Lockheed Martin Reports Mixed Results

Core Insights - Lockheed Martin reported mixed Q4 2024 earnings, with earnings per share (EPS) of $2.22, significantly below the estimated $6.62, primarily due to losses in classified programs [2][7] - Total revenue for the quarter was $18.6 billion, slightly missing analysts' expectations of $18.87 billion [2][4] - The company achieved a record backlog of $176 billion, indicating strong future demand [3][10] Financial Performance - EPS decreased by 70.7% year-over-year from $7.58 in Q4 2023 to $2.22 in Q4 2024 [4] - Revenue fell by 1.3% year-over-year from $18.9 billion in Q4 2023 to $18.6 billion in Q4 2024 [4] - Free cash flow dropped to $441 million from nearly $1.7 billion a year earlier, a decline of 73.5% [4][9] - Net earnings decreased by 71.8% year-over-year, from $1.866 billion in Q4 2023 to $527 million in Q4 2024 [4] Business Segments - The Aeronautics segment saw a 5% increase in sales, but operating profits fell by 43% due to challenges in classified programs [8] - The Missiles and Fire Control segment experienced an 8% rise in net sales, yet operating profits turned into a loss of $804 million from a previous profit of $395 million [8] Strategic Focus - Lockheed Martin is concentrating on classified programs and advancements in hypersonics technology, aiming to transition these projects into production phases for long-term growth [6][11] - The company is projecting net sales between $73.75 billion and $74.75 billion for 2025, with expectations of improved operating profit across business segments [11]