Slide 1: 2nd Quarter 2023 Conference Call
JAMES D. TAICLET Lockheed Martin Chairman, President and CEO JAY MALAVE Corporation Chief Financial Officer 2nd Quarter 2023 Conference Call July 18, 2023 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. ET July 18, 2023 at: www.lockheedmartin.com/inv
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: 2Q 2023 Results: Strong Financial Results
2Q 2023 Results Strong Financial Results $16.7B $1.9B In Sales Segment Operating Profit* 11.1% $6.63 1.7x Segment Operating Margin* Earnings Per Share Book-to-Bill Ratio* $0.8B $0.8B $0.8B $0.7B Delivered in Free Cash Flow* Of Share Repurchases In Dividends Of Independent Research & Strategic Capita
Slide 4: 2Q 2023 Results: Sales and Segment Operating Profit
2Q 2023 Results Sales ($M) Segment Operating Profit* ($M) $16,693 $1,855 $15,446 $1,763 11.1% 11.4% +8% +5% YoY YoY 2Q 2022 2Q 2023 2Q 2022 2Q 2023 Strong Volume in 2Q *See Charts 15 and 16 for Definitions of Non-GAAP Measures 2Q Earnings Results Conference Call 4
Slide 5: 2Q 2023 Earnings Per Share (EPS) Comparison
2Q 2023 Earnings Per Share (EPS) Comparison $6.73 $6.32 $0.10 Adjusted EPS $6.63 (+) Segment Profit Adjusted EPS* (+) Lower Share Count GAAP EPS (-) Interest Expense $5.16 $1.16 2Q 2022 2Q 2023 EPS Driven by Favorable Volume and Absence of Pension Settlement Charge *See Charts 15 and 16 for Definiti
Slide 6: Cash Returned to Shareholders
Cash Returned to Shareholders 2nd Quarter 2023 Year-to-Date 2023 $2,792 $1,508 $2,041 137% $1,542 Dividends $758 Dividends $771 196% $750 $1,250 Share Share Repurchases Repurchases Free Cash Flow* Cash Returned Free Cash Flow* Cash Returned Sustained Capital Deployment *See Charts 15 and 16 for Defi
Slide 7: Aeronautics
Aeronautics Sales ($M) Segment Operating Profit* ($M) $6,875 $718 $5,862 $613 10.4% 10.5% Celebrating 80 Years of Innovation 2Q 2022 2Q 2023 2Q 2022 2Q 2023 *See Charts 15 and 16 for Definitions of Non-GAAP Measures 2Q 2023 Drivers Sales: Increased 17% YoY Operating Profit: Increased 17% YoY Higher
Slide 8: Missiles and Fire Control
Missiles and Fire Control Sales ($M) Segment Operating Profit* ($M) $418 $2,747 $2,755 $371 15.2% 13.5% 2Q 2022 2Q 2023 2Q 2022 2Q 2023 *See Charts 15 and 16 for Definitions of Non-GAAP Measures 2Q 2023 Drivers 3.3x MFC Book-to-Bill Sales: Comparable YoY Operating Profit: Decreased 11% YoY Higher Vo
Slide 9: Rotary and Mission Systems
Rotary and Mission Systems Sales ($M) Segment Operating Profit* ($M) $4,012 $3,897 $461 $454 11.5% 11.6% Joint Fires Network at Northern Edge 2Q 2022 2Q 2023 2Q 2022 2Q 2023 *See Charts 15 and 16 for Definitions of Non-GAAP Measures 2Q 2023 Drivers Sales: Decreased 3% YoY Operating Profit: Decreased
Slide 10: Space
Space Sales ($M) Segment Operating Profit* ($M) $3,166 $312 $2,825 $271 9.9% 9.6% 2Q 2022 2Q 2023 2Q 2022 2Q 2023 *See Charts 15 and 16 for Definitions of Non-GAAP Measures 2Q 2023 Drivers Sales: Increased 12% YoY Operating Profit: Increased 15% YoY Higher Volume on NGI, Higher Volume and Equity Ear
Slide 11: 2023 Outlook
2023 Outlook ($M), Except for EPS April Outlook July Outlook Sales $65,000 - $66,000 $66,250 - $66,750 Segment Operating Profit* $7,255 - $7,355 $7,325 - $7,375 Total FAS / CAS Pension Adjustment ~$2,100 ~$2,100 Diluted EPS ~$26.60 - $26.90 ~$27.00 - $27.20 Cash From Operations ≥ $8,150 ≥ $8,150 Cap
Slide 12: Full Year 2023 Earnings Per Share Expectation Walk
Full Year 2023 Earnings Per Share Expectation Walk See the company’s second quarter earnings release for a description of the assumptions on which the 2023 Outlook is based. 2Q Earnings Results Conference Call 12
Slide 13: Summary
Summary • Strong 2nd Quarter • Record Backlog Provides Foundation for Growth • Continued Execution of Cash Deployment Strategy • 2023 Sales, Segment Operating Profit and EPS Guidance Increased • Supported by Customer Demand and Year-to-Date Results • Accelerated Return to Growth • Remain Focused on
Slide 14: Lockheed Martin
LOCKHEED MARTIN
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
Appendix I April 2023 Outlook July 2023 Outlook Sales ~$65,000 – 66,000 ~$66,250 – 66,750 Segment Operating Profit* ~$7,255 – 7,355 ~$7,325 – 7,375 Segment Margin ~11.2% ~11.1% FAS/CAS Operating Adjustment** ~$1,660 ~$1,660 Other, net ~($570) ~($585) Consolidated Operating Profit ~$8,345 – 8,445 ~$8
Slide 18: Appendix II
Appendix II April Guidance July Guidance 2023 Outlook ($M) 2023 Outlook ($M) Segment Segment Sales Sales Operating Profit* Operating Profit * AERO $26,500 – 26,800 $2,775 – 2,805 AERO $26,800 – 27,000 $2,805 – 2,825 MFC 11,150 – 11,350 1,510 – 1,530 MFC 11,200 – 11,300 1,515 – 1,525 RMS 15,800 – 16,
Slide 19: Appendix III: Outlook Total FAS income (expense) and CAS costs
Appendix III 2023 Outlook Total FAS income (expense) and CAS costs FAS pension income ~ $ 375 Less: CAS pension cost ~ 1,725 Total FAS/CAS pension adjustment ~ $ 2,100 Service and non-service cost reconciliation FAS pension service cost ~ $ (65) Less: CAS pension cost ~ 1,725 FAS/CAS operating adjus