Lockheed Martin (LMT) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached $18.1 billion, up 9% year-over-year, with growth across all business segments and net earnings of $1.6 billion ($6.85 per share).

• Backlog remains robust at $158.3 billion, over twice annual revenue, with strong international demand and new orders in Israel, Greece, Poland, and Spain.

• F-35 deliveries resumed, including the first TR-3 aircraft, and significant advancements in AIR6500, NGI, and Skunk Works AI.

• 2024 outlook raised for sales, profit, and EPS, reflecting improved performance and confidence in execution.

• Continued investment in digital technologies, AI, hypersonics, and transformation initiatives to enhance mission effectiveness.

Financial highlights

• Q2 2024 net sales were $18.1B (+9% YoY), with segment operating profit at $2.1B and operating margin at 11.3%.

• GAAP EPS was $6.85, with free cash flow of $1.5B for Q2 and $2.8B year-to-date.

• Over $1.6B returned to shareholders in Q2 2024 via dividends and share repurchases.

• Book-to-bill ratio was 0.97x for Q2, indicating strong order intake.

• Gross margin for Q2 2024 was 11.8%, compared to 12.5% in Q2 2023.

Outlook and guidance

• 2024 sales outlook raised to $70.5–$71.5 billion, with segment operating profit guidance at $7.35–$7.5 billion and EPS at $26.10–$26.60.

• Free cash flow guidance held at $6–$6.3 billion, with share repurchases planned at ~$4.0B.

• F-35 deliveries for 2024 expected in the range of 75–110 aircraft.

• Backlog expected to grow in 2024, supporting future sales visibility.

• Management expects sufficient liquidity and cash flow to meet operational and capital needs.