Slide 1: Lockheed Martin Corporation 4th Quarter 2023 Conference Call
JAMES D. TAICLET Chairman, President and CEO JAY MALAVE Chief Financial Officer Lockheed Martin Corporation 4th Quarter 2023 Conference Call January 23, 2024 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. ET January 23, 2024 at: www.lockheedmartin.c
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: 4Q 2023 Results: Strong Finish to the Year
4Q 2023 Results Strong Finish to the Year $18.9B $2.0B Sales Segment Operating Profit* 10.8% $7.58 1.2x Segment Operating Margin* Earnings Per Share Book-to-Bill Ratio* $1.7B $3.0B $0.8B $1.1B Delivered in Free Cash Flow* Of Share Repurchases In Dividends Of Independent Research & Returns to Shareho
Slide 4: 4Q 2023 Results
4Q 2023 Results Sales ($M) Segment Operating Profit* ($M) $18,991 $18,874 $2,068 $2,042 10.9% 10.8% (1%) YoY (1%) YoY 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Comparable Year-over-Year Performance *See Charts 15 and 16 for Definitions of Non-GAAP Measures 4Q Earnings Results Conference Call 4
Slide 5: 4Q 2023 Earnings Per Share (EPS) Comparison
4Q 2023 Earnings Per Share (EPS) Comparison $7.79 $7.90 $0.32 $0.39 $7.40 $7.58 YoY GAAP Drivers (-) Segment Profit / Margin (Net Profit Adjustments) Adjusted EPS* (-) Interest Expense, Net GAAP EPS (+) Share Count (+) Other, Mark-to-Market 4Q 2022 4Q 2023 *See Charts 15 and 16 for Definitions of No
Slide 6: Cash Returned to Shareholders
Cash Returned to Shareholders 4th Quarter 2023 ($M) Full Year 2023 ($M) $3,767 $9,056 $767 Dividends $3,056 $6,229 Dividends 145% $1,661 227% $3,000 Share $6,000 Repurchases Share Repurchases Free Cash Flow* Cash Returned Free Cash Flow* Cash Returned Delivering Value through Capital Deployment *See
Slide 7: Aeronautics
Aeronautics 4th Quarter ($M) Full Year ($M) Sales Operating Profit* Sales Operating Profit* $26,987 $27,474 $7,635 $7,613 $2,867 $2,825 $816 $761 10.7% 10.0% 10.6% 10.3% 2022 2023 2022 2023 2022 2023 2022 2023 Sales: Comparable Sales: Increased 2% Ramps at Skunk Works and F-16, Growth at Skunk Works
Slide 8: Missiles and Fire Control
Missiles and Fire Control 4th Quarter ($M) Full Year ($M) Sales Operating Profit* Sales Operating Profit* $11,317 $11,253 $3,287 $3,171 $1,637 $1,541 $451 $395 14.5% 13.7% 13.7% 12.5% 2022 2023 2022 2023 2022 2023 2022 2023 Sales: Decreased 4% Sales: Decreased 1% Lower Volume on PAC-3, Partially Off
Slide 9: Rotary and Mission Systems
Rotary and Mission Systems 4th Quarter ($M) Full Year ($M) Sales Operating Profit* Sales Operating Profit* $16,148 $16,239 $4,803 $4,711 $1,906 $1,865 $567 $579 11.8% 11.5% 11.8% 12.3% 2022 2023 2022 2023 2022 2023 2022 2023 Sales: Decreased 2% Sales: Increased 1% Lower Volume at IWSS and TLS, IWSS
Slide 10: Space
Space 4th Quarter ($M) Full Year ($M) Sales Operating Profit* Sales Operating Profit* $12,605 $11,532 $3,266 $3,379 $1,057 $1,158 $307 $234 9.2% 9.2% 7.2% 9.1% 2022 2023 2022 2023 2022 2023 2022 2023 Sales: Increased 3% Sales: Increased 9% Higher Volume on NGI Higher Growth Across the Portfolio Oper
Slide 11: 2024 Outlook
2024 Outlook ($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 Repurchases ~$4,000 *See C
Slide 12: EPS Walk
EPS Walk ($0.35) *See Charts 15 and 16 for Definitions of Non-GAAP Measures See the company’s fourth quarter earnings release for a description of the assumptions on which the 2024 Outlook is based. 4Q Earnings Results Conference Call 12
Slide 13: Summary
Summary • Record Backlog Provides Visibility to Long-Term Growth • Investments in 1LMX to Maintain Industry Leadership • Committed to Disciplined and Dynamic Capital Returns to Shareholders 4Q Earnings Results Conference Call 13
Slide 14: Lockheed Martin
LOCKHEED MARTINZ
Slide 15: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Non-GAAP Financial Measures Disclosure This presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management believes that these non-GAAP financial mea
Slide 16: Definitions of Non-GAAP Measures
. Definitions of Non-GAAP Measures Adjusted Earnings Per Share (non-GAAP) Diluted earnings per share (EPS) was impacted by certain non-operational charges for all periods. Management believes the presentation of this measure adjusted for the impacts of these non-operational items is useful to invest
Slide 17: Appendix I: 2024 Outlook
Appendix I 2024 Outlook ($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 ~($1,02
Slide 18: Appendix II: Segment Outlook
Appendix II Segment ($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 15 and 16 for Definitions of Non-GAAP Measures. 4Q
Slide 19: Appendix III
Appendix III 4Q Earnings Results Conference Call 19
Slide 20: Appendix IV: Acronyms
Appendix IV Acronyms GAAP – Generally Accepted Accounting Principles EPS – Earnings per Share FAS – Financial Accounting Standards CAS – Cost Accounting Standards TSM – Tactical & Strike Missiles IAMD – Integrated Air & Missile Defense SGS – Sensors & Global Sustainment PAC-3 – Patriot Advanced Capa