Lockheed Martin Reports Strong Revenue Growth, Net Sales Reach $17.1B in Q3 2024

Lockheed Martin Corporation reported a solid performance for the third quarter and the first nine months of fiscal year 2024, with net sales reaching $17,104 million for the quarter and $52,421 million for the nine months, marking increases from $16,878 million and $48,697 million, respectively, in the prior year. The growth in revenue was driven by strong demand across various segments, particularly in Missiles and Fire Control (MFC) and Rotary and Mission Systems (RMS).

For the quarter ended September 29, 2024, gross profit was $2,117 million, up from $2,048 million in the same quarter of 2023. Operating profit also increased to $2,140 million from $2,042 million year-over-year. However, net earnings for the quarter decreased to $1,623 million from $1,684 million, reflecting a slight decline in profitability. For the nine-month period, net earnings were $4,809 million, down from $5,054 million in the previous year.

The Aeronautics segment saw a decrease in quarterly net sales to $6,487 million, primarily due to a $480 million drop in the F-35 program, although this was partially offset by increases in other programs. In contrast, MFC reported a strong quarterly sales increase of 8% to $3,175 million, driven by tactical and strike missile programs. RMS also experienced growth, with net sales rising to $4,367 million, an increase of 6%.

Lockheed Martin's total assets increased to $55,520 million as of September 29, 2024, up from $52,456 million at the end of 2023. The company reported cash and cash equivalents of $3,151 million, a significant increase from $1,442 million at the end of 2023. Long-term debt rose to $19,179 million from $17,291 million, reflecting ongoing financing activities.

Strategically, Lockheed Martin completed the sale of its Commercial Engine Solutions business for $170 million and announced plans to acquire Terran Orbital Corporation for approximately $300 million, expected to close in Q4 2024. The company also recorded impairment and severance charges of $87 million in Q2 2024 related to a strategic review of its Sikorsky business.

Lockheed Martin's share repurchase program remains robust, with $2.7 billion spent on repurchasing 5.7 million shares during the nine months ended September 29, 2024. The Board of Directors has authorized an increase in the share repurchase program by $3.0 billion, bringing the total remaining authorization to $10.3 billion as of October 2024. The company also declared a fourth-quarter dividend of $3.30 per share, reflecting a commitment to returning value to shareholders.