Lockheed Martin(LMT) - 2025 Q1 - Quarterly Results

Financial Performance - Sales for Q1 2025 were $18.0 billion, a 4% increase from$ 17.2 billion in Q1 2024[3] - Net earnings for Q1 2025 were $1.7 billion, or$ 7.28 per share, compared to $1.5 billion, or$ 6.39 per share in Q1 2024[3] - Business segment operating profit for Q1 2025 was $2,085 million, up 19% from$ 1,745 million in Q1 2024[43] - The consolidated operating profit for Q1 2025 was $2,372 million, representing a 17% increase compared to$ 2,029 million in Q1 2024[41] - The total consolidated operating margin improved to 13.2% in Q1 2025 from 11.8% in Q1 2024[43] - Net earnings for the quarter ended March 30, 2025, were $1,712 million, up from$ 1,545 million for the same period in 2024, representing an increase of 10.8%[45] Cash Flow and Capital Expenditures - Cash from operations was $1.4 billion in Q1 2025, down from$ 1.6 billion in Q1 2024; free cash flow decreased to $955 million from$ 1.3 billion[8] - The company returned $1.5 billion to shareholders through dividends and share repurchases in Q1 2025[5] - Free cash flow is utilized to evaluate business performance and liquidity, indicating cash available for stockholders and investments[33] - Capital expenditures for the quarter were$ 454 million, compared to $378 million in the same quarter of 2024, an increase of 20.1%[45] - Cash and cash equivalents at the end of the period were$ 1,803 million, down from $2,483 million at the beginning of the period, a decrease of 27.4%[45] Sales by Segment - Aeronautics segment sales increased by$ 212 million, or 3%, driven by a $215 million increase in F-35 program sales[17] - Missiles and Fire Control segment sales rose by$ 380 million, or 13%, primarily due to a $370 million increase in tactical and strike missile programs[20] - Rotary and Mission Systems segment sales increased by$ 240 million, or 6%, attributed to higher volume in integrated warfare systems and Sikorsky helicopter programs[23] - Space segment sales decreased by $64 million, or 2%, mainly due to lower sales on national security space programs[25] - Aeronautics segment sales increased by 3% to$ 7,057 million in Q1 2025, while Missiles and Fire Control saw a 13% increase to $3,373 million[43] Financial Outlook - The 2025 financial outlook projects sales between$ 73.75 billion and $74.75 billion, with diluted earnings per share expected to be around$ 27.00 to $27.30[12] - The company projects a business segment operating profit (non-GAAP) of approximately$ 8,100 million to $8,200 million for 2025[32] Tax and Equity - The effective income tax rate was 15.9% for Q1 2025, slightly up from 15.8% in Q1 2024[29] - The effective tax rate for Q1 2025 was 15.9%, slightly up from 15.8% in Q1 2024[41] - The total stockholders' equity increased to$ 6,683 million as of March 30, 2025, compared to $6,333 million at December 31, 2024, an increase of 5.5%[44] Debt and Backlog - Long-term debt decreased to$ 18,661 million as of March 30, 2025, from $19,627 million at December 31, 2024, a reduction of 4.9%[44] - The total backlog decreased to$ 172,974 million as of March 30, 2025, from $176,040 million at December 31, 2024, a decline of 1.2%[47] Share Repurchase and Deliveries - The company repurchased$ 750 million of common stock during the quarter, compared to $1,000 million in the same quarter of 2024[45] - The company delivered 47 F-35 aircraft in the first quarter of 2025, with no deliveries in the same quarter of 2024[47] Pension Expense - The FAS pension expense for 2025 is projected to be$ (445) million, a significant decrease from $2 million in 2024[46] Risks and Contracts - The company emphasizes the importance of government contracts and the associated risks in its forward-looking statements[37] Assets - Total assets increased to$ 56,669 million as of March 30, 2025, compared to $55,617 million at December 31, 2024, reflecting a growth of 1.9%[44]