Slide 1: Lockheed Martin Corporation 1st Quarter 2024 Conference Call
JAMES D. TAICLET Chairman, President and CEO JAY MALAVE Chief Financial Officer Lockheed Martin Corporation 1st Quarter 2024 Conference Call April 23, 2024 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. ET April 23, 2024 at: www.lockheedmartin.com/i
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The word
Slide 3: 1Q 2024: Strong Start to 2024
1Q 2024: Strong Start to 2024 Financial • Strong Top-line and Free Cash Flow Results • Robust Backlog of >$159B US • FY24 DoD Budget Supports Near-term Outlook Budget • FY25 Presidential Budget Largely In-line with Expectations • F-35 TR3 on Track Operations / • Sikorsky Outlook Stable 21st Century
Slide 4: 1Q 2024 Financial Highlights: Delivering Solid Results
1Q 2024 Financial Highlights: Delivering Solid Results $17.2B $1.7B Sales Segment Operating Profit* 10.1% $6.39 0.9x Segment Operating Margin* Earnings Per Share Book-to-Bill Ratio* $1.3B $1.0B $0.8B $0.7B Delivered in Free Cash Flow* Of Share Repurchases In Dividends Of Independent Research & Retur
Slide 5: Aeronautics
Aeronautics 1st Quarter ($M) Sales Operating Profit* $6,845 $6,269 $675 $679 10.8% 9.9% 2023 2024 2023 2024 Sales: Increased 9% Operating Profit: Comparable Volume on F-35 and SkunkWorks®, Higher Volume, Offset by Production Ramp on F-16 Lower Net Profit Adjustments F-35 Joint Strike Fighter *See Ch
Slide 6: Missiles & Fire Control
Missiles & Fire Control 1st Quarter ($M) Sales Operating Profit* $2,993 13.7% $2,388 $377 $411 Classified Loss $311 15.8% 10.4% 2023 2024 2023 2024 Sales: Increased 25% Operating Profit: Decreased 18% Production Ramps at TSM (primarily, Classified Program Loss and GMLRS, HIMARS and JASSM/LRASM) and
Slide 7: Rotary & Mission Systems
Rotary & Mission Systems 1st Quarter ($M) Sales Operating Profit* $4,088 $3,510 $430 $350 10.0% 10.5% 2023 2024 2023 2024 Sales: Increased 16% Operating Profit: Increased 23% Higher Volume Across the Portfolio: Higher Volume and Favorable Mix, IWSS (AEGIS, Radars & Lasers), Partially Offset by Lower
Slide 8: Space
Space 1st Quarter ($M) Sales Operating Profit* $3,269 $2,959 $325 $280 9.5% 9.9% 2023 2024 2023 2024 Sales: Increased 10% Operating Profit: Increased 16% Higher Volume Across the Portfolio: Higher Volume and ULA Equity Earnings, SMD (FBM, Hypersonics, NGI) and Partially Offset by Lower Net Profit NS
Slide 9: On Track to Meet 2024 Outlook
On Track to Meet 2024 Outlook ($M), Except for EPS Sales $68,500 - $70,000 Segment Operating Profit* $7,175 - $7,375 Total FAS/CAS Pension Adjustment ~$1,685 Diluted EPS $25.65 - $26.35 Cash from Operations $7,750 - 8,050 Capital Expenditures ~($1,750) Free Cash Flow* $6,000 - $6,300 Share Repurchas
Slide 10: Summary: Building Momentum
Summary: Building Momentum • Solid Start to 2024… Remain Focused on Operational Execution • Optimizing Domain Knowledge and 1LMX to Deliver 21st Century Security Solutions • Committed to Disciplined & Dynamic Capital Deployment 1Q Earnings Results Conference Call 10
Slide 11: Lockheed Martin
LOCKHEED MARTINZ
Slide 12: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Non-GAAP Financial Measures Disclosure This presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial mea
Slide 13: Definitions of Non-GAAP Measures
. Definitions of Non-GAAP Measures Adjusted Earnings Per Share (non-GAAP) Diluted earnings per share (EPS) was impacted by certain non-operational charges for all periods. Management believes the presentation of this measure adjusted for the impacts of these non-operational items is useful to invest
Slide 14: Appendix I: 2024 Outlook
Appendix I 2024 Outlook ($M), Except for EPS Sales ~$68,500 - 70,000 Segment Operating Profit* ~$7,175 - 7,375 Segment Margin 10.5% FAS/CAS Operating Adjustment** ~$1,625 Other, net ~($645) Consolidated Operating Profit ~$8,155 - 8,355 Net-Operating FAS Pension Income** ~$60 Interest Expense ~($1,02
Slide 15: Appendix II: Segment Outlook
Appendix II Segment ($M) Sales Operating Profit* AERO $27,750 – 28,250 $2,750 – 2,800 MFC $11,900 – 12,100 $1,375 – 1,425 RMS $16,450 – 16,850 $1,900 – 1,950 SPACE $12,400 – 12,800 $1,150 – 1,200 LM Total $68,500 – 70,000 $7,175 – 7,375 *See Charts 12 and 13 for Definitions of Non-GAAP Measures. 1Q
Slide 16: Appendix III
Appendix III 1Q Earnings Results Conference Call 16
Slide 17: Appendix IV: Normalized 1Q24 vs 1Q23 Sales Growth
Appendix IV Normalized* 1Q24 vs 1Q23 Sales Growth ($M) AERO MFC RMS SPACE $6,791 $6,845 $4,088 $3,269 $3,803 $3,206 $2,993 $2,587 +1% +16% +8% +2% 2023 2024 2023 2024 2023 2024 2023 2024 Lockheed Martin +5% *Adjusted prior year sales to reflect 13 weeks. See Charts 12 and 13 for Definitions of Non-G
Slide 18: Appendix V: Acronyms
Appendix V Acronyms GAAP – Generally Accepted Accounting Principles IWSS – Integrated Warfare Systems & Sensors EPS – Earnings per Share C6ISR – Command, Control, Communications, Computers, FAS – Financial Accounting Standards Cyber, Combat Systems, Intelligence, Surveillance & Reconnaissance CAS –