quarter
13
14
1
Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods.
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SOURCE Lockheed Martin Corporation
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Complete Blood Count Test with At-Home Sample Collection is Available for Direct-to-Patient Biopharma Programs through ixlayer’s ixEngage
Published
17 mins agoon
October 22, 2024By
ixEngage removes barriers to care by accelerating pre-treatment and routine CBC tests used for hundreds of conditions, including asthma, heart disease and kidney disease
SAN FRANCISCO, Oct. 22, 2024 /PRNewswire/ — ixlayer, the leading cloud-based platform powering an end-to-end direct-to-patient (DTP) healthcare experience, announced availability of a Complete Blood Count (CBC) test with at-home sample collection. This move supports biopharma partners who want to accelerate virtual care and reduce barriers to care for patients. Available through ixEngage, ixlayer’s DTP biopharma solution, biopharma companies can develop programs to include a CBC test, specialty and PCP telehealth consultations and prescription delivery. Top U.S. biopharma companies have already signed on to implement ixEngage’s remote CBC testing, with plans to make their programs publicly available as early as Q1 2025.
Remote CBC testing offers unprecedented ease and access to vital healthcare previously only available in clinical settings. Cutting-edge sample collection devices allow patients to use a simple-to-administer blood sample collection kit from the comfort of their home. Advanced and proprietary technology in ixEngage ensures secure data transfer of lab results to patients and healthcare providers. And, this digital connection to care ensures that patients understand their CBC results through access to physicians who will discuss results and treatment options. This end-to-end solution supports biopharma’s initiatives for patient-centered care, and 83% of U.S. physicians who believe at-home testing accelerates diagnosis and improves health outcomes, according to a recent survey.
“With the ability to collect at-home CBC samples, patients will now have more convenient access to life-saving diagnostics, care and treatment,” said Dr. Bernard Esquivel, MD and PhD, Chief Medical Officer at ixlayer. “This advancement can allow physicians regular insight to a patient’s biomarkers resulting in personalized treatment plans, reducing hospitalizations, and ensuring timely interventions, particularly for those with limited access to healthcare facilities.”
This capability simplifies the process of obtaining essential medications, such as biologics which require a CBC test prior to prescribing. By eliminating the need for in-person lab visits, patients and their physicians can quickly access CBC test results and shorten the path to treatment. CBC testing is also essential for diagnosing and managing conditions like asthma, autoimmune diseases, certain cancers, chronic kidney disease, and heart disease. With ixEngage, biopharma can provide a seamless and integrated patient journey leading to faster, data-driven treatment decisions and improved outcomes.
It’s known that 70% of clinical decisions rely on lab testing, yet 40% of blood lab prescriptions go unfilled by traditional means. ixEngage with remote CBC testing removes lab appointment bottlenecks from the patient journey.
“Remote CBC testing as part of ixEngage accelerates patient-centered healthcare,” explained Pouria Sanae, CEO and co-founder of ixlayer. “At ixlayer, we continually merge medical and technological innovations to shift the healthcare paradigm from reactive to proactive care so patients can get the care they want and need when it’s convenient for their schedules.”
About ixlayer
ixlayer [pronounced: I-X-layer] is the leading provider of cloud-based platforms that power a seamless, end-to-end direct-to-patient healthcare experience. The name reflects our core strength: “i” for robust data and technology infrastructure and “x” for exceptional user experience. ixEngage by ixlayer seamlessly integrates with all healthcare ecosystem partners, connecting biopharma with patients in a user-centric way. This proprietary technology accelerates the path to diagnoses, supports optimal care, drives operational efficiency, and improves health equity and outcomes for all. To date, ixlayer has activated over four million patient care journeys across more than 1,100 programs, simplifying the complex web of healthcare. Learn more at www.ixlayer.com.
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SOURCE ixlayer
Technology
Six Rubin and Rudman Partners Named to 2025 Lawdragon 500 Leading Family Lawyers in America
Published
17 mins agoon
October 22, 2024By
BOSTON, Oct. 22, 2024 /PRNewswire/ — Rubin and Rudman partners Marlee S. Cowan, Lisa M. Cukier, Susan B. Grandis, David M. Friedman, Jared D. Spinelli, and Meredith A. Stratford have been selected for inclusion in the 2025 Lawdragon 500 Leading Family Lawyers in America for their expertise in high-net worth divorce, trusts and estate planning, and probate litigation.
Marlee S. Cowan is a partner in the firm’s Trusts and Estates and Litigation departments. She focuses her practice on probate litigation, guardianships, conservatorships, will contests, trust disputes, breaches of fiduciary duty, and estate and trust administration. She is skilled in employing creative tactics to help guide clients through every step of the process – from delicate negotiations to trial. She was named to Boston Magazine’s Top Trusts and Estates Lawyers List for the past two consecutive years. She received her J.D. from New England Law and her B.A. from the University of California Berkeley.
Lisa M. Cukier is a partner in the firm’s Family Law, Litigation, and Trusts and Estates departments. She concentrates her practice on complex trust and estate litigation, high-asset family law matters, and family disputes, with a focus on cases involving diminishing capacity, such as undue influence, financial exploitation, and guardianship and conservatorship interventions. She is renowned for navigating complex legal matters with discretion and precision and seamlessly integrating legal expertise with bespoke client care. She has been ranked in The Best Lawyers in America for the past 14 years and was selected to Massachusetts Lawyers Weekly’s 2024 Circle of Excellence, among other prestigious awards. She received her J.D. from Suffolk University Law School and her B.A. from Northeastern University.
Susan B. Grandis is a partner and chair of the firm’s Family Law department. With over 30 years of legal experience, she focuses her practice on resolving domestic relations matters and litigating complex cases involving trusts, estates, and business interests, offering her clients strategic advantages in negotiating marital agreements and addressing estate planning concerns. She is a strong advocate who takes pride in finding creative and practical solutions for those clients seeking to achieve reasonable and cost-effective results. She has been named to Boston Magazine’s Top Divorce and Family Lawyers List since 2021. She received her J.D. from the University of Virginia School of Law and her B.A., magna cum laude, from the University of Massachusetts Amherst.
David M. Friedman is a partner in the firm’s Family Law department. He focuses his practice on representing and counseling clients in all areas of family law, including divorce, post-divorce modification, and enforcement (contempt) proceedings, as well as family law mediation and conciliation. His cases frequently involve closely held businesses, valuation of commercial and residential real estate, trust interests and inheritance, and complex compensation structures (including equity compensation plans). He has been ranked in The Best Lawyers in America since 2019 and named to Boston Magazine’s Top Divorce and Family Lawyers List since 2021, among other prestigious awards. He received his J.D. from Suffolk University Law School and a B.A. from Colby College.
Jared D. Spinelli is a partner in the firm’s Family Law department, a member of the firm’s Executive Committee, and chair of the firm’s Pro Bono Committee. He concentrates his practice on all aspects of complex domestic relations law, including divorce, child custody and child support, alimony, paternity, asset valuation and division, and modification and contempt actions. In addition to his work at the trial court level, Spinelli is experienced in drafting and filing appellate briefs and has argued before the Massachusetts Appeals Court on a wide range of divorce issues. He has been ranked in The Best Lawyers in America in 2024-2025, selected to the Massachusetts Rising Stars List since 2018, and named to Boston Magazine’s Top Divorce and Family Lawyers List since 2021. He received his J.D. from Suffolk University Law School and a B.S. from Northeastern University.
Meredith A. Stratford is a partner in the firm’s Family Law, Litigation, and Trusts and Estates departments. In her trusts, estates and probate practice, she prepares comprehensive and highly personalized estate plans designed to preserve wealth, minimize estate tax, and provide for beneficiaries with special needs. In litigation and family law, her practice is focused on all aspects of complex domestic relations matters, including divorce, child custody, child support, alimony, adoption, contempt, paternity, grandparent visitation, removal, and guardianship cases. She has been ranked in The Best Lawyers in America and selected to the Massachusetts Super Lawyers List since 2023, as well as Boston Magazine’s Top Divorce and Family Lawyers List since 2022.
About Rubin and Rudman LLP
Founded over a century ago, Rubin and Rudman is a full-service law firm with over 90 lawyers in Boston, Massachusetts. With a diverse mix of practices, Rubin and Rudman serves national and international companies, including large public companies and closely held businesses; real estate developers; biotechnology, pharmaceutical and medical device makers; regulated industries, public entities and municipalities; insurance companies and their insureds; educational and other institutions; non-profit organizations; families and high net worth individuals. Rubin and Rudman also has suburban offices in Andover and Woburn, Massachusetts. Web: www.rubinrudman.com.
Contact:
Amy Blumenthal
Kristen Weller
Blumenthal & Associates
Chief Marketing & Growth Officer
617.879.1511
617.330.7189
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SOURCE Rubin and Rudman
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Inc. Names Apollo.io a 2024 Power Partner Award Winner
Published
17 mins agoon
October 22, 2024By
The annual list recognizes the top B2B companies in the country that cater to SMBs and have demonstrated a proven track record of supporting entrepreneurs and helping companies grow
SAN FRANCISCO, Oct. 22, 2024 /PRNewswire/ — Apollo.io, a leading go-to-market (GTM) solution for sales and marketing teams, today announced it has been named one of Inc.’s 2024 Power Partners Award Winners. The third annual Power Partner Award is presented by Inc., the leading media brand and playbook for the entrepreneurs and business leaders shaping our future, honoring B2B organizations across the country that have proven track records for supporting entrepreneurs and helping startups grow. Apollo is proud to be recognized as one of the best B2B providers in the CRM – Sales Force Automation category, helping small and medium-sized businesses (SMBs) manage customer data, track customer interactions, compile business information, and automate sales. Apollo is featured alongside 359 other highly acclaimed business leaders, including Pipedrive, Slack, and HubSpot.
The Power Partner Award recognizes the highest caliber of B2B partners who support entrepreneurs in critical business areas, such as hiring, compliance, infrastructure development, cloud migration, and fundraising. This frees up founders to focus on their core missions. Inc.’s methodology includes anonymous client surveys and qualitative ratings, online sentiment analysis from Inc.’s data partner, Meltwater, and research and analysis of data by Inc. reporters. Every company on the Inc. Power Partner award list received top marks from clients for being instrumental in helping leadership navigate the dynamic world of startups.
“This is our definitive listing of vendors and suppliers who have demonstrated excellence in serving small- and midsize customers,” says Inc. editor in chief Mike Hofman. “As part of the vetting process, our team of editors, researchers and reporters gathered information on companies’ products and services, assessed their reputation as captured in online comments and forums, and collected customer testimonials to ensure that the sales pitch matches the actual client experience. In every case, we spoke to founders like you who were happy to attest to a vendor’s genuine commitment to a mutually beneficial business partnership. We’re happy to be the conduit for that positive word of mouth.”
Apollo solves a critical need by consolidating the entire sales tech stack, providing sales teams with access to verified contact data for over 275 million B2B contacts, along with AI-driven intelligence tools to engage and convert these contacts—all in one unified platform. Apollo is one of the fastest-growing companies in SaaS currently supporting over 500,000 companies, 80,000+ paying customers, and millions of users globally, growing revenue by over 14x since the beginning of 2021. The company is the No. 1 ranked best sales intelligence software for small businesses on G2, and has earned No. 1 rankings in the SMB categories for lead capture, marketing account intelligence, and lead intelligence. Apollo is also ranked No. 3 for Best Sales Products on G2’s 2024 Best Software Awards.
“Go-to-market is really hard. The process is complex, lacks intelligent guidance, and involves slow, convoluted workflows where the available tools today cater primarily to large enterprises,” said Tim Zheng, Apollo’s Co-founder and CEO. “Apollo was built from the ground up to solve these problems. The platform simplifies world-class go-to-market strategies, making them intelligent and accessible to the underserved market of 330 million global small businesses. Business owners can replace multiple sales and marketing tools with Apollo, reducing costs without sacrificing modern workflows that provide a competitive edge. We are honored to be recognized by Inc. as a partner to small businesses, supporting their growth and accelerating their revenue.”
To learn more about Apollo and to sign up for free, visit www.apollo.io. To view the complete list of 2024 Inc. Power Partner Award Winners, visit: https://www.inc.com/power-partner-awards/2024.
The November 2024 Issue of Inc. magazine is available online now at https://www.inc.com/magazine and will be on newsstands beginning October 29, 2024.
About Apollo.io
Apollo.io is the leading go-to-market solution for revenue teams, trusted by over 500,000 companies and millions of users globally, from rapidly growing startups to some of the world’s largest enterprises. The company is one of the fastest growing companies in SaaS, raising approximately $250 million to date and valued at $1.6 billion. Apollo.io provides sales and marketing teams with easy access to verified contact data for over 275 million B2B contacts, along with tools to engage and convert these contacts in one unified platform. By helping revenue professionals find the most accurate contact information and automating the outreach process, Apollo.io turns prospects into customers.
About Inc.
Inc. is the leading media brand and playbook for the entrepreneurs and business leaders shaping our future. Through its journalism, Inc. aims to inform, educate, and elevate the profile of our community: the risk-takers, the innovators, and the ultra-driven go-getters who are creating our future. Inc.’s award-winning work achieves a monthly brand footprint of more than 40 million across a variety of channels, including events, digital, print, video, podcasts, newsletters, and social media. Its proprietary Inc. 5000 list, produced every year since its launch as the Inc. 100 in 1982, analyzes company data to rank the fastest-growing privately held businesses in the United States. The recognition that comes with inclusion on this and other prestigious Inc. lists, such as Female Founders and Power Partners, gives the founders of top businesses the opportunity to engage with an exclusive community of their peers, and credibility that helps them drive sales and recruit talent. For more information, visit www.inc.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/inc-names-apolloio-a-2024-power-partner-award-winner-302283476.html
SOURCE Apollo.io
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