Lockheed Martin(US:LMT)2025-01-28 21:12Financial Performance - For the year ended December 31, 2024, Lockheed Martin Corporation recorded net sales of $71.0 billion, an increase from $67.6 billion in 2023, representing a growth of approximately 3.5%[321]. - The total cost of sales for 2024 was $64.1 billion, up from $59.1 billion in 2023, leading to a gross profit of $6.9 billion compared to $8.5 billion in the previous year, indicating a decline of about 18.2%[332]. - Net earnings for 2024 were $5.3 billion, down from $6.9 billion in 2023, reflecting a decrease of approximately 23.0%[332]. - The diluted earnings per share for 2024 were $22.31, compared to $27.55 in 2023, marking a decline of about 19.1%[332]. - The comprehensive income for 2024 was $5.7 billion, a decrease from $6.1 billion in 2023, representing a decline of about 7.9%[334]. - Operating profit for 2024 was $7,013 million, down 17.5% from $8,507 million in 2023[418]. - Total net sales for 2024 reached $71,043 million, an increase of 5.8% from $67,571 million in 2023[418]. Assets and Liabilities - As of December 31, 2024, the total assets of Lockheed Martin Corporation amounted to $55.6 billion, an increase from $52.5 billion in 2023, representing a growth of approximately 6.0%[337]. - The aggregate obligation for qualified defined benefit pension plans was $27.2 billion, exceeding the fair value of plan assets of $22.4 billion, resulting in a net unfunded obligation of $4.8 billion[326]. - The company’s total debt increased to $21,557 million in 2024 from $18,723 million in 2023, representing a growth of approximately 9.8%[447]. - Long-term debt, net, rose to $19,627 million in 2024 compared to $17,291 million in 2023, an increase of about 13.6%[447]. - The company reported a significant increase in cash and cash equivalents, rising to $2.5 billion in 2024 from $1.4 billion in 2023, an increase of approximately 72.3%[337]. Revenue Sources - The F-35 program accounts for 26% of total consolidated net sales and 65% of Aeronautics' net sales in 2024[19]. - The U.S. Government accounted for $52,044 million of total net sales in 2024, which is about 73.3% of total sales, compared to $49,423 million in 2023[423]. - Aeronautics segment net sales increased to $28,618 million in 2024 from $27,474 million in 2023, a growth of 4.1%[418]. - Missiles and Fire Control segment net sales rose to $12,682 million in 2024, up 12.0% from $11,253 million in 2023[418]. - Rotary and Mission Systems segment net sales increased to $17,264 million in 2024, a rise of 6.3% compared to $16,239 million in 2023[418]. - Space segment net sales decreased slightly to $12,479 million in 2024 from $12,605 million in 2023, a decline of 1.0%[418]. Workforce and Employment - The company hired nearly 9,200 employees in 2024, including 3,900 college hires and interns during the 2023-24 academic year[29]. - Approximately 93% of the workforce is located in the U.S., with 19% covered by collective bargaining agreements[28]. - The company has a hybrid workforce model that supports flexible working arrangements, aiding in talent recruitment and retention[30]. Challenges and Risks - The company is facing supply chain challenges, including parts shortages and pricing escalations, which are expected to continue into 2025[25]. - The company is involved in environmental remediation at current and former facilities, but these costs are expected to be allowable under government contracts[43]. - The company actively manages counterparty exposure to minimize potential impacts from adverse developments with credit providers[310]. Investments and Acquisitions - The acquisition of Terran Orbital Corporation was completed for a total consideration of $314 million, with $231 million paid in cash[349]. - Goodwill recorded from the acquisition of Terran Orbital was $298 million, reflecting the excess purchase price over the fair value of net assets acquired[349]. - The company maintains investments in a trust totaling $1.8 billion as of December 31, 2024, which are reflected at fair value on the consolidated balance sheet[315]. Research and Development - Company-funded R&D costs charged to cost of sales totaled $1.6 billion, $1.5 billion, and $1.7 billion in 2024, 2023, and 2022 respectively[380]. - The company has various development programs for new and upgraded products, which are subject to significant variability in estimates of cost and time required to complete[372]. Environmental and Regulatory Compliance - The company is subject to various U.S. and international regulations affecting its operations, including environmental protection laws and climate change-related regulations[43][44]. - The company projects costs and recovery of environmental costs over approximately 20 years, with significant future implications for net sales and cost of sales[408]. Debt and Financing - The company issued $2,970 million in long-term debt, an increase from $1,975 million in 2023[341]. - The company entered into a $3.0 billion revolving credit facility, extendable to $3.5 billion, with no borrowings outstanding as of December 31, 2024[448]. - The company is in compliance with all covenants in its revolving credit agreement and debt agreements as of December 31, 2024[448].