Lockheed Martin Corporation (LMT) Q4 2023 Earnings Call Transcript Summary

By / / Lockheed Martin

The following is a summary of the Lockheed Martin Corporation (LMT) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Lockheed Martin reported strong sales that matched the previous year’s Q4 results, exceeding expectations by $1 billion and marking a 2.5% growth rate for the full year.
  • The firm reported a 2% annual growth in GAAP EPS, with an adjusted EPS of $27.82.
  • The overall segment operating profit fell by 1% compared to the previous year, despite the increased sales volume.
  • For the full year, the company returned $3.8 billion in dividends and share repurchases, culminating in returns of over $9 billion.
  • Lockheed Martin predicts its 2024 sales to be between $68.5 billion and $70 billion, with expected free cash flow in the region of $6 billion and $6.3 billion.

Business Progress:

  • Lockheed Martin reported a surge in demand that resulted in a backlog increase of 7% to a record of $161 billion, allowing the firm to experience top-line growth earlier than initially projected.
  • The company is making constant improvements to its product line, with notable products being the F-35, F-16, PAC-3, JASSM, among others.
  • The company is adopting various anti-fragility measures to enhance the resilience of its supply chain, while also building partnerships with commercial technology entities to improve the defence industry base.
  • Lockheed Martin has also customized its operations to align with shareholders’ interests and is investing in integrated deterrence capabilities to align with the broader 21st-century security strategy.
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