Lockheed Martin (LMT) Q4 2024 earnings summary

Executive summary

• Achieved 5% year-over-year sales growth in 2024, reaching $71.0B, with record backlog of $176.0B, reflecting strong global demand for defense technology.

• All four business areas saw backlog growth and book-to-bill ratios above one.

• F-35 program momentum, increased technology integration, and delivery of 110 aircraft in 2024 were key drivers; Romania became the 20th F-35 customer.

• Returned over 100% of free cash flow to shareholders through $3.7B in share repurchases and $3.1B in dividends, totaling $6.8B.

• Net earnings for 2024 were $5.3B ($22.31/share), down from $6.9B ($27.55/share) in 2023, impacted by $2.0B in classified program losses.

Financial highlights

• 2024 sales: $71.0B–$71.2B, up 5% year-over-year; adjusted segment operating profit: $7.9B; adjusted EPS: $27.99.

• Q4 2024 sales: $18.6B–$18.8B; adjusted segment operating profit: $2.1B; adjusted EPS: $7.45.

• Free cash flow for 2024: $5.3B–$6.1B, including pension pre-funding; $440M–$1.3B in Q4.

• Book-to-bill ratio: 1.2x for FY 2024, 1.6x in Q4.

• Significant non-recurring items: $1.8B–$2.0B in classified program charges, C-5 claim resolution, and $990M pension pre-funding.

Outlook and guidance

• 2025 sales expected at $73.75B–$74.75B (+4%–5% year-over-year), with MFC leading at 8% growth.

• Segment operating margins to return to ~11% in 2025, earlier than planned.

• Free cash flow projected at $6.6B–$6.8B, with double-digit growth in free cash flow per share.

• Adjusted EPS guidance: $27.00–$27.30; EPS expected to decline slightly due to pension adjustments and higher interest expense.

• 2025 guidance assumes timely appropriations and no government shutdown.